AOC FOCUS: FOOD AND BEVERAGE CONTROL

FOOD AND BEVERAGE CONTROL

Manfred Muellers, Chairman of the Academy of Chefs, offers a personal viewpoint and perception on this subject.

If I were to approach the subject of food and beverage control from the beginning, it would be extremely complex/ It is universally accepted that food and beverage cost control is the guidance and regulation of costs of operating a food and beverage operation as applied in the hospitality industry. The purpose of this article is to assist in procedures in food and beverage control.

It is my perception that most cost control in the hospitality industry is directed towards material cost (cost of sales) and costs such as labour and other operating costs are not always given the consideration they require.

Much stress should be placed on the ascertainment of the total qualities, e.g. sales, cost of sales, gross profit and nett profit. As such, cost control is to provide a sound basis for pricing. Often prices are fixed by management by comparing prices charged by competitors, which leads to over or under-pricing, creates frustrations, invites dissatisfaction and very often leads to loss of business as the customer/client does not return.

The correct approach to the problem is to determine all costs and market considerations before pricing items for your business. Each operation is run differently and food itens, even if they are called the same, are certainly produced and presented differently. The customer judges as to what is on the plate, as well as the created environment. If good quality is presented, the price will be accepted accordingly.

If your targets are to be achieved, all possible forms of waste must be prevented.

The purchasing of materials is one of the main critical areas one must have experience in, and the ability to evaluate the success of the outcome from inception is required. An effective system of food and beverage cost control must emphasise critical areas and can only be effective with correctly qualified staff assisting the establishment in reaching its predetermined targets. Here, the shortage of qualified chefs and waiters comes to mind. The computer-assisted operation often takes away personal contributions to the process and allows for inferior products as predetermined costs are not flexible which, with many fluctuating prices, does not make consistent quality a realistic target. Compromise is a way to achieve the demanded result.

Numerous operations opt for outsourcing many risk items which gives certain operational areas the time and energy required to finish off a product and lowers the risk of hidden costs. Consistency here is a main benefit at a controllable cost.

The control of food and beverage is certainly more difficult than systems control in operation in other industries: • Sales instability is a realistic occurrence in almost all catering operations • Changes in the volume of business which create regular peaks of activity daily and from day-to-day, as well as from season to season demand an effective method of volume forecasting to prevent losses Food is perishable and overprepared food increases operating costs even if given to staff as their daily meals. The variety of meals produced from one service to another present many control problems relating to the purchase of food items, preparation of meals, cash collection, the cycle of operation, the speed of production, etc.

BEfore a food and beverage cost control system is developed, you need to establish your intention with regards to envissaged profitability and commit to a financial policy which should define the market to the aimed at and which includes: • Nett profit percentage required on sales • Budgeted volume of sales, tyoe of service and comfort provided • Labour cost and overheads • Overall cost of sales, profit margins, etc. • Breakeven analysis • Corrective action • Authority and responsibility • Human resource management • A marketing policy

Remember that satisfied customers are the first essential. Without them, there are no sales to pay costs and to make profit. Therefore, in any consideration of costs, we must first consder customer satisfaction. The dissatisfied customer does not come back.