538 APPENDIX C MANAGEMENT CONTROL FORMS Labor Productivity—Labor Dollars per Guest Served Unit Name: Labor Dollars per Week Cost of Labor Guests Served Guest Served 1 2 3 4 Total Week Sales Labor Hours Used Sales per Labor Hour 1 2 3 4 Total Labor Productivity—Sales per Labor Hour Unit Name:
Appendix C Management Control Forms 539 Matrix Analysis Unit Name: Food Cost Percentage High Food Cost % (Above ) Low Food Cost % (Below ) Low Popularity High Popularity (Below ) (Above ) Contribution Margin High Contribution Margin (Above ) Low Contribution Margin (Below ) Low Popularity High Popularity (Below ) (Above )
Menu Analysis Worksheet Unit Name: Date: 1/1–1/ Item Total Food Number Selling Total Item Total Contribution Contribution Cost Menu Item Sold Price Sales Cost Cost Margin Margin % Total Weighted Average 540
Appendix C Management Control Forms 541 Fixed Total Other Other Expense Sales Expense Variable Expense % Expense Cost % $ $ $ % Other Expense Cost % Unit Name: Performance to Budget Summary Unit Name: Item Budget Actual % of Budget Meals Served Revenue Food Expense Labor Expense Other Expense Total Expense Profit
542 APPENDIX C MANAGEMENT CONTROL FORMS Price Comparison Sheet Unit Name: Vendors Category: A. Date Bid: B. C. Last Item Best Best Price Description Unit A B C Bid $ Company Paid Reviewed By:
Appendix C Management Control Forms 543 Product Specification Unit Name: Product Name: Spec #: Pricing Unit: Standard/Grade: Weight Range: Packaging: Container Size: Intended Use: Other Information: Product Yield:
Sales Prior-Day New Total Number CarryMenu Item Forecast Carryover Production Available Sold over 1. 2. 3. 4 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Production Schedule Unit Name: Date: Special Instructions: Production Manager: 544
Quantity Item Purchased Spec # Ordered Quoted Price Extended Price 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Total Purchase Order Unit Name: Vendor: Purchase Order #: Vendor’s Address: Delivery Date: Vendor’s Telephone #: Vendor’s Fax #: Vendor’s E-Mail: Order Date: Comments: Ordered By: Received By: Delivery Instructions: 545
Unit Number Total Supplier Invoice # Item Price of Units Cost A B C D E Total Units Total Cost Receiving Report Unit Name: Date: Distribution Distribution Key: Comments: A. D. B. E. C.
Appendix C Management Control Forms 547 Number Product of Empties Bottle Size Bartender Management $ $ $ % Total Empties Requisition—Liquor Unit Name: Shift: Date: Service Area: Verified by Management
548 APPENDIX C MANAGEMENT CONTROL FORMS Storage Requested Issued Item Unit Amount Amount Unit Cost Total Cost $ $ $ % Total Requisition—Storeroom Unit Name: Requisition #: Date: To: Kitchen Requisition Approved By: To: Bar Requisition Filled By:
Beginning Ending Total Unit Total Item Category Amount Additions Amount Usage Cost Cost $ $ $ % Total Product Cost Salad Bar or Buffet Product Usage Unit Name: Date: Total Product Cost: Guests Served: Cost per Guest: 549
Predicted Number Menu Item Guest Forecast Popularity Index to Be Sold $ $ $ % Total Sales Forecast—Menu Items Unit Name: 550
Average % % Guest Sales per Last Increase Sales Last Increase Count Guest Month Year Estimate Forecast Year Estimate Forecast Forecast January February March Total Sales Forecast—Quarterly Unit Name: Total Sales Guest Counts Average % % Guest Sales per Last Increase Sales Last Increase Count Guest Month Year Estimate Forecast Year Estimate Forecast Forecast April May June Total Total Sales Guest Counts Average % % Guest Sales per Last Increase Sales Last Increase Count Guest Month Year Estimate Forecast Year Estimate Forecast Forecast July August September Total Total Sales Guest Counts 551
552 APPENDIX C MANAGEMENT CONTROL FORMS Average % % Guest Sales per Last Increase Sales Last Increase Count Guest Month Year Estimate Forecast Year Estimate Forecast Forecast October November December Total Total Sales Guest Counts
Appendix C Management Control Forms 553 Average Sales Sales Period Date Sales Guest Served per Guest Monday Tuesday Wednesday Thursday Friday Saturday Sunday Week’s Total Sales History—Average Sales per Guest Unit Name: Average Sales Sales Period Date Sales Guest Served per Guest Monday Tuesday Wednesday Thursday Friday Saturday Sunday Week’s Total
