Lecture 11 Flashcards
What is macroeconomics?
Examines economy on a national and international level. Looks at:
- GDP
- How country allocates resources of land labour and capital
- International trade
- Inflation
- Interest rates
- Unemployment
What is micro economics?
Looks at individual and firms within the economy, it shows how individuals and firms respond to changes in prices and how prices affect demand of goods and services.
What is scarcity?
Tension between having limited resources in comparison to our wants and needs
-resources limited and people organizaitons and nations make decisions regarding what goods and services they buy or produce
What is the law of demand?
Quantity of a product or service desired by buyers
-quantity demanded is the amount to a product the people are willing to buy at a certain price
What is the movement of the demand curve based on?
The change in price
What is the law of supply?
Quantity the market can offer
- demonstrates quantities that will be sold at a certain price
- higher the price, higher the quantity supplied
What happens when the price of an item rises?
More producers will enter the market to profit therefore increases the supply, eventually as more producers enter the market the price will fall
How does the supply curve change?
By a change in price
What is equilibrium?
When supply and demand are equal
-amount being supplied is the same as the amount being demanded, point where allocation of goods is most efficient
When does a shift in the supply or demand curve happen?
When the quantity demanded or supplied changes happen
-with price remaining the same
If there is an increased demand for something what way does the curve shift?
Right
What are normal goods?
Product whose demand rises when income rises
What is an inferior good?
A product whose demand falls when income rises
-when income increases demand shifts left
What area some examples of when we would see a decrease in the supply curve?
Unfavourable growing conditions Strikes Labour shortages Distribution Problems Trade barriers Many other challenges
What is inflation?
Quantitative measure of the rate at which the average price level of a basket of select goods and series in an economy increases over time
-ours is 2.4%(low)
What does raw food include?
Therapeutic foods which are expensive, and are purchased under LTCA
What food is not purchased under the LTCA?
Alcohol
Food for non-residents
Special Events
Seasonal, Cultural, religious, ethnic celebrations
When can you charge a food cost to the PSS according to LTCA?
If the licensee can demonstrate that food used a scheduled recreation or social activity that meets the interest of the residents does not replace all or part of a meal
How do FS managers control raw food costs?
Purchase higher quantities (need storage though)
Purchase cheaper
Balance buying food in season vs perishable
Onetime food delivery
Producing in house
What are some managerial controls for costs in terms of food purchasing to prep?
Purchasing (purchasing groups)
Receiving (check order for losses)
Storage (store only essentials, inventory turn over ratio)
-risk of inventory too low or too high
Food production (standardized recipes)
Portion Size (costing and pricing)
Labour (Increasing relative too food costs, ratios for meals/labour/)
What are other managerial controls for costs not quire related to food?
Type of foodservice system Type and extent of series offered Physical plant size and equipment arrangement Employee productivity Supervision Operating expenses Maintenance and repair Breakage Supplies Food Costs
What is a budget?
Financial plan based on past records of income and expenses and business volume as well as projections
What area the attributes of budgets?
- Contributes an important component in achieving th organizations strategic direction
- Support community with managerial turnover
- Serves as a communication tool
- Ensure those developing the budget consider inflation cost of living increases and legislation
- Mechanism for establishing goals and objectives
- Good budgets have a degree of flexibility
- Good budgeting processes involve the team that is required to use the budget
What are the 7 kinds of budgets?
Master Operating Cash Capital Fixed Flexible Zero based
What is a master budget?
Usually a compilation of many budgets all within the same organization
What is an operating budget?
Includes revenues and expenses used in day to day operations of the department and is important when used as a control process
What is a cash budget?
Used to determine whether funds will be available at the appropriate time to meet the financial obligations of the organization
-identifies the amount of cash on hand at any point in time
what is a capital budget?
Long term plans for purchasing costly equipment, renovating or building
-often in dollar value
What is a fixed budget?
Dollar among is set based on past activities these budgets can be rigid and are often used in public institutions where money is tight and there are very limited opportunities to generate revenue
What is a flexible budget?
Dollar range is set allowing managers to spend more on resource if volumes increase, however it is more difficult to use as a control tool
What is a zero based budget?
Each fiscal year a budget is developed starting from 0
- managers must evaluate all activities and justify request for funds
- very time consuming
- helps evaluate all costs in food service operations
What are the steps in budgeting?
Evaluation: of past performance and identify factors that will likely affect budget
Preparation: use info from evaluation to forecast
Justification: Task of reviewing, revising and seeking approval
Implementation: using budget ini operations
Control: The ongoing monitoring process to ensure operations remain in line
What trends in food service are we seeing?
