1. Food Service Financials Manage Your Business Presented by Ann Marie Stein, RD,LD

2. Cost Your Business Budget components –SALES –EXPENSE –PROFIT/LOSS

3. SALES Cafeteria Revenue Catering Revenue Patient Census

4. Expense Labor –wages –taxes and benefits 21%-28% Food Paper Other

5. Profit/Loss Sales- Expense = Profit or loss Key target areas: –Patient food cost- patient menu –Food Production –Retail food cost 30% –Paper or china? –Labor Optimized, OT, Holiday

6. Cost Your Menu Patient menus are the steady food cost item for your department. Some guidelines suggest $1.10- $2.25 for patient or resident food menus. There are many tools to utilize.

7. Gather Data Census : Obtain your yearly, monthly census and calculate an average daily census. Look for seasonal variations. Don’t give up, someone in the organization must track these numbers. No Guessing!

8. Menu Choices Survey your customers Work with your vendors –Sample products for quality and cost –special orders or stocked

9. Menu Choices continued Vendors continued –Ask for incentives Drop size Drop days Case quantity (can you store 10 cases) Specials to unload Sole provider?

10. Production Systems Forecasting:The process of planning for ordering and receiving the right quantity of food. –Portion size/cost –selling price –recipe info –estimate counts –portion factor

11. Production Continued Pre-Production- Preparing the right quantity of food for production. –Portions to prepare –Tally, census, leftover logs, past data.

12. Production Production; Producing and serving the right quantity of food for production. –Portions prepared –Cooking

13. Production Post Production: The process of recording and analyzing what you’ve done in an effort to improve your departments performance. –Portion left –Portion used –Portion factor –Census/register count –variance

14. Production Cycle Forecasting Post ProductionPre Production Production

15. Forecasting Forecasting is: –Estimating customer volume –Matching products needed to meet the estimated volume –Planning the day’s needs –Ordering the necessary products and materials –Receiving the products needed and reacting when products are not available

16. Forecasting How do we forecast? –Use historical data –Analyzing current trends –Consider: weather day of the week special events

17. Forecasting Flow Chart Inventory Stock Levels Meat Order Menus/specials Forecast Census Customer counts Catering counts Write Production sheets Explode Recipes Forecast recipe ingredients for ordering Order Par & need based products Receive products

18. Tools for Forecasting RECIPE PRODUCTION RECORD ORDERING AND RECEIVING GUIDES PREP AND PULL SHEETS

19. Pre-production Clearly defines tasks necessary to enter the production phase Exchange of information about problems,tasks,leftovers,and planning Encourages employee training Promotes good planning pro- active vs. reactive Promotes teamwork Promotes greater efficiency

20. Pre-production What is done during pre-production? – Discuss special events and estimated production quantities –Provide instructions as to product quantities for preparation –Discuss the use of leftovers from previous meals –Discuss contingency plans-what to do if a problem occurs –Conduct employee development and training –Take the initiative to be proactive through improved planning –Demonstrate quality and appearance standards

21. Pre-Production Flowchart Prepare for production meeting Conduct & Document Production meeting Pull & Temper Products Assemble Ingredients Identify & Complete unfinished tasks Ready to produce Production sheet items

22. The Tools For Pre-Production Production Record Production Meeting Production Meeting Agenda Roast Meat Chart Document

23. Production –Foods are produced for final consumption –The culmination of the forecasting and pre- production phases –Quality, appearance, temperature and taste are evaluated and adjusted to meet standards –Product display is arranged and communicated

24. Production Continued What is done during production? –Prepared products are assembled and finished through cooking or cold production methods –Recipe methods are followed to ensure high quality and consistency –Portion sizes are communicated and utensils identified –Display layouts are communicated and demonstrated (garnish) –Foods are properly cooled and all temperatures are monitored to ensure HACCP guidelines are met

25. Production Flowchart Begin Hot/Cold Production Taste Products in process Finish Production Ready to Batch Cook Conduct/ Record Final HACCP Taste & Temps. Check Roast Meat Yields Take/Record HACCP Temps.

26. The Tools For Production Production Record Roast Meat Chart Line Server Guide Food Cooling Log

27. Post - Production Post Production –Completing the production process. –Capturing much of our data –Forecasting for the next cycle period in patient and retail areas –Identify key indicators (satisfaction) –Developing action plans to reduce waste, decrease leftovers and improve our process

28. Post -Production Continued What is done during post- production? –Data is gathered and all forms used during the production process are completely filled out. –Portion factors are calculated, so we can develop accurate forecasts for the next meal cycle. –Leftovers are managed, so they will be reduced at future meals and properly utilized for current meals. –Graphs are created that show us how well we have managed the production process –Audits done to ensure standards.

29. Post-Production Flowchart Remove Product from service lines Count/ record leftovers on production sheet Manager to determine leftover usability Label, Date, & Store determine plan Collect satisfaction waste, etc.results Adjust portion factors for next cycle Complete Production sheet Discard using HACCP guides

30. The Tools For Post-Production Production Record Results Audit forms

31. Retail Food Cost calculating –Food cost average 30% Hamburger/Bun $.95 Fries $.35 Soda $.10 Total food cost –$1.40 Sell at 1.4 * 1.7= $2.38

32. Paper or China? The cost of paper versus China is a question your administrator may ask you. (again and again) Rule of thumb: –Using China and silverware saves 5% compared to paper

33. Labor Wages is usually half of your expense in Healthcare Foodservice. Optimize your labor –How many times and different people are chopping tomatoes. Can one person chop all the tomatoes for the whole day? –Are you using Overtime or contract labor? –Are you staffing down for holidays?

34. Summary The primary goals of managing your business are: –To improve communication –Improve food quality –Know your data & #’s –Manage food, labor supply costs –Reduce waste and leftovers –To improve customer satisfaction –To help us all operate a better department Efficiency and Teamwork

35. Have a Great Day Even Though you may wear many hats SMILE!!!!