. 1. What do
you mean by Food Cost? Write in detail the advantages of Food Cost
Control.
Answer : Food Cost is defined as the cost of
raw material used to prepare a dish. Food Cost is one of the major costs
of the Restaurant and there is always a risk of food cost going high and low
due to the negligence of the staff. If the food cost goes high then the cost of
sale will go high resulting in less gross profit . On the other hand if the
food cost is low then that means either the guest is given a small portion or
he is served sub standard quality of food. Thus result will be subsequently
losing permanent customers and hence will reduce sale and profit. So by proper
controlling the cost of food, we can assure the profitability , permanent
customer and increase in sale volume & profit.
The main objective and advantage of cost control are
as follows :
a. Analysis of
income and expenditure of organization.
b. Establishing and
maintaining the standard of service of the establishment.
c. Pricing of menu
d. Prevention of waste .
e. Prevention of frauds .
f. Prevention
of theft and pilferage .
g. Source of
information for management reports .
Q. 2. Define
food cost. Write in detail the limitations of food cost control.
Answer : Food Cost is defined as the cost of
raw materials used to prepare a dish. Though it looks very simple that is the
standard Recipe and Portion Size Control is followed then the food cost will be
always under control but in reality cost may differ . Some of the factors which
affects the food Cost are :
1. Fluctuation in
Raw Material Cost:
2. Wrong
Purchasing of Raw Material:
3. Reduction in
Sale:
4. Wastage during
preparation of Food:
5. Pilferage in
Food Sale:
6. Spoilage due
to wrong storage:
Q. 3. Write
in detail the methodology and phases of cost controls.
Answer : There are various methods and phase
at which Cost Control is done . Some of those are as follows :
(i)
Purchasing : Purchasing department must ensure
that right quality of food at competitive price and right quality is procured.
(ii)
Receiving & Storing of raw materials : Proper control is essential
while receiving the raw materials . The raw materials received by stores must
be inspected for the quality and quantity desired . The storekeeper must ensure
that in store there should be a place for everything and Everything is placed ,
so that no food item should get spoiled.
(iii) Issuing :
All goods should be issued after a proper requisition . The rule of First In
First Out (F.I.F.O) must be followed.
(iii)
Production / Wastage Control : The
wastage of all level either portioning , cooking , storing should be as
minimum as possible .
(v) Storing
of Cooked Food : In case any cooked food is left at the end of the
day then it must be stored at proper temperature so that it can be used on the
following day if required.
(iv)
Control while serving Food : Ensure that no food is served without proper KOT
.If Food is allowed to be picked up without proper KOT then this will
increase the food cost .
(vii)
Portion Control : Both the large and smaller portion
is harmful to the hotel / restaurant . A large portion will increase the food
cost while small portion will dissatisfy the guest and may result in losing
them.
(viii)
Standard Recipe : The objective and advantage of Food Cost
Control are to satisfy the guest and make reasonable good profit at all
times. If Standard Recipe is not followed than the guest may not always find
similar standard of dish and this will dissatisfy them ,resulting in permanent
lose of customer and less sale & profit.
Q. 4. Write
in detail the essentials of cost control.
Answer : In the Hotel industry Food Cost is
the major portion of the total cost .So in order to assure the profitability of
the Hotel and sale more than Break Even Point Sale , food Cost Control is very
essential . Food Cost Control is essential for :
a) Proper
Purchasing
b) Control
in Purchasing
c)
In order to follow Purchasing Procedure
d) To
Control Food Production
e) In
order to follow standard recipe and Standard Portion Size
f)
To know total production cost , thus help in fixing the selling price
g)
To regular review of the production , Sale and operating results.
