Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Food Service Management > Foodservice costs > Flashcards

Foodservice costs Flashcards

You may prefer our related Brainscape-certified flashcards:
Gourmet Food flashcards
1
Q

How is the budget organized financially?

A

government -> hospital -> department where the department submits projected budget.

spread evenly according to fluctuations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What does the department do if there is a budget cut?

A

they send in an impact statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a cost centre?

A

costs:
- responsible: department( manger +employee)
- not responsible: revenues or investment decisions
eg. hospital foodservice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the concept of revenue generating?

A

a process where a product or service is sold to produce income
eg. hospital cafeteria

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is auto financing?

A

to make enough profit to operate and invest in this operation
-without borrowing money or selling more shares

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the term out sourcing?

A

when a company employs another organisation to do work rather than using internal employees
-usually to get non-core expertise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is a contract fee?

A

the price, fee, rent or royalty payable in a contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are purchased services?

A

outsourced services to an external supplier (to get non-core expertise)
-equipment repairs, duct cleaning etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are some terms relating to budget?

A 
operating
development
capital
zero-based budgeting
impact statement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the difference between purchasing and outsourcing

A

outsourcing: buy a service, part of a process
purchasing: buy to start the process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the meaning of operating budget?

A

covers expenses required to deliver services (salaries, supplies, repairs, etc.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the development budget?

A

tool used to plant and track a specific project

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is meant by capital?

A

used for long term investments like infrastructure and facilities
-paid off over time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is a zero-based budgeting?

A

a budgeting process that allocates funding based on program efficiency and necessity rather than budget history

  • no items are automatically included in the next budget
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is an impact statement?

A

summarized an organization’s initiatives

answers the why (put in place), who (benefits) and what (benefits expected for community)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is SFS?

A

shared foodservices: used to service different types of institutions
eg. nursing home, school, daycare)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is a commissary?

A

a central kitchen serving many units with similar mission statement

18
Q

What is a kitchenless hospital?

A

a central kitchen

19
Q

What is a collective agreement?

A

a contract between the employer and the union outlining terms and conditions for employee

20
Q

What are some solutions to budget cuts?

A

increased technology & revenue

decreased quality and services/programs

21
Q

What are the major foodservice cost areas?

A

labour %:

  • hospitals” 62-68%
  • private cafs and university residents: 35-48% (more even)

food%:

  • hospitals: 25-27% (if proft and loss: 5%)
  • private caf and Uni res: 28-30%

Other %: varies…
university residence: 35% (more well rounded_)

*major difference: between food% for fee for service and profit & loss for contracted hospital (profit&loss cut on food% much lower)

22
Q

What are the major effects on labour%?

A
  • type of menu
  • unionized/not
  • variety in categories of worker

other:
- cook-chill vs. conventional system
- 7 day vs. 5 days production
- centralized vs. decentralized
- shift work vs. regular days
- amount of patient service
- economies of scale
- food and other costs

23
Q

What is meant by economies of scale?

A

savings proportionate to increased scale of production

24
Q

What are factors that influence food%?

A
  • degree specialty (eg. kosher)
  • proportion of food bought ready to serve (complete end of continuum)
  • overall quality/variety of food
  • amount of vending machine business
  • labour and other costs
25
Q

What are some factors that affect other%?

A
  • cleaning and sanitation supplies
  • paper products
  • disposable plates and utensils
  • printing and photocopying
  • laundry
  • travel, conferences..etc.

can include:

  • lighting, heating, telephone
  • rent
  • contract fee
  • consultant services
  • self/auto financing payments
  • rental of office equipments
  • vending machine maintenance
26
Q

What is the trend for the changing ratios/

A

due to the change in price, food prices increased therefore, all three percentages (food%, labour% and other% have changed as well)

27
Q

What are the most and least food cost %?

A

least: vending machines 25%
most: break-even establishments 51%

28
Q

What are the steps in the cost control cycle?

A
  1. purchasing
  2. receiving
  3. storage
  4. issuing
  5. pre-prep
  6. prep
  7. portioning
  8. transfer from kitchen to service
  9. order taking
  10. bank deposits
  11. accounts payable
29
Q

What are 10 cost control tools?

A
  1. food purchasing specs
  2. supplier price comparison reports
  3. standardised recipes
  4. costing records
  5. purchasing, receiving reports
    a) purchasing part
    b) receiving part
  6. inventory records
  7. sales mix analyses
  8. forecasting
  9. waste reports
30
Q

Identify what information is needed for the purchasing part of the purchasing as a cost control tool.

A 
purchaser's name (ordered by..)
date
product
units on hand
units needed
units ordered
check mark to confirm items that were ordered
31
Q

Identify what information is needed for the receiving part of the purchasing as a cost control tool.

A 
items received (check mark)
quality and weight checked and problems indicated
missing/sent back items indicated acknowledged by receiver and deliverer
32
Q

How are inventory records used to control food costs?

A

calculating food costs for the period
determining consistency of usage from period to period
comparing food costs between periods in dollars vs. percentages
comparing actual and theoretical food costs
determining product turnover

33
Q

How are sales mix analyses used to produce optimal foods, quantities and services?

A 
tracking trends
effective purchasing 
menu modifications/designs
evaluating existing pricing policies
evaluating service hours

date source: cash register report = popularity or poor performance of items

34
Q

What is forecasting for and how can we apply it?

A

to reduce and control costs via:
accurate purchasing, production of food and effective staff use

method:
1. previous week - calculate % difference between this year and last year
2. apply % difference to sales of upcoming week form last year
3. adjust according to new market factors, predicted weather, pay day, etc.

35
Q

How can waste reports be cost control tools?

A

decrease or prevent waste by:
studying food usage
documenting kitchen staff operations and decisions
identification of problems with purchasing, production, distribution, training, equipment…

include item, amount, reason and initials of responsible person

36
Q

Why are standard important?

A

set a minimum requirement/acceptance of performance

integral to cost control programs

37
Q

What are the 5 steps related to standard?

A
  1. establish standards of performance and results (individual and departments)
    eg. belt line waste documented at each meal = belt line waste will be no more than 5%
  2. insist that all individuals follow standard to prevent waste and inefficiency
  3. monitor adherence to standards as preventative control measure
  4. compare actual performance against standards
  5. take timely/appropriate action when deviated from standards are detected
38
Q

What are 7 limitations to cost control standards implementation?

A
  1. manufacturing operation, processing raw materials and combining into end product
  2. perishable product: stored for limited time
  3. products have to be made on demand
  4. variety of products have to be produced simultaneously on same production line
  5. items production change many times daily
  6. items produced, purchased and consumed at the same time
  7. service is part of the product

most of the quality control and cost control is don’t close to product consumption

39
Q

What is the point to which cost control is limited to? (once it is maximized)

A

only a management task

if at max. only way to increase “bottom line” is through revenue generation

40
Q

How can you measure how well you are doing? SOFI

A

food cost per meal: food cost per period/ # meals per period

labor cost per meal: labor cost per period/ # meals per period

other cost per meal: other cost per period/ #meals per period

total cost per meal: total cost per period/ #meals per period

meals produces per hour: total meals per period/ total hours worked per period

%participation rate: actual users/potential users *100

41
Q

State the cost per meals in $ ballpark figures.

A

for a regular self managed hospital foodservice:

labour cost = 67%
food cost = 27%
other cost= 6%

total=6.70-8.9

Food Service Management (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions