Title Details

Paul R. Dittmer has extensive experience in the food and beverage industry. He is a former hotel manager, food and beverage manager, and a consultant to the U.S. Small Business Administration, assisting restaurants in their operations. He taught food management and cost control for twenty-three years at Southern New Hampshire University (formerly New Hampshire College) and served as division chair and associate professor.

J. Desmond Keefe III is Associate Professor in the School of Hospitality, Tourism, and Culinary Management at Southern New Hampshire University.

PREFACE IX

PART I INTRODUCTION TO FOOD, BEVERAGE, AND LABOR CONTROLS 1

CHAPTER 1 COST AND SALES CONCEPTS 3

INTRODUCTION 4

COST CONCEPTS 10

SALES CONCEPTS 16

THE COST-TO-SALES RATIO: COST PERCENT 22

CHAPTER ESSENTIALS 31

KEY TERMS IN THIS CHAPTER 32

QUESTIONS AND PROBLEMS 32

EXCEL EXERCISES 35

CHAPTER 2 THE CONTROL PROCESS 39

INTRODUCTION 40

CONTROL 40

THE CONTROL PROCESS 43

CONTROL SYSTEMS 60

COST–BENEFIT RATIO 64

CHAPTER ESSENTIALS 66

KEY TERMS IN THIS CHAPTER 66

QUESTIONS AND PROBLEMS 67

EXCEL EXERCISES 70

CHAPTER 3 COST/VOLUME/PROFIT RELATIONSHIPS 71

INTRODUCTION 72

THE COST/VOLUME/PROFIT EQUATION 75

VARIABLE RATE AND CONTRIBUTION RATE 78

BREAK-EVEN POINT 80

COST/VOLUME/PROFIT CALCULATIONS FOR THE GRANDVIEW BISTRO 80

COST CONTROL AND THE COST/VOLUME/PROFIT EQUATION 87

CHAPTER ESSENTIALS 91

KEY TERMS IN THIS CHAPTER 91

QUESTIONS AND PROBLEMS 91

EXCEL EXERCISES 94

PART II FOOD CONTROL 95

CHAPTER 4 FOOD PURCHASING AND RECEIVING CONTROL 97

INTRODUCTION 98

THE CONTROL PROCESS—PURCHASING AND RECEIVING 98

DEVELOPING STANDARDS AND STANDARD PROCEDURES FOR PURCHASING 101

STANDING ORDERS 123

RECEIVING CONTROLS 123

ESTABLISHING STANDARD PROCEDURES FOR RECEIVING 125

CHAPTER ESSENTIALS 133

KEY TERMS IN THIS CHAPTER 134

QUESTIONS AND PROBLEMS 134

EXCEL EXERCISES 136

WEB ADDRESSES 137

CHAPTER 5 FOOD STORING AND ISSUING CONTROL 139

INTRODUCTION 140

STORING CONTROL: ESTABLISHING STANDARDS AND STANDARD PROCEDURES FOR STORING 140

ISSUING CONTROL: ESTABLISHING STANDARDS AND STANDARD PROCEDURES FOR ISSUING 145

FOOD ANDBEVERAGE TRANSFERS 150

CHAPTER ESSENTIALS 156

KEY TERMS IN THIS CHAPTER 156

QUESTIONS AND PROBLEMS 156

EXCEL EXERCISES 162

WEB ADDRESS 162

CHAPTER 6 FOOD PRODUCTION CONTROL I: PORTIONS 163

INTRODUCTION 164

ESTABLISHING STANDARDS AND STANDARD PROCEDURES 164

CALCULATING STANDARD PORTION COSTS 170

