Chapter12Q1 3 5 8 1214 1 Revenuecontrol is anelement insalescontrolThelatteris abroadconceptwhichincludesallofthoseprocessesbymeansofwhichmanagersattempt tooptimizethenumberofsales tomaximizeprofitandtoinsurethatallsalesresult in appropriaterevenue 3 Generallythecityrestaurantwouldbemostlikelytoachievegreaterdollarsalesvolumebeofthelargerpopulationbasethatitcandrawin customers 4 Foranyfoodserviceestablishment theportionsizesmustbesuitableforthetargetaudiencethattheestablishmentwishestoattract If portionsizesaretoobigortoosmallthen salesvolumemake decreas one sthatis sosimilarto donothaveapreferenceandwillpickthecheaperoption another thatcustomers Product Homogenous DifferentiatedProduct issufficientlyuniquesothatcustomersdevelop apreferenceforitandareoftenwillingtopayahigherprice 8 the smostimportantelements inmenupreparation I Layout andDesign 2variety arrangement 3Item andlocation 4 Descriptivelanguage 5kitchenpersonnelandequipment aThesmostcommonmethodsforestablishingmenu prices I competitorsprices acost tosalesratios 3 contributionmargins tosalestechniquesthatmanagementmightsuggestthatsalespersonneluse a toimprovegrossrevenueandaveragecheck I suggestadditionalpurchasessuchaswinewidinner preentreecourcesetc 2 suggesthigherpricedmenuitems particularlythosethatcanbeserved w o delay b toincreasetips I suggestadditionalpurchases 2 suggesthigherpricedmenuitems particularly thosethatcanservedwodelay 3maintainthehighestpossiblestandardsofservice c tosellamenuitemprepared inexcessquantitythatmustbethrownaway ifnotsold 1 suggesttheitem 11 Numberofcovers totalsales 20 70.00 87 372.40 142 863as 463 2309oo Average 3so 4as 6as 4au 12A vergesalein arestaurantwould benegativelyaffected a badserviceswouldresultincustomersorderingfewercourses Deteriorationinservicestandards slow service b customerdissatisfactionoverfoodqualitywouldresultin customers orderingfewercourses aInadequatesalespromotioncouldresult incustomersorderinglowerpricedmenuitems or intheirorderingfewercourses dchangesinportionsizesmightaffectthenumberofcoursesorderedbycustomers Largeportionsmightleadtoloweraveragechecks it forexample largerentreeportionswere to discouragecustomersfrom orderingappetizers 28 Fixedcosts 12 Profit higher ordesserts interesingly smallerportionscouldconceivablyleadto averagechecks Food costo 76 allcostsexceptfoodcosts z isa.azcaas ItemA 891 8.0818ios ItemB zoz is33isno ItemD zss Itemc 4no z oz o 12.00 Iteme z.az toosao.io oza Chapter 13 Q8 1112 15 16 8 It isdesirable tofix responsibilityforbeveragepurchasing inorderthat oneindividual may beheldaccountable forallpurchases Responsibilitymay beassigned to awinestewardsommelier a purchasing agent a foodand beverage manager or an owner 11 Considerations that abeverageoperatorshould takeinto account in establishing quality standardsforthepurchaseof beverages a Productcost b Customer Preference c Product Popularity d AgeoftheBeverage 12Theprincipalfactorsusedtoestablish quantity standards for beveragepurchases a Frequencywithwhichmanagementchooses toplaceorders b storagespace available c Fundsavailablefor inventorypurchases d Delivery schedules setby apurveyor e Minimumorderrequirementssetbypurveyor f Pricediscountavailable fordiscount orders g Pricespecials available h Limitedavailability ofsomeitems is a Orderusingperiodicordermethod ParStock Item Smirnoffvodka 72 Gordon'sGin 36 JackDaniels CanadianClub g 36 CrownRoyal I d 24 48 3 4 33 1 s 10 26 b Differences btwusagefiguresandorderquantities forGordon'sGinandJackDaniels signalstheneedfor review of par stock set forthese items The parstockforGordon'sginshould behigher actualusagehasbeengreaterthanexpected Theparstock for JackDanielsshould be lower actualusagehasbeen farlessthan anticipated ParStock ReorderPoint SmirnoffVodka 84 Gordon'sGin 168 42 36 72 CanadianClub 63 CrownRoyal 21 16 Item JackDaniels 18 27 9 ReorderQuantity 72 144 36 54 18 Chapter14Q23.8.1119,20 2 The3 standardsfor beveragerecieving a thequantityof anitemdeliveredmustequal thequantityordered bThequality of anitemdeliveredmustbe thesame asthequalityordered c Thepriceontheinvoice fortheitemdelivered shouldbe thesamepricequoted or