554 APPENDIX C MANAGEMENT CONTROL FORMS Serving Period Mon Tues Wed Thurs Fri Sat Sun Total Sales History—Daily Guests Unit Name: Guests Served Serving Period Mon Tues Wed Thurs Fri Sat Sun Total Guests Served
Appendix C Management Control Forms 555 Week’s Menu Item Mon Tues Wed Thurs Fri Total Average Sales History—Menu Items Unit Name: Date:
Sales This Percentage Month Year Sales Last Year Variance Variance January February March Total Sales History—Quarterly Variance Unit Name: Sales This Percentage Month Year Sales Last Year Variance Variance April May June Total Sales This Percentage Month Year Sales Last Year Variance Variance July August September Total Sales This Percentage Month Year Sales Last Year Variance Variance October November December Total
Appendix C Management Control Forms 557 Date 1–7 2–8 3–9 4–10 5–11 6–12 7–13 8–14 — — — — — — — Total Seven-Day Rolling Average Sales History—Seven-Day Rolling Average Unit Name: Seven-Day Period
558 APPENDIX C MANAGEMENT CONTROL FORMS Item Number Sold Selling Price Total Sales $ $ $ % Total Sales History—Total Sales Record Unit Name: Date:
Appendix C Management Control Forms 559 Sales Period Date Daily Sales Sales to Date Monday Tuesday Wednesday Thursday Friday Saturday Sunday Week’s Total Sales History—Weekly Sales Unit Name: Sales Period Date Daily Sales Sales to Date Monday Tuesday Wednesday Thursday Friday Saturday Sunday Week’s Total
560 APPENDIX C MANAGEMENT CONTROL FORMS Number Item Total Selling Total Food Item Sold Cost Food Cost Price Sales Cost % $ $ $ % Total Sales Mix Data Unit Name: Total Sales: Guests Served: Total Food Cost: Food Cost %:
Sales Receipt Report Unit Name: Performed By: Date: Cashier: Shift: Supervisor: Revenue per Guest Checks Guest check totals Service charges Tax Total guest check revenue Receipts Charge cards VISA MasterCard Discover American Express Total charge cards receipts Cash Twenties and larger Tens Five Ones Change Total cash Less: Bank Less: Tip-outs Net cash receipts Net total receipts Variance check revenue to net receipts 561
562 APPENDIX C MANAGEMENT CONTROL FORMS Weekday Today To Date Today To Date Today To Date $ $ $ % Six-Column Form Unit Name: Date:
Appendix C Management Control Forms 563 Number of Guests Anticipated Number of Employees Needed $ $ $ % Staffing Guide Unit Name: Date:
564 APPENDIX C MANAGEMENT CONTROL FORMS Ingredients Amount Method $ $ $ % Standardized Recipe Unit Name: Menu Item: Special Instructions: Recipe Yield: Portion Size: Portion Cost:
Appendix C Management Control Forms 565 Total New Original % of Amount % of Recipe Ingredient Amount Ounces Total Required Total Amount $ $ $ % Total Standardized Recipe Adjustment Unit Name: Date:
566 APPENDIX C MANAGEMENT CONTROL FORMS Item Amount Unit Cost Total Cost $ $ $ % Total Cost Standardized Recipe Cost Sheet Unit Name: Menu Item: Recipe Number: Special Notes: Recipe Yield: Portion Size: Portion Cost: Ingredients Ingredient Cost Total Recipe Cost: Recipe Type: Portion Cost: Date Costed: Previous Portion Cost: Previous Date Costed:
Appendix C Management Control Forms 567 To From Issued Received Date Item Quantity Department Department By By $ $ $ % Total Product Value Transfer Record Unit Name: Date: Product Value
568 APPENDIX C MANAGEMENT CONTROL FORMS Number of Product Vintage Bottles Guest Check # Removed By 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Wine Cellar Issues Unit Name: Date: Remarks:
Sparkling Wine and Champagne $ per Glass/$ per Bottle 101 102 103 104 105 Chardonnay 201 202 203 204 205 Other White Wines 206 207 208 209 210 Cabernet Sauvignon 301 302 303 304 305 Merlot 306 307 308 309 Pinot Noir 310 311 312 313 Wine List Unit Name: 569
Appendix D Fun on the Web! Sites Chapter 1—Managing Revenue and Expense www.restaurant.org Chapter 2—Determining Sales Forecasts www.micros.com www.datatrakpos.com www.squirrelsystems.com Chapter 3—Managing the Cost of Food www.produceonline.com www.thomasregister.com www.namp.com www.externalharddrive.com www.seafood.com www.usda.com Chapter 4—Managing the Cost of Beverages Do a Web search! Search for “Alcoholic Beverage Commission” to find regulations on the sale and service of alcohol. When you get a list of sites, just pick a state. Yours might be one of them! (Recommended search engine—MSN) www.beerweek.com www.winespectator.com www.alestreetnews.com www.wineculture.com www.beeerhistory.com www.wino.net www.allaboutbeer.com www.vine2wine.com www.celebrator.com www.cocktails.about.com www.wine.com www.food.epicurious.com 571
