Htm 2030 Midterm 2 Flashcards
Goal of controlling production volume
To determine and produce the number of portions that is likely to be sold on a given day / period of service
Controlling production volume steps
- Analyze sales history
- Forecast portion sales
- Determine production quantity
Data mining
Pulling useful information out of a large quantity of data, revealing patterns and preferences from the sales history
Popularity Index
The ratio of portion sales for a given menu item to the total portion sales
When the popularity index is calculated for a single period it is?
Sales mix or Menu mix
The popularity ratio is more valuable at determining an item’s popularity than the
Raw number of portions sold
Forecasting portion sales
A process that combines both data and intuition to predict what will happen in the future
Steps in forecasting portion sales
- Predict anticipated sales volume
- Include surround conditions
- Forecast sales for each menu item
- Be flexible
- Have forecast reviewed
Predict anticipated sales volume
Total customer anticipated for a day / Period of service
The difference between planned versus actual
Variance
Inventory is typically done
Monthly
Cost of Food Issued =
Opening inventory + Purchases - Closing Inventory
Five ways to assign value to units of inventory
- Actual purchase price method
- First-in, first-out method
- Weighted-average purchase price method
- Latest purchase price method
- Last-in, first-out method
Actual purchase price method
- Human error messes this up
- Can be done if the prices are somehow recorded on items
First-in, first-out method
- Prof thinks this is the best, but second most used
- Assumes food inventory has been properly rotated during the period
Weighted-average purchase price method
- Single unit value is determined by finding an average value representing all units in inventory, combining purchase price and volume
Latest purchase price method
- Uses the latest price paid
- Easy, fast, and widely accepted
Last-in, first-out method
- A method that could be used if managers wanted to show higher costs
Last-in, first-out method
- A method that could be used if managers wanted to show higher costs
Steward sales
Minus
- Employees who purchase food at cost through the operation
Gratis to bars
Minus
- Non-revenue generating food produced to promote beverage sales
Promotion expense
Minus
- Reduction in cost of food because sales revenues are unaffected
What do you add to get cost of food consumed?
- Cooking liquor
- Transfers in from other units
What do you minus to get cost of food consumed?
- Food to bar
- Transfers out to other units
- Steward sales
- Gratis to bar
- Promotion Expense
Cost of food sold =
Cost of food consumed - cost of employee meals
Average inventory held =
Opening inv + Closing inv / 2
Inventory turnover =
Cost of food sold / Average Inventory
Order of Costs
- Cost of food issued
- Cost of food consumed
- Cost of food sold
Daily cost of food issued =
Daily cost of food directs + Daily cost of food stores
Daily cost of food consumed =
Daily cost of food issued +/- Daily adjustments
Daily cost of food sold =
Daily cost of food consumed - Daily employee meals
Daily food cost % =
Daily food costs / Daily food revenue
Food Cost % ToDate =
Food Costs ToDate / Food revenue todate
Goal of daily food costs and variance
To highlight and investigate why changes have occurred and to be able to make any necessary corrections to reach goals
Forecast (pre-cost)
Sales projections calculated before the meal service period
Abstract (actual)
The actual sales outcome after a meal service period
Who developed the menu engineering worksheet
Kasavana and Smith
Q on the menu engineering worksheet
1/n * 70%
Star
Both profitable and popular
Plowhorses
Popular but unprofitable
- alter portion size, increase menu price, maintain volume
Puzzle
Profitable but unpopular
- Reposition item on menu, add popular ingredient to dish, feature as a special, improve appearance and/or description
Dogs
Both unpopular and unprofitable
