Revised 1/2015

HRI 251 - Food and Beverage Cost Control I Adolescent Alcohol Use and Abuse (3 CR.)

Course Description

Presents methods of pre-cost and pre-control as applied to the menu, purchasing, receiving, storing, issuing, production, sales and service which result in achievement of an operation's profit potential. Emphasizes both manual and computerized approaches. Lecture 3 hours per week.

General Course Purpose

The general goal is to have the student set up food and beverage cost control systems which will enable a hospitality operation to better achieve its profit potential. More specifically, the student will gain:

  • Sufficient knowledge to analyze and improve existing food and beverage cost control systems
  • Sufficient knowledge to analyze and develop food and beverage cost control systems where none presently exist
  • Understanding of the importance of food and beverage cost controls as an integral part of a hospitality operation
  • Managerial knowledge to assume responsibility for the control function in a food and beverage operation
  • Knowledge of computerized control procedures for food and beverage operations

Course Prerequisites/Corequisites

Prerequisite: Math 151

Course Objectives

 Upon completion of this course, the student should be able to:

  • Describe the conditions that necessitated development of food and beverage cost controls
  • Define food and beverage "cost" and identify the various categories of costs
  • Calculate food and beverage "cost to sales ratios."
  • Define "sales" and identify various ways of expressing sales
  • Memorize the principle objective of a food and beverage cost control system
  • Explain the cycle of control and identify the aspects of it which should be emphasized
  • Identify the basic operating activities known as the flow of costs
  • Define the importance of using a “standard”
  • Explain the relationship between routine procedures and controls
  • Illustrate the nature of the Food Manage/Controller's job and his/her position within the operation
  • Identify who has ultimate responsibility for food and beverage costs
  • State the reasons why the menu is important to a successful food and beverage service operation
  • Distinguish between the basic kinds of menus and their impact on average check per guest and total revenue
  • Relate the effects of pricing your menu too high or too low
  • Recall the importance of the little things in preventing waste
  • Identify the primary objective in the purchasing of food and beverages
  • Know the three requisites to an effective purchasing program
  • Define standard purchase specification, and know who establishes it
  • Identify the primary objective in receiving food and beverages
  • Know the importance of the credit memo and how to use it
  • Explain how the meat tag is used to establish the positive and perpetual control of major meat items
  • Tell what a receiving clerk's daily report is
  • Discuss the way in which goods should be inspected prior to accepting them
  • Identify the primary objective in storing food and beverages
  • Define par stock
  • Know the essentials necessary to achieving basic security over all merchandise
  • Identify the primary objective in the issuing of food and beverages
  • Explain the purpose of the requisition and its use in calculating daily food and beverage cost
  • Calculate and verify extensions on invoices and requisitions
  • Know the essential requirements to obtain quality in food and beverage preparation on a continuing basis
  • Define standard portion size/pours
  • Know the elements of a standard recipe
  • Define and calculate a “yield”
  • Practice doing a yield test and translating the results into cost management decision
  • Calculate the cost factor and use it to determine the cost per servable pound
  • Calculate portion costs and use the portion cost multiplier
  • Calculate the actual cost of food and beverages consumed and actual cost of food and beverages sold
  • Calculate the month-end actual food and beverage costs
  • Calculate daily actual food and beverage costs
  • Calculate standard food and beverage costs
  • List the causes for actual food and beverage costs exceeding standard
  • Know the objective of food and beverage production planning
  • Prepare a forecast and utilize the results in making purchasing and production decisions
  • Know the various uses of the food and beverage sales history record
  • Collect data needed to prepare a food and beverage sales history and analyze the results
  • Know the types of employee compensation
  • Calculate labor, food and beverage cost percentages on an income statement 

Optional Topics

  • Food and Beverage Cost and Sales Concepts
  • The Control Process
  • Menu Planning
  • Food and Beverage Purchasing Control
  • Food and Beverage Storing and Issuing Control
  • Monthly / Book Value Food and Beverage Inventory
  • Monthly and Daily Food and Beverage Cost
  • Food and Beverage Production Control
  • Food and Beverage Yield Testing
  • Forecasting Food and Beverage Sales
  • Food and Beverage Standard vs. Actual Costs
  • Food and Beverage Sales Control
  • Food and Beverage Labor Cost Considerations
  • Establishing Food and Beverage Performance Standards
  • Training Food and Beverage Staff
  • Monitoring Performance in Food and Beverage and Taking Corrective Action