© 2003, Educational Institute Chapter 7 Food and Beverage Management Applications Managing Technology in the Hospitality Industry Fourth Edition (469T or 469)

© 2003, Educational Institute 1 Competencies for Food and Beverage Management Applications 1.Identify the files typically maintained by recipe management software applications for food and beverage operations.. 2.Describe how information from recipe management software applications helps managers control food and beverage operations. 3.Explain how food and beverage managers use various reports generated by sales analysis software applications. (continued)

© 2003, Educational Institute 2 Competencies for Food and Beverage Management Applications 4.Explain the features and functions of menu engineering software.. 5.Describe the advantages of integrated food and beverage software in relation to precosting and postcosting functions. 6.Explain how managers use reports generated by automated beverage control systems. (continued)

© 2003, Educational Institute 3 Ingredient File Data Ingredient code number Ingredient description Purchase unit Purchase unit cost Issue unit Issue unit cost Recipe unit Recipe unit cost

© 2003, Educational Institute 4 Standard Recipe File Data Recipe code number Recipe name Number of portions Portion size Recipe unit Recipe unit cost Menu selling price Food cost percentage

© 2003, Educational Institute 5 Menu Item File Data Identification number Descriptor Recipe code number Selling price Ingredient quantities Sales totals

© 2003, Educational Institute 6 Ingredient File Conversion Tables To maintain a perpetual inventory record, conversion tables track ingredients (by unit and by cost) as they pass through the control points of: Purchasing Receiving Storing Issuing Production Service

© 2003, Educational Institute 7 Chaining Recipes Recipes used as ingredients (sub-recipes) for a standard recipe item that requires an unusually large number of ingredients.

© 2003, Educational Institute 8 Sales Reports Daily sales report: itemizes and summarizes revenue for a day. Weekly sales spreadsheet: weekly summary of daily sales reports. Sales category analysis report: amounts sold by sales category and day-parts. Marketing category report: weekly totals summarizing revenue earned by department and category.

© 2003, Educational Institute 9 Managing Plowhorses Plowhorses: menu items high in menu mix but low in contribution margin. Strategies: Increase prices carefully. Test for demand. Relocate to lower profile on menu. Shift demand to more profitable items. Combine with lower cost products. Assess the direct labor factor. Consider portion reduction.

© 2003, Educational Institute 10 Managing Puzzles Puzzles: menu items high in contribution margin but low in popularity. Strategies: Shift demand to these items. Consider a price decrease. Add value to the item.

© 2003, Educational Institute 11 Managing Stars Stars: menu items high in contribution margin and high in popularity. Strategies: Maintain rigid standards. Place for high visibility location on menu. Test for selling price inelasticity. Use suggestive selling techniques.

© 2003, Educational Institute 12 Managing Dogs Dogs: menu items low in contribution margin and low in popularity. Strategies: Increase selling price. Remove from menu.

© 2003, Educational Institute 13 Pre/Postcosting Precosting: uses forecasted sales to determine a menus profitability before menu produced. Postcosting: uses actual sales figures to determine a menus profitability after menu produced.

© 2003, Educational Institute 14 Beverage Control System Reports Sales by Major Beverage Category Report Sales by Beverage Server Report Outstanding Guest Checks Report Settlement Methods Report Net Sales by Time of Day Report Sales Mix by Major Product Report Product Usage Report