1. KITCHEN MANAGEMENT BLOCK A - PC-1
Gilbert Noussitou 2010

2. Incoming Inventory Inventory Control
Standards & procedures for Receiving & Storing Inventory must be developed for efficiency
Inventory control is important in controlling food costs
The cost of food is one of the two highest costs
Often in the thousands of dollars
Gilbert Noussitou 2010

3. Incoming Inventory Inventory Control
Inventory “notebook” (manual system)
time consuming
loads of paperwork
hard to keep up-to-date therefore often not accurate
Daily inventory reports:
Separated in two broad categories:
stores (storage)
directs (used the same day)
further separated into a number of categories: example: meat, seafood, produce dairy, etc
purchases are then compared with sales of items in same category: meat, seafood, produce, etc.
Gilbert Noussitou 2010

4. Outgoing Inventory Inventory Control
Food is money, you must know where it goes!!
Requisitions:
keep track of transfers form storage to production
If used, they must be precise and consistent
Like computers, only as good as the information you enter
Pricing requisitions:
A good tool to track cost of food used
Must be precise
Gilbert Noussitou 2010

5. Inventory Record Keeping Inventory Control
Perpetual inventory:
Like a bank account: food in = food out
Expensive to maintain (labour intense)
Sometimes used only for expensive items: (the 80/20 rule)
Physical Inventory:
Taken periodically
Sometimes used to verify perpetual inventory
Opening inventory vs. closing inventory
Gilbert Noussitou 2010

6. 80% of consequences stem from 20% of the causes
The 80/20 Rule
80% of consequences stem from 20% of the causes
20%
80%
Food Usage
Food Cost =
Control those 20%!!!
Gilbert Noussitou 2010

7. Inventory Record Keeping Inventory Control
Computerized Inventory Control
Can be time consuming
If set up properly and used properly, these systems can supply very good and detailed info (best price paid, price comparison between suppliers, advance demand forecast, constant inventory, waste (or pilferage) control, etc.
Gilbert Noussitou 2010

8. Pricing Inventory Inventory Control
The last price paid:
simple, most common
The F.I.F.O. method:
very accurate if stock is rotated properly. Each item is costed at the real price paid.
The average price method:
labor intense
rarely used
Gilbert Noussitou 2010

9. Inventory Turnover Inventory Control
Inventory is money; money must be working!
No hard rules: usually two or three times/month
Calculate average inventory:
Opening inventory + closing inventory = Average inventory 2
Calculate cost of food:
Opening inventory + Purchases – Closing inventory = Cost
Calculate turnover rate:
Cost of food
Average inventory
= Turnover Rate
Gilbert Noussitou 2010

10. Basic Restaurant CostsWT
up-FR FR
Food costs (cost of sales)
30%
26%
35%
Staff costs (labour)
34%
20%
Operating Expenses (cost of doing bus)
16%
19%
23%
Occupancy costs (rent, insurance, etc.) 8%
10%
12%
Amortization 4%
Profit
11% 6%
SALES (always)       
100%
Gilbert Noussitou 2010

11. Basic Restaurant Costs
Fixed Costs: not related to sales
Non-controllable
Variable costs: directly related to sales
Controllable
Most staff costs & food costs
Semi variable: not an official category
Management, salaried employees, contracts etc.
Gilbert Noussitou 2010

12. Food costs + labour costs + overhead = SALES
Breakeven Point
Food costs + labour costs + overhead = SALES
No profits = survival but working for nothing
Profit = Sales – (F.C. + L.C. + Overhead)
Gilbert Noussitou 2010

13. (food, labour or others)
Cost Percentage
(food, labour or others)
Should be fairly constant
Understand the difference between the:
Standard food cost
Actual food cost
Cost% =
cost
sales
x 100
portion
whole
x 100 or
Gilbert Noussitou 2010