572 APPENDIX D FUN ON THE WEB! SITES If you are 21 or over, you can explore numerous sites developed by liquor companies. Go to the MSN search engine and click on “Liquor & Spirits.” From there, you will be launched into a world of spirits companies. Chapter 5—Managing the Food and Beverage Production Process www.computrition.com www.restaurantplus.com www.cbord.com www.foodtrak.com www.foodsoftware.com www.chefdesk.com Chapter 6—Managing Food and Beverage Pricing www.zagat.com Chapter 7—Managing the Cost of Labor www.alohapos.com www.symbioticsys.com www.foodsoftware.com www.dol.gov Chapter 8—Controlling Other Expenses www.epa.gov/smallbiz www.dinegreen.com www.cygnus-group.com Chapter 9—Analyzing Results Using the Income Statement www.restaurant.org www.clubnet.com www.ei-ahma.org Chapter 10—Planning for Profit Search these sites using key words such as food and beverage, cost control, hospitality accounting, and menu engineering to find resources to add to your book collection. www.amazon.com www.barnesandnoble.com www.borders.com
Chapter 12—Using Technology to Enhance Control Systems 573 Chapter 11—Maintaining and Improving the Revenue Control System www.totalmerchant-ca.com www.visa.com www.novusnet.com www.treas.gov/usss www.americanexpress.com Chapter 12—Using Technology to Enhance Control Systems www.micros.com www.restaurant.org www.squirrelsystems.com www.ahma.com www.datatrakpos.com www.eatright.com www.computrition.com www.dmaonline.org www.cbord.com www.acfchefs.org www.foodsoftware.com www.cmaa.org www.restaurantplus.com www.asfsa.org www.foodtrak.com www.ienace.org www.alohapos.com www.iaha.org www.symbioticsys.com www.ih-ra.com
575 Glossary Acceptance hours. The hours of the day in which an operation is willing to accept food and beverage deliveries. Accounting period. A period of time, that is, hour, day, week, or month, in which an operator wishes to analyze revenue and expenses. Accounts receivable. The term used to refer to guest charges that have been billed to the guest but not yet collected. Alcoholic beverages. Those products that are meant for consumption as a beverage and that contain a significant amount of ethyl alcohol. They are classified as beer, wine, or spirits. Ap required. As purchased amount necessary to yield the desired EP weight. AP required is computed as EP required divided by yield percentage. As needed. A system of determining the purchase point by using sales forecasts and standardized recipes to decide how much of an item to place in inventory. As purchased (AP). This term refers to the weight or count of a product as delivered to the foodservice operator. Attainable food cost. That cost of goods consumed figure that should be achievable given the product sales mix of a particular operation. Auditors. Those individuals responsible for reviewing and evaluating proper operational procedures. Average. The value arrived at by adding the quantities in a series and dividing the sum of the quantities by the number of items in the series. Average sales per guest. the mean amount of money spent per customer during a given financial accounting period. Often referred to as check average. Back of the house. The kitchen production area of a foodservice establishment. Beer. A fermented beverage made from grain and flavored with hops. Beginning inventory. The dollar value of all products on hand at the beginning of the accounting period. This amount is determined by completing a physical inventory. Best price. The lowest price that meets the requirement of both the foodservice operation and its vendor. Beverage costs. The costs related to the sale of alcoholic beverages. Bid sheet. A form used to compare prices among many vendors in order to select the best prices. Bin card. An index card with both additions to and deletions from inventory of a given product. To facilitate its use, the card is usually affixed to the shelf that holds the given item. Used in a perpetual inventory system. Bonding. Purchasing an insurance policy to protect the operation in case of employee theft.
