QUESTIONS & ANSWERS
: Chapter 01
Q. 1. What do you mean by Food
Cost? Write in detail the advantages of
Food Cost Control.
Answer : Food Cost is defined as the cost of raw
material used to prepare a dish. Food
Cost is one of the major costs of the Restaurant and there is always a risk of
food cost going high and low due to the negligence of the staff. If the food
cost goes high then the cost of sale will go high resulting in less gross
profit . On the other hand if the food cost is low then that means either the
guest is given a small portion or he is served sub standard quality of food.
Thus result will be subsequently losing permanent customers and hence will
reduce sale and profit. So by proper controlling the cost of food, we can
assure the profitability , permanent customer and increase in sale volume &
profit.
a.
Analysis of income and expenditure
of organization.
b.
Establishing and maintaining the standard of service of the
establishment.
c.
Pricing of menu
d.
Prevention of waste .
e.
Prevention of frauds .
f.
Prevention of theft and pilferage .
g.
Source of information for management reports .
Q. 2. Define food cost. Write in detail the limitations of food cost
control.
Answer : Food Cost
is defined as the cost of raw materials used to prepare a dish. Though it looks
very simple that is the standard Recipe and Portion Size Control is followed
then the food cost will be always under control but in reality cost may differ
. Some of the factors which affects the food Cost are :
1.
Fluctuation in Raw Material Cost:
2.
Wrong Purchasing of Raw Material:
3.
Reduction in Sale:
4.
Wastage during preparation of Food:
5.
Pilferage in Food Sale:
6.
Spoilage due to wrong storage:
Q. 3. Write in detail the
methodology and phases of cost controls.
Answer : There are
various methods and phase at which Cost Control is done . Some of those are as
follows :
(i)
Purchasing : Purchasing department must ensure that right quality of food at
competitive price and right quality is procured.
(ii) Receiving & Storing of raw
materials : Proper control is essential while receiving
the raw materials . The raw materials received by stores must be inspected for
the quality and quantity desired . The storekeeper must ensure that in store
there should be a place for everything and Everything is placed , so that no
food item should get spoiled.
(iii) Issuing : All goods should be issued after a proper
requisition . The rule of First In First Out
(F.I.F.O) must be followed.
(iv) Production / Wastage Control : The
wastage of all level either portioning , cooking , storing should be as minimum as possible .
(v) Storing of Cooked Food : In case any cooked food is left
at the end of the day then it must be stored at proper temperature so that it
can be used on the following day if required.
(vi) Control while serving Food : Ensure that no food is served
without proper KOT .If Food is allowed
to be picked up without proper KOT then this will increase the food cost .
(vii)
Portion Control : Both the large and smaller
portion is harmful to the hotel / restaurant . A large portion will increase
the food cost while small portion will dissatisfy the guest and may result in losing
them.
(viii)
Standard Recipe : The objective and advantage of Food Cost Control are to satisfy the
guest and make reasonable good profit at
all times. If Standard Recipe is not followed than the guest may not always
find similar standard of dish and this will dissatisfy them ,resulting in
permanent lose of customer and less sale & profit.
Q. 4. Write in detail the
essentials of cost control.
Answer : In the
Hotel industry Food Cost is the major portion of the total cost .So in order to
assure the profitability of the Hotel and sale more than Break Even Point Sale
, food Cost Control is very essential . Food Cost Control is essential for :
a)
Proper Purchasing
b) Control in Purchasing
c) In order to follow Purchasing
Procedure
d) To Control Food Production
e) In order to follow standard recipe
and Standard Portion Size
f) To know total production cost , thus
help in fixing the selling price
g)
To regular review of the production , Sale and operating results.
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