Principles of Food, Beverage, and Labor Cost Controls

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 Association, assisting restaurants in their operations. He taught food management and cost control for 23 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 of the School of Hospitality, Tourism and Culinary Management at Southern New Hampshire University (formerly New Hampshire College).

Preface.PART I: Introduction to Food, Beverage, and Labor Controls.Chapter 1: Cost and Sales Concepts.Introduction.Cost Concepts.Sales Concepts.The Cost-to-Sales Ratio: Cost Percent.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.Chapter 2: The Control Process. Introduction.Control.The Control Process.Control Systems.Cost/Benefit Ratio.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.Chapter 3: Cost/Volume/Profit Relationships.Introduction.The Cost/Volume/Profit Equation.Variable Rate and Contribution Rate.Break-Even Point.Cost/Volume/Profit Calculations for the Grandview Bistro.Cost Control and the Cost/Volume/Profit Equation.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.PART II: Food Control.Chapter 4: Food Purchasing and Receiving Control. Introduction.The Control Process-Purchasing and Receiving.Developing Standards and Standard Procedures for Purchasing.Standing Orders.Receiving Controls.Establishing Standard Procedures for Receiving.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.Chapter 5: Food Storing and Issuing Control.Introduction.Storing Control: Establishing Standards and Standard Procedures for Storing.Issuing Control: Establishing Standards and Standard Procedures for Issuing.Food and Beverage Transfers.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.Chapter 6: Food Production Control I: Portions.Introduction.Establishing Standards and Standard Procedures.Calculating Standard Portion Costs.Advantages and Disadvantages of Standardized Yield.Using Yield Percentages.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.Chapter 7: Food Production Control II: Quantities. Introduction.Establishing Standards and Standard Procedures.Determining Production Quantities.Control of Preportioned Entrees.A Word of Caution.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.Chapter 8: Monitoring Foodservice Operations I: Monthly Inventory and Monthly Food Cost. Introduction.Monthly Inventory.Reports to Management.Inventory Turnover.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.Chapter 9: Monitoring Foodservice Operations II: Daily Food Cost. Introduction.Determining Daily Food Cost.Book versus Actual Inventory Comparison.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.Chapter 10: Monitoring Foodservice Operations III: Actual versus Standard Food Costs.Introduction.Determining Standard Cost.Comparing Actual and Standard Costs.Periodic Comparison.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.Chapter 11: Menu Engineering and Analysis.Introduction.Menu Engineering.Menu Analysis.Using 100 Percent of the Average for Number Sold.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.Chapter 12: Controlling Food Sales.Introduction.The Goals of Sales Control.Optimizing Number of Customers.Maximizing Profit.Controlling Revenue.Revenue Control Using Manual Means.Revenue Control Using Computers.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.PART III: Beverage Control.Chapter 13: Beverage Purchasing Control.Introduction.Control Process and Purchasing.Alcoholic Beverages.Nonalcoholic Beverages.Beverage Purchasing.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.Chapter 14: Beverage Receiving, Storing, and Issuing Control.Introduction.Receiving.Storing.Issuing.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.Chapter 15: Beverage Production Control.Introduction.Objectives of Beverage Production Control.Establishing Standards and Standard Procedures for Production.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.Chapter 16: Monitoring Beverage Operations.Introduction.The Cost Approach.The Liquid Measure Approach.The Sales Value Approach.Inventory Turnover.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.Chapter 17: Beverage Sales Control. Introduction.The Objectives of Beverage Sales Control.Guest Checks and Control.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.PART IV: Labor Control.Chapter 18: Labor Cost Considerations.Introduction.Employee Compensation.Determinants of Total Labor Costs and Labor Cost Percents.Labor Cost Control.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises .Chapter 19: Establishing Performance Standards.Introduction.Establishing Performance Standards and Standard Procedures.Organizing the Enterprise.Preparing Job Descriptions.Scheduling Employees.Performance Standards Based on Test Period.Standard Staffing Requirements.Standard Work Hours.Standard Cost.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.Chapter 20: Training Staff.Introduction.A Definition of Training.The Purpose of Training.The Training Program.Centralized versus Localized Training.Training Manuals.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Diskette Exercises.Chapter 21: Monitoring Performance and Taking Corrective Action.Introduction.Monitoring Performance.Taking Corrective Action to Address Discrepancy between Standards and Performance.Chapter Essentials.Key Terms in This Chapter.Questions and Problems.Afterword.Glossary.Index.