Break-even point. The point at which operational expenses are exactly equal to sales revenue. Broken case. A case of beverage products in which several different brands or products make up the contents of the case. Budget. A forecast or estimate of projected revenue, expense, and profit for a defined accounting period. Often referred to as plan. Bundling. The practice of selecting specific menu items and pricing them as a group, in such a manner that the single menu price of the group is lower than if the items comprising the group were purchased individually. Call-in. A system whereby employees who are off duty are required to check in with management on a daily basis to see if the volume is such that they may be needed. Call liquors. Those spirits that are requested (called for) by a particular brand name. Carryover. A menu item prepared for sale during a meal period but carried over for use in a different meal period. Category food cost percentage. A food cost percentage computed on a portion of total food usage. Categories include meat, seafood, dairy, produce, etc. Check average. See Average sales per guest. Cherry picker. A customer who buys only those items from a supplier that are the lowest in price among the supplier’s competition. COLA. Cost of living adjustment. A term to describe a raise in employee pay. Comp. Short for the word complimentary, which refers to the practice of management giving a product to a guest without a charge. This can be done for a special customer or as a way of making amends for an operational error. Contract price. A price mutually agreed upon by supplier and operator. This price is the amount to be paid for a product or products over a prescribed period of time. Contribution margin. The profit or margin that remains after product cost is subtracted from an item’s selling price. Contribution margin for overall operation. The dollar amount that contributes to covering fixed costs and providing for a profit. Contribution margin income statement. A financial summary that shows P&L items in terms of sales, variable costs, contribution margin, fixed costs, and profit. Contribution margin per menu item. The amount that remains after the product cost of the menu item is subtracted from the item’s selling price. Controllable expense. An expense in which the decisions made by the foodservice manager can have the effect of either increasing or reducing the expense. Cost. See Expense. Cost accounting. See Managerial accounting. Cost of food consumed. The actual dollar value of all food used, or consumed, by the operation. 576 GLOSSARY
Cost of food sold. The dollar amount of all food actually sold, thrown away, wasted, or stolen plus or minus transfers from other units, minus employee meals. Cost per guest. A method of analyzing costs that uses the total expense and total number of guests served to establish an actual cost of servicing each guest. Count. Term used to designate size. Credit memo. An addendum to the vendor’s delivery slip (invoice) that reconciles differences between the delivery slip and the purchase order. Cycle menu. A menu that is in effect for a predetermined length of time such as 7 days or 14 days. Daily inventory sheet. A form that lists the items in storage, the unit of purchase, and the par value. It also contains the following columns: on hand, special order, and order amount. Daily menu. A menu that changes every day. Desired profit. The profit that an owner seeks to achieve on a predicted quantity of revenue. Draft beer. The term used to identify beer products sold in a keg. Dramshop laws. The term used to describe a series of legislative acts that, under certain conditions, holds businesses and, in some cases, individuals, personally responsible for the actions of guests who consume excessive amounts of alcoholic beverages. These “laws” shift the liability for acts committed by an individual under the influence of alcohol from that individual to the server or operation that supplied the intoxicating beverage. Edible portion (EP). This term refers to the weight or count of a product after it has been trimmed, cooked, and portioned. Embezzlement. The term used to describe theft of a type where the money, although legally possessed by the embezzler, is diverted to the embezzler by his or her fraudulent action. Ending inventory. The dollar value of all products on hand at the end of the accounting period. This amount is determined by completing a physical inventory. Ethics. The choices of proper conduct made by an individual in his or her relationships with others. Expense. The price paid to obtain the items required to operate the business. Often referred to as cost. Extended price. The price per unit multiplied by the number of units. This refers to a total unit price on a delivery slip or invoice. FIFO. With the first-in, first-out method of storage, the operator intends to sell his or her oldest product before selling the most recently delivered product. Fiscal year. Start and stop dates for a 365-day accounting period. This period need not begin in January and end in December. Fixed average. The average amount of sales or volume over a specific series or time period, for example, first month of the year or second week of the second month. Glossary 577