ADVANTAGES AND DISADVANTAGES OF STANDARDIZED YIELD 190

USING YIELD PERCENTAGES 191

RECIPE SOFTWARE 192

CHAPTER ESSENTIALS 193

KEY TERMS IN THIS CHAPTER 193

QUESTIONS AND PROBLEMS 194

EXCEL EXERCISES 198

WEB ADDRESS 198

CHAPTER 7 FOOD PRODUCTION CONTROL II: QUANTITIES 199

INTRODUCTION 200

ESTABLISHING STANDARDS AND STANDARDPROCEDURES 200

DETERMINING PRODUCTION QUANTITIES 212

CONTROL OF PREPORTIONED ENTRÉES 221

A WORD OF CAUTION 223

CHAPTER ESSENTIALS 223

KEY TERMS IN THIS CHAPTER 224

QUESTIONS AND PROBLEMS 224

EXCEL EXERCISES 225

WEB ADDRESS 225

CHAPTER 8 MONITORING FOODSERVICE OPERATIONS I: MONTHLY INVENTORY AND MONTHLY FOOD COST 227

INTRODUCTION 228

MONTHLY INVENTORY 229

REPORTS TO MANAGEMENT 243

INVENTORY TURNOVER 247

CHAPTER ESSENTIALS 250

KEY TERMS IN THIS CHAPTER 250

QUESTIONS AND PROBLEMS 251

EXCEL EXERCISES 254

WEB ADDRESS 255

CHAPTER 9 MONITORING FOODSERVICE OPERATIONS II:DAILY FOOD COST 257

INTRODUCTION 258

DETERMINING DAILY FOOD COST 258

BOOK VERSUS ACTUAL INVENTORY COMPARISON 269

CHAPTER ESSENTIALS 273

KEY TERMS IN THIS CHAPTER 274

QUESTIONS AND PROBLEMS 274

EXCEL EXERCISES 278

CHAPTER 10 MONITORING FOODSERVICE OPERATIONS III: ACTUAL VERSUS STANDARD FOOD COSTS 279

INTRODUCTION 280

DETERMINING STANDARD COST 281

COMPARING ACTUAL AND STANDARD COSTS 281

PERIODIC COMPARISON 293

CHAPTER ESSENTIALS 297

KEY TERMS IN THIS CHAPTER 297

QUESTIONS AND PROBLEMS 297

EXCEL EXERCISES 300

CHAPTER 11 MENU ENGINEERING AND ANALYSIS 301

INTRODUCTION 302

MENU ENGINEERING 303

MENU ANALYSIS 309

USING 100 PERCENT OF THE AVERAGE FOR NUMBER SOLD 314

CHAPTER ESSENTIALS 316

KEY TERMS IN THIS CHAPTER 316

QUESTIONS AND PROBLEMS 316

EXCEL EXERCISES 319

WEB ADDRESSES 319

CHAPTER 12 CONTROLLING FOOD SALES 321

INTRODUCTION 322 • THE GOALS OF SALES CONTROL 322 •

OPTIMIZING THE NUMBER OF CUSTOMERS 323

MAXIMIZING PROFIT 332 • CONTROLLING REVENUE 343

REVENUE CONTROL USING MANUAL MEANS 345

REVENUE CONTROL USING COMPUTERS 352

CHAPTER ESSENTIALS 354

KEY TERMS IN THIS CHAPTER 355

QUESTIONS AND PROBLEMS 355

EXCEL EXERCISE 356

PART III BEVERAGE CONTROL 357

CHAPTER 13 BEVERAGE PURCHASING CONTROL 359

INTRODUCTION 360

CONTROL PROCESS AND PURCHASING 360

ALCOHOLIC BEVERAGES 361

NONALCOHOLIC BEVERAGES 368

BEVERAGE PURCHASING 369

CHAPTER ESSENTIALS 383

KEY TERMS IN THIS CHAPTER 383

QUESTIONS AND PROBLEMS 384

EXCEL EXERCISES 385

WEB ADDRESSES 386

CHAPTER 14 BEVERAGE RECEIVING, STORING, AND ISSUING CONTROL 387

