Management of Food Cost Controls

Controlling food costs starts with inventory organization and control. Proper organization of inventory levels and food storage area will re duce food costs. It’s a simple phenomenon that when we have excess we will waste. Better management of inventories can reduce food costs. Food cost control contains works related to management of Food, Labor and cost. There are invaluable cost control systems and theories, but operators find it difficult to implement such procedures, as they have to balance their time between running daily operations and managing cost control systems and procedures. In hotels and Restaurants Key Item Management will be effective to control food costs. It is a simple method to control food costs without tremendous time investment.

Key Item Management

The first step in key item management is identifying the key items. It can be achieved by requesting a descending purchase recap from distributors. Focusing on top items can make the task manageable. Next step is to examine Key item purchasing specifications. When examining key items, operators need to question the factors that have influenced purchasing specifications. The more lenient the specifications are for a particular product, the cheaper the landed cost of operation. Next step is to manage the price paid for each key item. Depending on what the item is, operators may be able to negotiate contracted prices for key items. This method of negotiation should be examined to see whether it is possible as it rarely has negative impacts on distributor. Next step is completing a yield analysis for all key items whose edible portion cost is different than the purchased cost and for all key items that are utilized in sub recipes. Next manage the profit margin for menu items that utilize key items as ingredients. Then complete an ideal usage for key items. These are the steps involved in Key item management.

Basics of Food Cost Control

Cost control is not a difficult task. Keep procedures and forms to the minimum necessary to do the job so that the people can provide information and fill out the reports. Make the Management Timely- information that takes too long to get is ineffective in controlling an operation. Food Cost Control Management includes both stress and excitement. Operators often find themselves trying to prioritize and balance their time amongst the competing needs required by the operation.

Questions:

• What is Management of Food Cost Control?
• What are the importance’s of Food Cost Control Management?