Fixed expense. An expense that remains constant despite increases or decreases in sales volume. Fixed payroll. Those dollars spent on employees such as managers, receiving clerks, and dietitians whose presence is not generally directly dependent on the number of guests served. Food cost percentage. The portion of food sales that was spent on food expenses. Food costs. The dollar costs associated with actually producing the menu item(s) a guest selects. Forecasting. The process of estimating future revenue or expenses of a hospitality operation. Franchiser. The entity responsible for selling and maintaining control over the franchise name. (Alternative spelling: franchisor.) Free-pouring. Pouring liquor from a bottle without measuring the poured amount. Fresh dated. A food package upon which a date is stamped to indicate the freshness of its contents. Goal value analysis. A menu pricing and analysis system that compares goals of the foodservice operation to performance of individual menu items. Goods available for sale. The sum of the beginning inventory and purchases. It represents the value of all food that was available for sale during the accounting period. Guest check. A written record of what was purchased by the guest and how much the guest was charged for the item(s). Guest count. The number of individuals served in a defined time period. Half-bottle. A bottle of wine that is approximately one-half the size of the standard 750-ml wine bottle. Typically sold for either room service or dining room consumption. Also known as a split. Hardware. The machines and equipment used to operate computer software. Head size. The amount of space on the top of a glass of beer that is made up of foam. Thus, a glass of beer with 1 inch of foam on its top is said to have a 1-inch head. House wine. The term used to indicate the type of wine to be served in the event a specific brand name product is not requested by the guest. Hydrometer. An instrument used to measure the specific gravity of a liquid. Ideal expense. Management’s view of the correct or appropriate amount of expense necessary to generate a given quantity of sales. Income. Net income. See Profit. Income statement. See Profit and loss statement (P&L). Ingredient room. A storeroom or section of a storeroom where ingredients are weighed and measured according to standardized recipes, and then delivered to the appropriate kitchen production area. Inventory turnover. The number of times the total value of inventory has been purchased and replaced in an accounting period. 578 GLOSSARY
Issuing. The process of supplying food or beverage products from storage by management for use in an operation. Jigger. A bar device used to measure predetermined quantities of alcoholic beverages. Jiggers usually are marked in ounces and portions of an ounce, for example, 1 ounce or 11 ⁄2 ounces. Job description. A listing of the tasks to be performed in a particular position. Job specification. A listing of the personal skills and characteristics needed to perform those tasks pertaining to a particular job description. Labor costs. See Labor expense. Labor expense. All expenses (costs), including payroll, required to maintain a work force in a foodservice operation. LIFO. With the last-in, first-out method of storage, the operator intends to sell his or her most recently delivered product before selling the older product. Loss leader. A menu item that is priced very low for the purpose of drawing large numbers of customers to the operation. Managerial accounting. The process of documenting and analyzing sales, expenses, and profits. Sometimes referred to as cost accounting. Minimum order requirement. The smallest order, usually expressed in dollar value, that can be placed with a vendor who delivers. Minimum sales point (MSP). The dollar sales volume required to justify staying open. Minimum staff. The term used to designate the least number of employees, or payroll dollars, required to operate a facility or department within the facility. Mixed expense. An expense that has properties of both a fixed and a variable expense. Negligent hiring. Failure on the part of an employer to exercise reasonable care in the selection of employees. Net income. The profit realized after all expenses and appropriate taxes for a business have been paid. Noncontrollable expense. An expense that the foodservice manager can neither increase nor decrease. Occupancy costs. Expenses related to occupying and paying for the physical facility that houses the foodservice unit. OJT. On-the-job training. A method of training in which workers are training while they actually are performing their required tasks. On-call. A system whereby selected employees who are off duty can be contacted by management on short notice to cover for other employees who are absent or to come to work if customer demand suddenly increases. Open bar. A bar in which no charge for an individual drink is made to the customer, thus establishing an all-you-can-drink environment. Sometimes referred to as a hotel bar. Opportunity cost. The cost of foregoing the next best alternative when making a decision. For example, with two choices, A & B, both having potential benefits or returns, if A is chosen, then the potential benefits from choosing B are lost. Glossary 579