INTRODUCTION 388

RECEIVING 388

STORING 392

ISSUING 399

CHAPTER ESSENTIALS 408

KEY TERMS IN THIS CHAPTER 408

QUESTIONS AND PROBLEMS 408

EXCEL EXERCISES 409

WEB ADDRESSES 409

CHAPTER 15 BEVERAGE PRODUCTION CONTROL 411

INTRODUCTION 412

OBJECTIVES OF BEVERAGE PRODUCTION CONTROL 412

ESTABLISHING STANDARDS AND STANDARD PROCEDURES FOR PRODUCTION 413

CHAPTER ESSENTIALS 436

KEY TERMS IN THIS CHAPTER 436

QUESTIONS AND PROBLEMS 436

EXCEL EXERCISES 438

WEB ADDRESSES 438

CHAPTER 16 MONITORING BEVERAGE OPERATIONS 439

INTRODUCTION 440

THE COST APPROACH 440

THE LIQUID MEASURE APPROACH 456

THE SALES VALUE APPROACH 457 INVENTORY TURNOVER 466

CHAPTER ESSENTIALS 468

KEY TERMS IN THIS CHAPTER 469

QUESTIONS AND PROBLEMS 469

EXCEL EXERCISES 473

WEB ADDRESSES 474

CHAPTER 17 BEVERAGE SALES CONTROL 475

INTRODUCTION 476

THE OBJECTIVES OF BEVERAGE SALES CONTROL 476

GUEST CHECKS AND CONTROL 486

CHAPTER ESSENTIALS 490

KEY TERMS IN THIS CHAPTER 491

QUESTIONS AND PROBLEMS 491

EXCEL EXERCISE 492

PART IV LABOR CONTROL 493

CHAPTER 18 LABOR COST CONSIDERATIONS 495

INTRODUCTION 496

EMPLOYEE COMPENSATION 496

DETERMINANTS OF TOTAL LABOR COSTS AND LABOR COST PERCENTS 499

LABOR COST CONTROL 513

CHAPTER ESSENTIALS 515

KEY TERMS IN THIS CHAPTER 516

QUESTIONS AND PROBLEMS 516

EXCEL EXERCISES 517

CHAPTER19 ESTABLISHING PERFORMANCE STANDARDS 519

INTRODUCTION 520

ESTABLISHING PERFORMANCE STANDARDS AND STANDARD PROCEDURES 520

ORGANIZING THE ENTERPRISE 523

PREPARING JOB DESCRIPTIONS 526

SCHEDULING EMPLOYEES 531

PERFORMANCE STANDARDS BASED ON TEST PERIOD 547

STANDARD STAFFING REQUIREMENTS 548

STANDARD WORK HOURS 550

STANDARD COST 552

CHAPTER ESSENTIALS 553

KEY TERMS IN THIS CHAPTER 553

QUESTIONS AND PROBLEMS 554

EXCEL EXERCISES 556

WEB ADDRESSES 557

CHAPTER 20 TRAINING STAFF 559

INTRODUCTION 560

 A DEFINITION OF TRAINING 560

THE PURPOSE OF TRAINING 561

THE TRAINING PROGRAM 561

CENTRALIZED VERSUS LOCALIZED TRAINING 575

TRAINING MANUALS 576

CHAPTER ESSENTIALS 578

KEY TERMS IN THIS CHAPTER 578

QUESTIONS AND PROBLEMS 579

EXCEL EXERCISES 580

WEB ADDRESSES 581

CHAPTER 21 MONITORING PERFORMANCE AND TAKING CORRECTIVE ACTION 583

INTRODUCTION 584

MONITORING PERFORMANCE 584

TAKING CORRECTIVE ACTION TO ADDRESS DISCREPANCIES BETWEEN STANDARDS AND PERFORMANCE 594

CHAPTER ESSENTIALS 599

KEY TERMS IN THIS CHAPTER 599

QUESTIONS AND PROBLEMS 599

WEB ADDRESS 601

EXCEL EXERCISE 601

GLOSSARY 603

INDEX 623