14. costs sales Breakeven Analysis sales Breakeven point profit
80,000
40,000
20,000
60,000
loss
profit
20, , , , ,000
sales
costs
variable cost
total cost
fixed cost
sales
Gilbert Noussitou 2010

15. Breakeven Point Example
Fixed costs $ 24,000
Variable cost $ 60,000
Sales $100,000 1-
$24,000
$60,000
$100,000
Breakeven point =
Gilbert Noussitou 2010

16. Interpreting Cost Percentages
Allow for comparison with:
Other operations
Different periods
Budget guidelines
Rule of Thumb:
F.C% + L.C. = max 80%
Gilbert Noussitou 2010

17. Using Cost Percentages
Calculate the menu price (sale price)
cost
cost %
= S.P. or
100 %
Cost x
= cost factor (f)
100 (whole)
% (ptn)
Calculate the cost of food from sale price
Food cost = sale price x food cost %
Food cost =
sale price
cost factor
Gilbert Noussitou 2010

18. Sales Ratios & Other Statistics
Dollar sales
Number of customers during a given period
Seat turnover (busy or slow)
Number of items sold
Identify items that are not moving
Dollar sale per cover (average check)
Dollar sale per seat
Dollar sale per wait staff (effectiveness)
Number of customers per wait staff (or staff period)
Dollar sale per cook (effectiveness of menu) (scheduling etc)
Gilbert Noussitou 2010

19. Sales Ratios & Other Statistics for Menu Analysis
In menu analysis the most common statistic is the number of times each item is sold within a given period:
Similar to that is the menu mix or sales mix
It is expressed in % and referred to as item popularity
Item popularity is the number of sales of each item compare to the total of items sold
# of items sold
total items sold
X 100 = menu mix % or sale mix %
Very important information to measure profitability of each item!!
(Most statistics are obtained from P.O.S.)
Gilbert Noussitou 2010

20. Yield & Cost Calculations
There are five main standards related to cost control
Standard Product Specifications
Standard Recipes
Standard Yields:
Ratio of useable product to total weight before processing
Standard Portions
Count – ladle – scoop – bowl – weigh – etc.
Standard Portion Cost
Resulting from standard recipes and standard portions!!!!
Gilbert Noussitou 2010

21. Yield & Cost Calculations
Effective Standards:
are an accurate reflection of desired results based on market expectations
encouraging excellence
are reasonable & challenging
are specific & measurable
allow slight flexibility to encourage creativity & challenge
include feed back (in control system)
Gilbert Noussitou 2010

22. Control Point Flow Chart
Menu Planning 
Purchasing
Receiving
Storing
Issuing
Preparing
Cooking
Holding
Serving
  
☺ Guest Satisfaction & Profit Target☺
Control the processes,
not the end result!!!
Gilbert Noussitou 2010

23. Yield & Cost Calculations
Yield percentage or yield factor is the ratio of useable product (EP) to the total weight (AP) before processing
Edible Portion (EP)
As Purchased (AP)
x 100
Yield % =
100 (whole) (AP)
% (ptn) (EP)
Yield Factor =
Edible Portion Size =
AP Portion Size
Yield % or
Edible Portion Size = AP Portion Size x Factor
Gilbert Noussitou 2010

24. Yield & Cost Calculations
100 (whole) (AP)
% (ptn) (EP)
Cost Factor =
Edible Portion Cost =
AP (Raw) Portion Cost
Cost %
100 %
Edible Portion Cost = AP (Raw) Portion Cost x or
Edible Portion Cost = AP (Raw) Portion Cost x Cost Factor
Edible Unit Cost = AP (Raw) Unit Cost x Cost Factor
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25. Edible Portion can be raw or cooked
Yield Test
Everything you buy must be sold sold!!
Peeling, trimming, boning etc. must be consistent
High temperatures during cooking significantly increase shrinkage
Edible Portion can be raw or cooked
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26. Meat Cutting Yield Test
Portion Size Factor: 0.27
factor
Portion
Size cost EP
total
value
/ kg
yield %
weight
breakdown
150g $5.74
$38.25
$0.68
$2.44
$49.73
$0.80
$9.75
-----
34% 4%
10%
52%
850g
100g
250g
1300g
Fat / gristle
Waste
Trimmings
Edible meat
100%
2,500g
TOTAL
Ptn Size
Cost kg
ptn
cost/kg
Total Cost :
$52.85
Date: ___________
Grade:
AAA
Unit Cost:
$21.14
Pieces:
One
Weigh
2.5 kg
Item:
Beef Tenderloin
Gilbert Noussitou 2010

