Chapter 4
Food Purchasing and
Receiving Control
Principles of Food, Beverage, and Labour Cost Controls,
Canadian Edition
• 4.1 Describe how quality & quantity food purchase standards are established.
• 4.2 List six reasons that standard purchase specifications are important, provide
examples of specifications for both a perishable and nonperishable food item.
• 4.3 Describe the process used to determine the quantity of perishable and
nonperishable food to be purchased.
• 4.4 Determine order quantities using the periodic and perpetual order methods.
• 4.5 Describe the procedures for purchasing perishable and nonperishable foods
at the most favourable prices.
• 4.6 Describe the various purchasing methods.
• 4.7 Describe the duties of a receiving clerk, and outline the essential equipment
and supplies needed for proper receiving.
• 4.8 Describe the steps in a standard receiving procedure.
• 4.9 List the information contained in the receiving clerk’s daily report, and
explain the report’s function.
• 4.10 Explain the difference between directs and stores, and provide examples of
each.
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Learning Objectives
2
• Who does the purchasing?
• Owners
• Managers
• Chef
• Purchaser
• Steward
• One person responsible so they can be held
accountable
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Responsibility for Purchasing
3
Perishables & Non-perishables
• Non-perishables: longer shelf life
• Groceries
• Staples
• Storeroom items
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
• Perishables: those items that are typically fresh
foods, relatively short shelf life
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Developing Standards and Standard
Procedures for Purchasing
Quantity
Price
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Quality
5
Quality Standards
• Standard Purchase Specifications:
• Useful in menu preparation
• Eliminate misunderstandings
• Allows for true competitive bidding
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
• Force to determine exact requirements
• Eliminates verbal descriptions each order
• Facilitate checking food when received
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Black Angus Strip Loin, short cut
IMPS number 180
Boneless 25 cm trim
Canada AAA
Range #2, minimum 5.5 kg, maximum 6.5 kg
1.0 to 2.0 cm fat, except for seam fat
Chilled upon delivery
Free from objectionable odours, no evidence of
freezing
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Food Specifications Sample
7
• Market quotation list: a form often used as a
tool by food purchasers for
• Taking daily inventory of perishables
• Determining suitable order quantities
• Recording market quotations
• Selecting vendors
• Par stock: maximum quantity that should be on
hand at any given time
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Quantity Standards- Perishables
8
• Periodic order method:
Amount required for the upcoming period
- Amount presently on hand
+ Amount wanted on hand at the end of the
period to last until the next delivery
= Amount to order
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Quantity StandardsNonperishables
9
Periodic Order Method
• Periodic order method example:
- 9 cans on hand
+ 10 cans to be left at the end of the period
(desired ending inventory)
=15 cans to be ordered on this date
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
14 cans required
10
Desired Ending Inventory (DEI)
• The quantity sufficient to last until the next delivery
is received
Number of days in
delivery period
X
2 cans per day
10 cans normal
usage
X
5 days in delivery
period
+ 50% safety factor =
=
=
Normal usage
10 cans normal
usage
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Daily Usage
15 cans DEI
11
• Perpetual inventory method:
Par stock
- Reorder point
= Subtotal
+ Normal usage until delivery
= Reorder quantity
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Perpetual Inventory Method
12
• Perpetual inventory method example:
20 par stock
- 15 reorder point
= 5 subtotal
+ 10 normal usage until delivery
= 15 reorder quantity
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Perpetual Inventory Method
13
• Storage space
• Limits on total value of inventory prescribed by
management
• Desired frequency of ordering
• Usage
• Purveyors’ minimum order requirements
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Determinants for Maximum
Quantity of Perishables on Hand
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Wholesalers
Local Producers
Manufacturers
Packers
Local farmers
Retailers
Cooperative associations
Internet suppliers
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Suppliers to Foodservice Operators
15
Means of Obtaining Price Quotes
• Internet/Email
• Quotation sheets obtained by mail
• Information supplied by salespersons
• Direct computer links with purveyors via the
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
• Telephone
internet or dedicated telephone line
16
Centralized Purchasing
• Advantages:
• Desired quality can be obtained, a greater choice
of markets
• Larger inventories, ensuring reliable supply