Other expenses. The expenses of an operation that are neither food, beverage, nor labor. Oxidation. A process that occurs when oxygen comes in contact with bottled wine, resulting in a deterioration of the wine product. Padded inventory. The term used to describe the inappropriate activity of adding a value for nonexisting inventory items to the value of total inventory in an effort to understate actual costs. Par level. A system of determining the purchase point by using managementestablished minimum and maximum allowable inventory levels for a given inventory item. Payroll. Total wages and salaries paid by a foodservice operation to its employees. Percent. The number “out of each hundred.” Thus, 10 percent means 10 out of each 100. This is computed by dividing the part by the whole. Percent selecting. A formula for determining the proportion of people who will buy a given menu item from a list of menu choices. Percentage variance. The change in sales, expressed as a percentage, that results from comparing two operating periods. Perpetual inventory. An inventory control system in which additions to and deletions from total inventory are noted as they occur. Perpetual inventory card. A bin card that includes the product’s price at the top of the card, allowing for continual tracking of the quantity of an item on hand and its price. Physical inventory. An inventory control system in which an actual or physical count and valuation of all inventory on hand is taken at the close of each accounting period. Plan. See Budget. Point of sales (POS) system. A system for controlling hospitality operations’ cash and product usage by using a computer processor and, depending on the size of the operation, additional computer hardware, communication devices, and/or software. Popularity index. The percentage of total guests choosing a given menu item from a list of menu alternatives. Predicted number to be sold. A method of determining the number of a given menu item that is likely to be sold if the total number of customers to be served is known. Premium liquors. Expensive call liquors. Price blending. The process of assigning prices based on product groups for the purpose of achieving predetermined cost objectives. Price spread. The difference in price on a menu between the lowest and highest priced item of a similar nature. Productivity. The amount of work performed by a worker in a set amount of time. Productivity ratio. This formula refers to the total unit output divided by the total unit input. 580 GLOSSARY
Productivity standard. Management’s expectation of the productivity ratio of each employee. Also, management’s view of what constitutes the appropriate productivity ratio in a given foodservice unit or units. Product mix. See Sales mix. Product specification. A detailed description of an ingredient or menu item. Profit. The dollars that remain after all expenses have been paid. Often referred to as net income. Profit and loss statement (P&L). A detailed listing of revenue and expenses for a given accounting period. Also referred to as an income statement. Projected sales. Sales that may be determined by either dollar sales or customer count. Projected sales are established by using sales histories and other knowledge the operator may have that could impact total volume. They are predictions of future sales volume. Pull date. Expiration date on beverage products, usually beers, after which they should not be sold. Purchase order. A listing of products requested by the purchasing agent. The purchase order, or PO, lists various product information, including quantity ordered and price quoted by the vendor. Purchase point. The point in time when an item held in inventory reaches a level that indicates it should be reordered. Purchases. The sum cost of all food purchased during the accounting period. Determined by adding all properly tabulated invoices for the accounting period. Quick-change artist. A guest who, having practiced the routine many times, attempts to confuse the cashier; in his or her confusion, the cashier gives the guest too much change. Recipe ready. A recipe ingredient that is cleaned, trimmed, cooked, and generally completed, save for its addition to the recipe. Refusal hours. Those hours of the day in which an operation refuses to accept food and beverage deliveries. Reporting period. The process of reporting a time period for which records are being maintained. This may be of the same duration as an accounting period. Requisition. When a food or beverage product is requested from storage by an employee for use in an operation. Return on sales (ROS). Often referred to as operating profit percentage. ROS can also be stated in whole dollar terms. Revenue. The term used to indicate the dollars taken in by the business in a defined period of time. Often referred to as sales. Rolling average. The average amount of sales or volume over a changing time period, for example, the last ten days or the last three weeks. Safety stock. These are additions to par stock, held as a hedge against the possibility of extra demand for a given product. This helps reduce the risk of being out of stock on a given item. Glossary 581
