1 Questions to ask yourself Where are your biggest problems? What are your top priorities? What challenges are you facing? Whats most important to you in _______? Where do you want to improve? What will happen if you dont solve this problem? What would be the most effective way for you to solve this problem? What effect would this solution have on your business?

2 You Must Have A Working Knowledge Of : Purchasing Receiving Storage Preparation and Production Inventory Management Labor, Training, and Productivity

3 Your Challenge: To Make the Right Decisions Based Upon Your Knowledge and Understanding of The Business, and Your Desire to Add Value to the Guests Experience.

4 Purchasing What Do I Buy? When Do I Buy It? What Quantities Do I Buy? How Much Should I Pay? Who Should I Buy It From?

5 What Do I Buy? The Menu: Inventory List Recipes Sales Quality and Specs: Product Knowledge Right Product for Application Pack Sizes and Quantity: Maximize Storage Eliminate Waste Value: Quality Consistency Cost Control Profit

6 When Do I Buy It? Production Schedule Delivery Schedules Labor Scheduling Product Shelf Life

7 Production Schedule Projected Sales for the Period How Many Days Between Deliveries? Days Sales in Inventory

8 Delivery Schedules Lead Times Special Order or Stock Item Projected Usage Until Next Delivery

9 Scheduling Labor Receiving, Preparing, and Storing Product

10 What Quantities Do I Buy? Par LevelsStandardized Recipes Sales History and Projections Purchasing Book

11 Par Levels Average Daily Usage Production Schedules Delivery Lead Times

12 Stock Par Calculation 1) Determine Average Daily Usage 2) Determine Length of Time Between Deliveries 3) Multiply the Number of Days in the Largest Delivery Plus Lead Time Between Order and Delivery by Average Daily Usage 4) Determine a Safety Factor and Add to Step 3

13 Standardized Recipes The Best Way to Control: Cost of Food and Labor Quality Consistency Waste Published in a Manual for Every Menu Item

14 Purchasing Book Insures Consistency: The Right Product The Right Time The Right Supplier

15 How Much Should I Pay? Product Quality and Specs Service Levels True Cost of Ordering and Receiving

16 Service Which Supplier Consistently Delivers: Accurate, Complete Invoices Compatible Delivery Scheduling Product Knowledge, Information and Specialists Marketing & Menu Ideas

17 True Costs: Placing, Receiving and Processing Orders The True Cost of Time and Production: Order Preparation Order Placement Receiving Processing/Bookkeeping Postage, Bank Charges, etc.

18 Ordering & Receiving Costs Average Invoice $ $1, Order Prep (Time) Phone Call(Time) Receiving Time Invoice Processing/Bookkeeping Postage and Bank Charges ]Total Cost Per Invoice AVG.Number of Invoices 20 4 AVG. Cost Per Invoice Total Processing Costs $ $ SAVINGS of $ per Week (Based upon Purchases of $6, Per Wk.)

19 The Cost of Time:Ordering & Receiving Task $ Order $1,500 Order Order Prep 15 Minutes 35 Minutes Telephone 10 Minutes 20 Minutes Receiving 15 Minutes 35 Minutes Processing 10 Minutes 15 Minutes Bookkeeping,etc. 10 Minutes 15 Minutes [Total 60 Minutes 120 Minutes X # of Invoices x 20 x 4____ Total Time 20 Hours 8 Hours What could your customer do with an extra12 Hrs. Per Week?

20 Supplier Qualifications Product Quality Service Facility Delivery Equipment Complete Product Line Reputation Support Systems

21 Supplier Representation Well Trained Responsible Committed Communication/Information

22 Receiving The Basics: Procedure Training Tools

23 Receiving Procedure Complete Copy of Order Specific Receiving Area Inspected for Accuracy, Damage, Expiration, Temperature Trained Employee Contact List Problem Resolution Plan Storage Plan for Safety, Time, and Temperature Security

24 Receiving-Training Manager or Lead Employee Cross Training

25 Receiving-Tools Insure Product Quality, Shelf Life, Employee Safety Thermometers Scales Two Wheeler, Carts, Lifting Brace

26 Storage Proper Storage Begins With: Procedure Inventory Food Safety and Waste Control Security

27 Storage Procedure FIFO Label Packages Check and Record Temperatures Follow Correct Action for Potential Hazards

28 Inventory Label All Shelves and Products Utilize Order Guides Set Par Levels for All Products Record Usage

29 Food Safety and Waste Control Monitor for Rotation, Expiration, Cross Contamination, and Temperature Storage Areas at Proper Temperature Thermometers: Available and Accurate Clean and Sanitize Storage Area and Equipment

30 Security Back Door Locked Storeroom Requisition Sheets Key Control-Inventory Access Trash Removal Policy Were Outta Here !

31 You Must Have A Working Knowledge Of: Preparation and Production

32 Preparation and Production Controlling Waste Standardized Recipes Proper Tools and Equipment

33 Controlling Waste The N o Garbage CanPractice

34 Standardized Recipes Ensure Consistency and Quality Eliminate Waste and Reduce Costs Save Time and Increase Profit

35 Standardized Recipe: Key Elements

36 Proper Tools and Equipment Professional Quality Knives Hand Tools Measuring Equipment, Strainers, and Sieves Mixing Bowls & Storage Containers Pots and Pans Grinding, Slicing, Mixing & Pureeing

37 You Must Have A Working Knowledge Of: Inventory Management

38 Basic Food Cost Computation Beginning Inventory (Plus) Purchases for Period (Minus) Ending Inventory (Equals) Cost of Sales (Divided by) Period Sales (Equals) Food Cost % $___________________ + $___________________ = ( ) _ $___________________ = ( ) $___________________ $___________________ = ____________________%

39 Basic Food Cost Computation Beginning Inventory (Plus) Purchases for Period (Minus) Ending Inventory (Equals) Cost of Sales (Divided by) Period Sales (Equals) Food Cost % $1, $31, = ($32,000) $10, = ($22,000) $22, $68, = 32.3 %

40 Summary-A Working Knowledge of: Purchasing Receiving Storage Preparation and Production Inventory Management

41 You Must Have a Working Knowledge of: Labor, Training, and Productivity

42 The True Cost of Labor Direct Costs Hidden Costs Cost Controls

43 Hiring, Training, and Retaining Controlling Turnover Recruiting Training and Motivating The Keys to Profitability

44 Questions to ask yourself Whats your Employee Turnover Problem. What are your top priorities for Training Employees? What Labor Cost Control challenges are you facing? Whats most important to you in Customer Service? Where do you want to improve in Employee Retention? What will happen if you dont solve this problem? What would be the most effective way for you to solve this problem? What effect would this solution have on your Profitability?

45 Effective Hiring Practices: Ž Predict Performance Ž Reduce Turnover Ž Increase Productivity and Profit

46 Training and Motivating-I If you think training is expensive, try ignorance