© 2011 John Wiley and Sons, Inc. All Rights Reserved Selection and Procurement for the Hospitality Industry Purchasing ANDREW HALE FEINSTEIN AND JOHN M. STEFANELLI E i g h t h E d i t i o n

© 2011 John Wiley and Sons, Inc. All Rights Reserved CHAPTER Processed Produce and Other Grocery Items 18

© 2011 John Wiley and Sons, Inc. All Rights Reserved YOU SHOULD BE ABLE TO: Explain management considerations surrounding the selection and procurement of processed produce and other grocery items. Identify the selection factors for processed produce and other grocery items, including government grades.

© 2011 John Wiley and Sons, Inc. All Rights Reserved YOU SHOULD BE ABLE TO (CONT.): Create product specifications for processed produce or other grocery items. Describe the process of purchasing, receiving, storing, and issuing processed produce and other grocery items.

© 2011 John Wiley and Sons, Inc. All Rights Reserved MANAGEMENT CONSIDERATIONS What processing method should you use? Dried Refrigerated Frozen Pickling Fermentation Chemical preservatives

© 2011 John Wiley and Sons, Inc. All Rights Reserved MANAGEMENT CONSIDERATIONS (CONT.) Selection is affected by: Food quality AP price Convenience Substitutions Buyer’s neglect Employees cavalier attitude toward these products

© 2011 John Wiley and Sons, Inc. All Rights Reserved MANAGEMENT CONSIDERATIONS (CONT.) Impulse purchases New products – combinations of old Opportunity buys Container size and EP cost

© 2011 John Wiley and Sons, Inc. All Rights Reserved SELECTION FACTORS Intended use Exact name U.S. government inspection and grades Canned, bottled and frozen items A – the very best B – slightly less perfect C – may contain some broken and uneven pieces

© 2011 John Wiley and Sons, Inc. All Rights Reserved SELECTION FACTORS (CONT.) U.S. government inspection and grades (cont.) Dried foods A – the most attractive, most flavor B – not as attractive C – more variations in taste and appearance (usually broken pieces)

© 2011 John Wiley and Sons, Inc. All Rights Reserved SELECTION FACTORS (CONT.) Packers’ brands Product size Size of container Packaging material and procedures Drained weight Type of processing Color Form

© 2011 John Wiley and Sons, Inc. All Rights Reserved SELECTION FACTORS (CONT.) Packing medium Water Syrup No added medium Brix level Amount of sauce (for vegetables) Additives and preservatives

© 2011 John Wiley and Sons, Inc. All Rights Reserved SELECTION FACTORS (CONT.) Other information on label Packaging dates Freshness dates Serving cost data Lot numbers Child Nutrition information

© 2011 John Wiley and Sons, Inc. All Rights Reserved SELECTION FACTORS (CONT.) One-stop shopping opportunities AP price EP cost includes Cost of product Cost of labor Cost of energy Other overhead expenses

© 2011 John Wiley and Sons, Inc. All Rights Reserved SELECTION FACTORS (CONT.) Supplier services Canned products require nominal services Frozen items require greater service Stockless purchasing (protected AP price) Reasonable “break points” Shortage list Delivery schedule

© 2011 John Wiley and Sons, Inc. All Rights Reserved SELECTION FACTORS (CONT.) Local supplier or national source Primary source or drop shipping Buy direct from a local supplier

© 2011 John Wiley and Sons, Inc. All Rights Reserved PURCHASING PROCESSED PRODUCE AND OTHER GROCERY ITEMS Obtain copies of reference materials Determine what to order Determine ordering procedure Day-to-day Long-term contract on bid basis Test products – can-cutting tests; recipe testing

© 2011 John Wiley and Sons, Inc. All Rights Reserved RECEIVING Inspect canned and bottled products Swelling, leaks, dents, etc Dried Check condition of containers Frozen Thawing and refreezing Check temperature

© 2011 John Wiley and Sons, Inc. All Rights Reserved STORAGE Canned and bottled products Dry area at 50°-70° F Dried Dry and cool Frozen -10° F or lower Avoid fluctuations in temperature

© 2011 John Wiley and Sons, Inc. All Rights Reserved ISSUING PROCESSED PRODUCE AND OTHER GROCERY ITEMS Written stock requisitions for every item Requisitions are for no more than is needed Require notes on in-process inventory prior to filling a requisition EP cost is most vulnerable to attack in area of in-process inventories