Salaried employee. An employee who receives the same income per week or month regardless of the number of hours worked. Sales. See Revenue. Sales forecast. A prediction of the number of guests to be served and the revenues they will generate in a defined, future time period. Sales history. A record of sales achieved by an operator in a given sales outlet during a specifically identified time period. Sales mix. The series of consumer purchasing decisions that result in a specific food and beverage cost percentage. Sales mix affects overall product cost percentage any time menu items have varying food and beverage cost percentages. Sales to date. The cumulative sales figures reported during a given financial accounting period. Sales variance. An increase or decrease from previously experienced or predicted sales levels. Sales volume. The number of units sold. Separated. The term used to describe employees who have either quit, been terminated, or in some other manner have left their place of employment. Shelf life. The period of time an ingredient or menu item maintains its freshness, flavor, and quality. Shorting. When the vendor is unable to deliver the quantity of item ordered for the appointed delivery date. Skip. See Walk. Software. The set of instructions that control the workings of computer hardware and direct the processing of data. SOP. Acronym for standard operating procedure. Source reduction. Working with food manufacturers and wholesalers to reduce product packaging waste. Spec. See Product specification. Spirits. Fermented beverages that are distilled to increase the alcohol content of the product. Split. See Half-bottle. Split shift. A scheduling technique used to match individual employee work shifts with the peaks and valleys of customer demand. Spotter. An individual employed by management for the purpose of inconspicuously observing bartenders and waitstaff in order to detect any fraudulent or policy violating behavior. Standard cost. The labor cost needed to meet established productivity standards. Standardized recipe. The procedures to be used for consistently preparing and serving a given menu item. Standardized recipe cost sheet. A record of the ingredient costs required to produce an item sold by a foodservice operation. 582 GLOSSARY
Standard menu. A printed and otherwise fixed menu that stays the same day after day. Task training. The training undertaken to ensure an employee has the skills to meet productivity goals. Two-key system. A system to control access to storage areas. Uniform systems of accounts. Standardized sets of procedures used for categorizing revenue and expense in a defined industry, for example, uniform system of accounts for restaurants (USAR). Value pricing. The practice of reducing all or most prices on the menu in the belief that total guest counts will increase to the point that total sales revenue also increases. Variable expense. An expense that generally increases as sales volume increases and decreases as sales volume decreases. Variable payroll. Those dollars expended on employees whose presence is directly dependent on the number of guests served. These employees include servers, bartenders, and dishwashers, for example. As the number of guests served increases, the number of these individuals required to do the job also increases. As the number of guests served decreases, variable payroll should decrease. Vintage. The specific year(s) of production for a wine. Vintner. Wine producer. Walk. A term used to describe a customer who has consumed a product, but leaves the foodservice operation without paying the bill. Also known as a skip. Waste percentage. This formula is defined as product loss divided by AP weight and refers to product lost in the preparation process. Weighted average. An average that combines data on the number of guests served and how much each has spent during a given financial accounting period. Well liquors. Those spirits that are served by an operation when the customer does not specify a particular brand name. Wine. A fermented beverage made from grapes, fruits, or berries. Wine list. A menu of wine offerings. Working stock. The quantity of goods from inventory reasonably expected to be used between deliveries. Yield percentage. This formula is defined as 1 minus waste percentage and refers to the amount of product available for use by the operator after all preparation-related losses have been taken into account. Yield test. A procedure used to determine actual EP ingredient costs. It is used to help establish actual costs on a product that will experience weight or volume loss in preparation. Glossary 583