Environmental concerns and waste Sustainability (washing, food waste) Local/hyper local foods Patient room services Patient satisfaction (dining with dignity) Organic Legislation Experience economy Restaurants chosen based on social/environmental value Farm to table Instagramability Conveni-tech dessert as a destination/event Breakfast Items made in-house Less focus on meal times (blurring) Plant based
What are some convo-tech in food service?
Delivery services
Click and collect options
What is forms trends for 2020?
West African cuisine
-Fonio grain
Butters and spreads
- chickpea/macadamia butteer
- Eliminate use of palm oil
Refigerated snacks
-Fresh F&V, harboured eggs with toppings
Alternative flours
-Al,ond, Spent, coconut
Plant based proteins
Meat plant blends
Pureed food shipped like whole food
What does the trend digitalization mean?
Blockchain tech can digitize the supply chain making it far quicker and easier to traces food products
What is the trend of clean foods?
Millennials are demanding safe, health food choices that are clean without preservatives this is align with their condition that what is goof for the body is good for the planet
What does sustainability entail?
Way food is produced, preserved, shaped and consumed needs to be rethought entirely
-includes plastic packaging and recourse to local sourcing
How much energy do foodservice operations use?
2.5x more than other areas of commercial buildings
33% of energy in foodservice is attributed to operation of food service equipment
In food service what consumes more energy?
Fridge and cooking
What uses the most natural gas?
Cooking
Water heating
Space heating
If you use energy star certified equipment, how much less energy are you consuming?
30-90% less
What are possible ways to address energy conservation?
Ventilation system
-redirection of air
Adjust temp settings for individual work areas
Exhaust hood controls (reduce speed)
More insulation of cooking equipment to keep kitchen colder and making equipment more efficient
Heat Boosters (get newer)
Motion+ timers for light
Is it better, in terms of energy, to turn on equipment when you use it or keep it on throughout the day?
Better to use it when you need it
How do you save energy with equipment?
Energy star rated one
Use to fill capacity
Preventative maintenance
Cover pans and kettles
How do you reduce energy with a walk in fridge?
Strip curtains and automatic door closer
-both can reduce air infiltration by 75%
What can we do with HVAC systems to reduce energy?
Replace filters
Implement zone control, heat and cool occupied areas only
Insulate heating and air conditioning ducts
Select heat recovery system in hoods
What can we do with water heating to reduce energy?
Locate water heated closer to equipment
Insulate hot water lines
Size water heating equipment accurately
Repair leaky faucets
How do we reduce energy consumption with dishwashing?
Size dishwasher according to volumes and type of food service operation
Install easily accessible switch to shut down the dishwasher when not required
Consider chemicals instead of heat for sanitization (cheaper)
How do we reduce energy consumption with cooking equipment?
Purchase equipment that is energy efficient
Don’t purchase oversized equipment
Purchase equipment that is thermostatically controlled
Preheat oven just before use
Keep equipment thermostats calibrated
What can we do with cooking equipment to conserve energy?
Select open burner ranges
Convention ovens roast and bake in shorter time
Salamander broilers used infrared radiation and reach temps within seconds can also be turned off
What can we de with refrigeration equipment to reduce energy?
Place compressors and condensing coiled in remote locations outside of building
Dont prop open doors
What are other methods for conserving water
Low flow toilets Using grey water where practical Thaw food in fridge Low volume spray nozzles Not using flood floor method Low volume faucets Making only as much ice as needed
What is energy star?
International government backed symbol that indicates energy efficiency by providing unbiased info that for consumers and businesses to sue to wake well informed decisions
Provides a cost effective strategy to save money by reducing total energy consumption of buildings
How much more efficient is an energy star dishwasher?
40% for energy
50% for water
Save about 1,500 annually and 19,000$ in utilities
Saves 9,500kWh annually
How much more efficient is an energy stay commercial fridge/freezer?
20% more
1300-5500$ annual savings
Save 8,500-40,000kWh/yr
How much more efficient area energy star food holding cabinets and steam cookers?
Holding:70%
Steam:60% energy
90% watere
What is solid waste management?
Reuse and recycle
-priority for ethical legal and economic perspectives
What is source reduction?
Improve forecasting to reduce food waste
Incorporate leftovers into cafeteria offering if this option is available
Seek out products with less packaging
Donate food
What is the Möbius loop?
Recycling symbol indicates that a product or packaging is recyclable, contains recyclable content or both
Why is there a % symbol in the Möbius loop?
Indicates the % of product of the product has been made from recycled materials