27. Cooking Loss Test
Quantity cooked: One Time: 2 hours and 30 minutes Temperature: 175C
Breakdown
Weight
Ratio to
Total Weight
Value
Per Kg
Total
Cost of
Usable kg
Portion
Size Cost
Cost Factor
Per
Kg Portion
Original Weight
Trimmed Weight
Loss in Trimming
Cooked Weight
Loss in Cooking
Bones and Trim
Salable Weight
3750 g
2850 g
900 g
2350 g
500 g
750 g
1600 g
100%
76.0%
24%
62.67%
13.33%
20.0%
43.0%
$4.75
$17.81
$11.13
125 g $1.39
Item: Leg of Lamb Portion: 125 g Portion Cost Factor:
Gilbert Noussitou 2010

28. Menu Planning
Gilbert Noussitou 2010

29. The formula for Success
Quality
Value
Fun
Service
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30. want and you build it for them”
Menu Planning
“You don’t build it
for yourself, you
know what the people
want and you build it for them”
Gilbert Noussitou 2010

31. Menu Planning
By definition, a menu is a list of the dishes that will constitute a meal.
It can be a list of all the dishes that will compose a meal of which it is the program.
It can be a list of all items available for sale regardless of their purpose or contents
Its harmony and progression should bring the guest maximum pleasure and satisfaction
Gilbert Noussitou 2010

32. A menu is like the business card of the restaurant
Menu Planning
A menu is like the business card of the restaurant
The menu is the heart of the business
Everything else depends on the menu
The purpose of the Menu is to:
identify for the consumer the food and beverages the operation offers
create customer enthusiasm
increase sales
Gilbert Noussitou 2010

33. Types of Menus Static Menu Cycle Menu Market Menu Hybrid Menu
Patrons are offered the same foods each day
Cycle Menu
Developed for a specific period of time
Market Menu
Based upon product availability during a specific period or season
Hybrid Menu
A blend of static with a cycle or a market menu
Gilbert Noussitou 2010

34. Table d’Hôte or “Prix Fixe”: Other menus:
Menu Formats
Static menus:
standardized, stocks are constant
systems are set & organized, almost perfect
can be boring
Cycle menus:
practical but can be monotonous
À la Carte:
individually priced items
Table d’Hôte or “Prix Fixe”:
offers a complete meal at a set price
Other menus:
hybrid menus, market menus, semi “á la carte”
Gilbert Noussitou 2010

35. Menu Planning: Considerations
Know your customer
The type of restaurant & its classification
The season and/or climate
Know local products/markets/cuisine/trends
The budget and food cost guidelines
The potential number of guests
The facilities available
…….and your wishes if at all possible
Gilbert Noussitou 2010

36. Menu Planning: Choosing the Dishes
Go from the Lightest to the most nutritious and finish with the finest
Contrast: alternate white and red meats, white & brown sauces, lean & fat fish, soft and firm textures etc…..
Respect the basics of nutrition: major groups of food, balance of macronutrients etc.
Avoid repetitions: names, garnishes, cooking methods etc.
Select products that people will recognize and enjoy
Avoid mistakes due to personal tastes
Gilbert Noussitou 2010

37. Menu Planning: Choosing the Dishes
Balance!!
The menu should be nutritionally and gastronomically balanced
Gilbert Noussitou 2010