Bibliography Adams, Deborah. Management Accounting for the Hospitality Industry: A Strategic Approach. London: Cassell Academic, 1997. American Hotel and Motel Association. Uniform System of Accounts for the Lodging Industry. 9th ed. Orlando: Educational Institute of the American Hotel and Motel Association, 1996. Chaban, Joel. Practical Foodservice Spreadsheets With Lotus 1-2-3. New York: John Wiley & Sons, 1997. Club Managers Association of America (Editor). Uniform System of Financial Reporting for Clubs. Dubuque, IA: Kendall/Hunt Publishing, 1996. Coltman, Michael M., and Martin G. Jagels. Hospitality Management Accounting. 7th ed. New York: John Wiley & Sons, 2000. Defranco, Agnes L., and Pender B. M. Noriega. Cost Control in the Hospitality Industry. Upper Saddle River, NJ: Prentice Hall, 1999. Deloitte & Touche, LLP. Uniform System of Accounts for Restaurants. 7th ed. Washington, DC: National Restaurant Association, 1996. Dittmer, Paul R., and Gerald G. Griffin. Principles of Food, Beverage, and Labor Cost Controls for Hotels and Restaurants. 6th ed. New York: John Wiley & Sons, 1999. Drysdale, John A. Profitable Menu Planning. Upper Saddle River, NJ: Prentice Hall, 1997. Foster, Dennis L. Food and Beverage: Operations, Methods, and Cost Controls. New York: Glencoe/McGraw–Hill, 1994. Gisslen, Wayne. Advanced Professional Cooking. New York: John Wiley & Sons, 1992. Gisslen, Wayne. Professional Cooking. 4th ed. New York: John Wiley & Sons, 1999. Haines, Robert. Math Principles for Food Service Occupations. Albany: Delmar Publishing, 1995. Harris, Peter. Managerial Accounting in the Hospitality Industry. Cheltenham, UK: Stanley Thornes Publications, 1992. Hug, Richard J., and Marshall C. Warfel. Menu Planning and Merchandising. 2d ed. Berkeley, CA: McCutchan Publishing, 1997. Katsigris, Costas, and Mary Porter. The Bar and Beverage Book: Basics of Profitable Management. New York: John Wiley & Sons, 1991. Keiser, James, and Frederick J. Demicco. Controlling and Analyzing Costs in Foodservice Operations. Indianapolis: MacMillan Publishing, 1993. Keister, Douglas C. Food and Beverage Control. Upper Saddle River, NJ: Prentice Hall, 1996. 584
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587 Index ABC inventory control, 192–200, 513 Acceptable variance, production management, 223–224 Acceptance hours, delivery schedules, 94 Accounts receivable, revenue control system, 462 Achievement budget, 422 Actual costs, production management, 213–220 Actual food expense determination, 116–127 beginning inventory, 117 cost of food consumed, 118 cost of food sold, 118 employee meals, 118 ending inventory, 118 estimating daily costs, 123–127 food cost percentage, 122 goods available for sale, 117 purchases, 117 recap sheet for, 119 variations on formula, 118–122 Administrative expenses, management of, 343 Aggregate statement, income statement analysis, 371 Alcoholic beverage management, see Beverage management Ambiance, menu pricing factors, 248 Annual budget, 421–422 Applications, employee selection, 281 As-needed purchase point (just in time), inventory control, 69 As-purchased (AP) state, food product specification, 76–78 Attainable costs, production management, 213, 220–224, 514 Auditors, 90, 92 Average sales per guest (check average), sales history, 36 Averages computation, for sales history, 32–34 Averages sales per guest, future sales prediction, 46–48 Background checks, employee selection, 284–285 Back of the house, defined, 200 Banquet/event order/invoice, 515 Banquet operations, beverage production management, 210 Bar transfers, alcoholic beverage management, 163–165 Beer. See also Beverage management classification, 138 purchasing, 148–150 sales, forecasting, 139–141 storage, 160 Beginning inventory, actual food expense determination, 117 Best price, defined, 78. See also Price(s) Beverage consumption report, 516 Beverage gun, beverage production management, 207 Beverage management, 135–176 bar transfers, 163–165 beverage and entertainment/activity, 137–138 beverage and food, 136–137 beverage only, 136 classification of beverage, 138 costs: computation of, 165–166 profit, 7 forecasting, 139–144 beer sales, 139–141 spirit sales, 142–144 wine sales, 141–142 formulas for, 506 income statement analysis, 381–383 inventory, 166–169 count, 168 measure, 168–169 weight, 167 other expenses category, 339–343, 356–357 price management: bottled wine, 261–263 receptions and parties, 264–266 production management, 183–186 product request log, 517 purchasing, 148–157 beer products, 148–150 purchase order, 157 spirit products, 154–157 wine products, 150–154 receiving, 157–159 responsibility, 138–139 revenue control system, 454 sales mix, 169–172 software for, 477 standardized recipes and portions, 144–147 storage, 159–162 beer, 160 spirits, 160 wine, 161–162 websites for, 571–572 Beverage production management, 206–212. See also Production management Bid card, 519 Bid sheet, 79, 80, 518 Bin card, inventory control, 192 Bonding, revenue control system, 452 Bottled wine: price management, 261–263 sales forecasting, 141 Bottle sales, beverage production management, 209 Box cutters, food receiving, 93 Brand selection, beer purchasing, 148 Break-even point, cost/volume/profit analysis, 412 Breaks, workforce maintenance, 294–295 Broken case, alcoholic beverage management, 157 Budgeted labor, payroll costs, 329 Budgets, 17–22, 419–434 development of, 422–425 next-period operations assumptions, 423–424 operating goals, 424–425 prior-period operating results, 422–423 monitoring of, 425–434 expense analysis, 428–433 profit analysis, 433–434 revenue analysis, 425–428 types of: achievement, 422 annual, 421–422 long-range, 421 Buffets: price management, 259–261 product usage form, 549 Bundling, price management, 259 Butcher’s yield test form, 519 Calculator, food receiving, 94 Call-in system, payroll costs management, 326 Call liquors, purchasing, 155–156 Carryover utilization, production management, food area, 204–205 Carts, food receiving, 93 Cashier theft, 450–452