1. Food & Beverage Management I— Cost Control HT225 The Control Process Slide 1 of 15 King Abdul Aziz University Tourism Institute Diploma in Hospitality Management HT 225: Food &Beverage Management 1 – Cost Control Dr Mohamed El-Sayed Abdel-Aziz February 2014

2.  The Control Process o An Introduction o Definition of Control o Responsibility For Control o Instituting Control o The Functions of Management o Why Control is needed o Characteristics of F&B Costs Slide 2 of 15 King Abdul Aziz University Tourism Institute Diploma in Hospitality Management HT 225: Food &Beverage Management 1 – Cost Control

3. Slide 3 of 15 King Abdul Aziz University Tourism Institute Diploma in Hospitality Management HT 225: Food &Beverage Management 1 – Cost Control Management’s primary responsibility is to delivery a quality product or service to the customer, at a price mutually agreeable to both parties.

4. Control o is a process used by managers to direct, regulate and restrain the actions of people Cost Control o the process used by managers to regulate cost and guard against excessive costs  the causes of excessive cost  Inefficiency  waste Slide 4 of 15 King Abdul Aziz University Tourism Institute Diploma in Hospitality Management HT 225: Food &Beverage Management 1 – Cost Control

5. clearly falls onto the management Controlling task differ due to the nature of the establishment  In Small Establishment o taken by the management  In Large Establishment o the assistant manager or controller Slide 5 of 15 King Abdul Aziz University – Tourism Institute Diploma in Hospitality food HT 225: Food &Beverage Management 1 – Cost Control

6. Food & beverage establishment usually involves process of raw material to manufacture products for services. Institute control to stop pilferage control suites the operation, depending on  The nature of material  Service requiring control  The degree of difficulty inherent in instituting the control. Slide 6 of 15 King Abdul Aziz University – Tourism Institute Diploma in Hospitality food HT 225: Food &Beverage Management 1 – Cost Control

7. Management & Supervision functions:-  Planning  Organizing  Staffing  Directing  Controlling  Reporting  Budgeting Slide 7 of 15 King Abdul Aziz University – Tourism Institute Diploma in Hospitality food HT 225: Food &Beverage Management 1 – Cost Control

8.  Planning  Most important and Basic  Its purpose is define, o Where the organization go o What goals it wants to achieve o Who is responsible for what o How it will be performed Slide 8 of 15 King Abdul Aziz University – Tourism Institute Diploma in Hospitality food HT 225: Food &Beverage Management 1 – Cost Control

9. 2. Organizing o result of planning o the objective is to achieve max. efficiency toward goals. 3. Leading o use of communication by a manager to guide, motivate, influence, and direct people’s efforts toward achievement. Slide 9 of 15 King Abdul Aziz University – Tourism Institute Diploma in Hospitality food HT 225: Food &Beverage Management 1 – Cost Control

10. 4. Controlling o focuses on evaluating performance according to the established plans 5. Communication  links all managerial functions  No other functions fulfilled without it  The process of sharing ideas Slide 10 of 15 King Abdul Aziz University – Tourism Institute Diploma in Hospitality food HT 225: Food &Beverage Management 1 – Cost Control

11. The purpose of F and B control systems is to avoid excessive costs Controlling pinpoints the deviations If no control is exercised, work may not be done as desired Slide 11 of 15 King Abdul Aziz University – Tourism Institute Diploma in Hospitality HT 225: Food &Beverage Management 1 – Cost Control

12. 1. the largest single expenditure 2. influenced by various activities 3. Food and beverage control procedures serve as an effective tools of management 4. must used by management Slide 12 of 15 King Abdul Aziz University – Tourism Institute Diploma in Hospitality food HT 225: Food &Beverage Management 1 – Cost Control

13. 5. supported by various types of “standards”  standard purchase specifications  standard portion sizes  standard recipes, etc. 6. F&B control systems should be o simple o flexible Slide 13 of 15 King Abdul Aziz University – Tourism Institute Diploma in Hospitality food HT 225: Food &Beverage Management 1 – Cost Control SPECS

14. 7. Management use every tool and technique to keep costs 8. Complex F&B operations, management assist food and beverage control office. 9. In small F&B operations, the manager maintain the necessary planning and control procedures Slide 14 of 15 King Abdul Aziz University – Tourism Institute Diploma in Hospitality HT 225: Food &Beverage Management 1 – Cost Control

15. Thank You ??????? Slide 15 of 15 King Abdul Aziz University Tourism Institute Diploma in Hospitality Management HT 225: Food &Beverage Management 1 – Cost Control