38. Menu Planning: Writing Menus
Know the proper meaning and spelling of culinary terms
Use simple words and meaningful expressions that guests will know and understand
Customers don't know anything about your food; explain clearly and briefly what the dish is all about
Include information such as: the cut, the size sometimes, the cooking method, the sauce, important ingredients & accompaniments, & perhaps the garnish.
Gilbert Noussitou 2010

39. Menu Planning: Writing Menus
The menu should be comfortable, pleasant to the eye and to the touch (nice paper & other materials)
Language is a major consideration; easy to read language and font, print size and colour are all important
Grammar and spelling must be respected
Use a logical order and reading pattern
Consider location of profitable items, specials etc.
Gilbert Noussitou 2010

40. Menu Planning: Writing Menus
The menu is a SELLING TOOL; it will convince the guest to either buy that item or not; come back another day or not
It can also misinform the guest, which can result in:
an unhappy customer
a waste of food
a waste of time
in all cases, a waste of money
Gilbert Noussitou 2010

41. Menu Planning: Use of Leftovers
Normal waste is costed and sold
Abnormal waste is used but not sold
Proper planning is essential
THE BEST WAY TO USE LEFT-OVERS IS……
NOT TO HAVE ANY!
What is the best way to use leftovers? 
Gilbert Noussitou 2010

42. Applying Purchasing Procedures
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43. Purchasing Procedures
Buy only if needed: ensures quality & controls stock size!!
Establish and respect par stock
Buy from reputable places (or be ready!) Know your suppliers and work with them
Rule of thumb: check a minimum of 3 sources
Be clear on delivery needs: date, time, place, other rules
Know your requirements & product specifications: grades, sizes, origins, fresh, frozen etc…
Be ready to accept (or not to) accept a substitute
Have a system
Gilbert Noussitou 2010

44. Selecting the right supplier
Supplier’s location (short delivery times).
Supplier’s facilities (efficiency, quality, reliability).
Financial stability (long term relationship and support).
Technical ability and knowledge of staff.
Reasonable price (not necessarily the best) in relation to quality.
Compatible attitudes (working relationship and trust are important).
Honesty and fairness (good business practices).
Reciprocal purchasing (potential customer).
Gilbert Noussitou 2010

45. Calculate Food Requirements
Establish portion sizes of main ingredients
Establish the number of portions required
Calculate the amount of food required
Identify quantity of food on hand
Calculate the amount to purchase
Gilbert Noussitou 2010

46. Calculate Food Requirements
Portion Control Chart
FOOD ITEM
MENU ITEM
PORTION SIZE
Shrimp
Shrimp cocktail
80 grams (2.82 oz)
Lemon
1 wedge (6/lemon)
Cocktail sauce
60ml (2.11 oz)
Head lettuce
Tossed salad
¼ head
Tomato
½ each
Dressing
60 ml (2.11 oz)
P. Rib raw trim rdy
Prime rib
500 grams (17.6 oz)
Potato
Baked potato
1 each
Green beans
Carrots
Strawberries
Fresh strawb.
100 grams (3.52 oz)
Gilbert Noussitou 2010

47. Ordering Chart Item Amount Supplier Needed On Hand Order A & B Co.
Green Prod.
Local Supplier 1 2 3 4 5 6 7
Spinach
6 c/s
2 5 cs
4 c/s
2200/cs = 88.00
1485/cs = 59.4
2170/cs = 86.80
Ice.Lettuce
8 c/s
1 cs
7 c/s
1700/cs = 119.0
1675/cs =
1810/cs =
Carrots
3-20 #
20 #
2-20#
1470/bg = 29.4
1390/cs = 27.80
1380/bag = 27.60
Cabbage
2 sacks
½ sc
2 sc
1860/sc = 37.2
1800/sc = 36.00
1810/sack = 36.20
Totals
861.40
799.25
842.16
Gilbert Noussitou 2010