LU8+ LU9 - LU8: Food & Beverage - Standard Cost Tools
25 important questions on LU8+ LU9 - LU8: Food & Beverage - Standard Cost Tools
Control points: Arrow between holding and serving
Control points: Arrow between the serving and service control points
What are the 5 Standard Cost Tools?
- Standard Recipe
- Standard Purchase Specification
- Standard Yield
- Standard Portion Size
- Standard Portion Cost
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What are the 5 Standard Cost Tools?
- Standard Recipe
- Standard Purchase Specification
- Standard Yield
- Standard Portion Size
- Standard Portion Cost
What are de benefites of Purchases Specifications?
- Fewer products may be required
- Reduced purchase costs may be possible
- Multiple suppliers will likely be able to quote prices and compete for the operation's business
What are the disadvantages of Purchases Specifications?
How to develop Standard Recipes
- Determine the desired yield
- List all ingredients in the order they are used
- Decide whether to use weights measures or both
- Express all quantities in practical units or measurements
- Record procedures detailed, concise, and exact terms
- Consider sanitation problems that can arise.
- Provide directions for portioning
- Refine with input from production staff
- Test the recipe
What is the benefit of a Standard Recipe?
- Consistency in taste, appearance, and cost
- Makes it easier for managers to accurately estimate the number of portions to prepare
- Makes it easier for managers to schedule food production employees and required equipment
- Less supervision of employees is required
- Less reliance of a few longtime employees
Standerd Yield Formula
Actual yield should approximate standard yield if properly trimmed, cooked, and portioned
Production loss formula
Standard Yield formula
EP cost Per kg
Cost factor formula
How to calculate the Selling Price (SP) through Ingredient Mark- up methord?
What are Subjective Pricing Methods?
- Reasonable price
- High Price
- Loss leader
- Intuitive Price
What are the 4 different pricing Methods?
- Ingredient mark-up pricing method
- Contribution margin pricing method
- Ratio pricing method
- Simple prime cost method
Objectives Pricing methods
- To ensure the financial goals are met
- To ensure the guest's value and expectations are considered
- Based on data in approved operating budgets
Advantages of the Margin Pricing Method?
- Easy to use
- Practical when reasonably accurate information is available from the operating budget
- Tends to reduce the range of selling prices on the menu
Disadvantage Margin Pricing Method
Advantage Ratio Pricing Method
- Simple to use
- Can be based on operating budget info
Disadvantage Ratio pricing Method
- It is an operation offering both food and beverages, it's necessary to separate non-food costs and profit requirements and profit requirements between the two revenue centers.
- Each meal assumes an equal share of non-food cost and profit
- The ratio doesn't compensate for higher labor costs associated with the preparation of labour-intensive menu items
Simple cost Pricing Method
- Labour Cost per guest
- Prime cost per guest= Labour cost per guest + Menu item portion cost
- Selling Price per menu item= Prime cost per guest / prime costs (labour + F&B) % desired
Disadvantage Simple prime costs method
2 ways in which the use of Standard Purchase Specifications can help to reduce the cost fo sales for a restaurant
- Prevents the hotel from buying ingredients that are of too high quality and price if lower quality and prices ingredient is sufficient
- It enables multiple suppliers to quote prices for the same products and therefore the most competitive price can be chosen
What is a disadvantage to a Standard Recipe?
- may feel that they can no longer be creative in the kitchen or behind the bar
- may resent the need to put things on paper or to print them out from the computer for each day's use
- It takes extra time to standardize existing recipes and to train production employees to follow them precisely
- Some staff members may even be worried to loss their jobs (if anyone can do it, why am I still needed?)
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