• Reduce dishonest purchasing in individual units
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
• Purchase at lower prices because of volume
17
Centralized Purchasing
• Each unit must accept the standard item in stock
and has little freedom to purchase for its own
particular needs
• Units can’t take advantage of local specials
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
• Disadvantages:
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Written Purchase Order
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Written verification of quoted price
Written verification of quantity ordered
Written verification of all goods ordered
Written and special instructions to the receiving
clerk, as needed
• Written verification of conformance to product
specification
• Written authorization to prepare vendor invoice for
payment
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Advantages include the following:
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Written Purchase Order
Item Name
Spec #, if appropriate
Quantity Ordered
Quoted Price
Extension Price
Total Price of Order
Vendor Information
Purchase Order Number
Date Ordered
Delivery Date
Ordered by____
Received by_______
Delivery Instructions
Comments
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
The written Purchase Order form should contain space
for the following information:
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Purchasing Methods
• One-Stop Shopping (One Purveyor)
• Cost Plus
• Contract Purchasing
• Food Brokers
• Standing Orders
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
• Open Bid
21
Receiving Standards
1. The quantity delivered same as the quantity
2. The quality delivered meets establishment’s
standard specifications
3. The prices on the invoice match the Market
Quotation List
4. The goods are received at the time specified
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
on the Market Quotation List and invoice
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Sample Invoice
• To: Bistro Quatre
Date: October 3, 20XX
Quantity
Unit
Description
13.6
4.54
kg
kg
Tri-tip;IMPS 185C
Veal striploin 344A
Unit Price
22.99
27.17
Amount
312.66
123.35
$436.01
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Market Price Meat Co.
300 Market St.
Calgary, Alberta
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Receiving Procedures
1. Verify the quantity, quality, and price for each
2. Verify invoice with invoice stamp
3. List foods delivered on the Clerk’s Daily
Report for that day
4. Forward paperwork to proper personnel
5. Move food to storage or production areas
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
item
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The Invoice Stamp
• The invoice stamp provides for:
• Signature of the receiving clerk
• Steward’s signature, acknowledging delivery
• Controller’s verification of calculations on invoice
• Signatory approval of the bill for payment
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
• Date food received
25
• Directs: foods that extremely perishable by
nature, purchased daily.
• For immediate use
• Considered to be issued on delivery
• Go directly onto today’s food cost
• Stores: perishable but have a relatively longer
shelf life.
• Not for immediate use
• Included on food cost when they are issued
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Receiving Clerk’s Daily Report
26
• The great problem in employing receiving
personnel is with the vast amount of knowledge
of foods these workers require
• This may explain why some restaurants do not
require quality checks upon delivery
• Someone has to do it!!!
• If not your customers will!!!
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Training for Receiving
27
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Bin card, p. 104
Centralized purchasing, p. 114
Contract purchasing, p. 115
Cost plus, p. 115
Desired ending inventory (DEI), p. 105
Directs, p. 120
Food brokers, p. 115
Invoice, p. 117
Invoice stamp, p. 119
Market Quotation List, p. 100
Nonperishable foods, p. 96
One-supplier buying, p. 115
Open bid, p. 115
Par, p. 100
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Par stock, p. 100
Periodic order method, p. 103
Perishable foods, p. 96
Perpetual inventory card, p. 106
Perpetual inventory method, p. 106
Purchase Journal Distribution, p. 121
Purchase order, p. 114
Receiving Clerk’s Daily Report, p. 120
Reorder point, p. 107
Reorder quantity, p. 108
Standard purchase specifications, p. 98
Standing orders, p. 115
Stores, p. 121
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Key Terms
28
Chapter Web Links
• Micros POS software
• www.micros.com/AboutUs/Locations/Offices.aspx?country=Ca
nada
• Canadian Food Inspection Agency:
www.inspection.gc.ca/english/toce.shtml
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
• NCR- Aloha POS software
• http://www.ncr.com/products/restaurant/pos-software
• Canadian Meat Business: www.meatbusiness.ca/
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Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Copyright
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