listedwhentheorderwasplaced 3 StandardProcedureforrecievingBeverages 8 Temp is a criticalelement in maintaining productqualityforbeersandwines Humidity is animportantfactorinpreventingthedeteriorationofcorks Toomuchlight in a storagefacilitywilladversely affectthequalityofbeersandwines Handling is an importantfactorinmaintainingthequality ofwinesbe sedimentcouldbe dispersedthroughthe improperlyhandledwine destroying itsclarityandmaking it unpalatable Spirits unlikewine can bestored upright onhorizontalshelvesforunlimitedperiodsof times If wine is tobekeptforanylengthof timethebottlesmustbestoredontheirsides Cannedandbottledbeers aretypicallystored in cases 11 a Temperature is a criticalelement in maintainingproductqualityfor beers andwines b Humidity is an importantfactor in preventingthe deterioration of corks c toomuchlight in a storagefacility willadversely affectthequalityof beersandwines 19writtenrequisitions arenecessary a topreventmisunderstandingsbtwpersonnelinvolved b Toestablish accountability forissues c Toproviderecords for accounting purposes 20 Afullbottlesalesslipis a specialbeverage requisitionformusedtorecordtheissue and sale of full bottles of beverages In operations thatrestockbarson fullbottleforanyemptysystem it substitutes foranyemptybottle Thusit isused forbothan inventory controldevice as wellas a salescontroldevice inoperationswhereit is still in use chapteris z u s is 2 Four noncomputerdevicesusedto standardized quantities inbevproduction shotglasses Jiggers Pourers Automatic dispensers 4 Standarddrinkrecipesareestablished to controlportionsize b tomaintainqualitycontrol a d tocontrolcost s Standard salesprices arenecessary as tomaintain plannedcost tosalesratio for each drink b tofacilitatepostingprices inmenus orelsewhere c toestablish controlover prices customers are charged 6 LiquorCost 0.58peroz Mixercost o ou per oz c liquor Mixer 7 a 20 a i'or Mixer 102 x o 58 6oz x o ou o.gg o 24 082costgrin o so o g 7oz x o ou o 28 502 Mixer 1.15costdrink 2oz x o 58 1.16 6oz 0.82 o zo x o ou 0.24 1.40costdrink 4 10 115 ozo 5 75 1.40 o zo 7.00 b EXTRA 8 33.8oz I litre 33.802 1oz 33.8drinks 13 33go 0 40 15 Frequentmonitoring of baroperationsisessential be a Toguard againstemployees whomayintentionallydeviate fromestablished standards andstandard procedures cedar b toensure employeeshaveunderstood and are following standardsandstandard pro Chapter1601 1 6,8 BeverageCosts Art's ChezPierre 8325 5000 OpeningInventory 8000 Purchases TotalAvailable ClosingInventory valueofIssues soooo Carol's b Bevcosts 9939 41412so 4872 7454 10666 c Bevcosta 12326 13000 18991 7000 ooo 9327 9664 3856 mo 2,883,1g 1000 woo 0 Inventory Closing 7 Differential wow 6000 Sales 232s 1867 20s 1988 275 121 9939 8349 I cookingLiquor Adjustments NetSales Managersdrinks 30131.20 SpecialPromotions 50.88 7566.72 costofBeveragessold Beers 33.92 4198.08 Beverage Sales 424.00 41896.00 Beveragecost 4232.00 Totalsales 42320.00 Spirits wines Beer 5775.00 3675.00 1050.00 total Cost 5 Foodtobarldirects 305.00 305.00 StoreroomIssue Mixers 865.00 865.00 subtotal 1170.00 1170.00 Total 6945.00 spirits Bartokitchen 88.00 6945.00 wines Beer 308.00 Total 44.00 440.00 officers Drinks SpecialPromotions 208.00 312.00 296.00 620.00 0 520.00 44.00 960.00 874.00 1620.001 144.00 210.00 6649.00 3055.00 1006.00 10710.00 CostPercent 22.1 Cost perDollarsale 0.221 40.4 0.404 24.0 0.24 25.6 0.256 Cost Adjustments Sales todate Date AddedtoCost Subtracted today todate today 1011 910 240 240 25 is 104 45 10 20 8 1015 8 Item 30 10 12 1013 18 z 237 300 230 445 682 982 1212 vodka 3 4 3 4 Bourbon y Scotch rye Rum 910 850 1760 920 1070 900 2680 3750 BottlesConsumed Sales valuebottle Totalsalesvalue Canadian go 235 695 azs 0 110 335 165 0 120 320 no 6435 10209 8644 20000 41412.50 29812gg 32.2 25.9 sales Date today todate Today todate 1011 250 910 910 250 1012 225 475 1760 850 1013 2 920 2680 745 1014 290 1035 3750 1070 1275 101s 240 4650 900 Additions Subtractions soo 150 e.g 10500.00 Adjustments 1012 c 8349 6825 11364 9229 subtotal Subtract 339.20 6 b 6000 9939 badired storeroom issues wines 7617.60 NetAdjustments NetCostofsales 28.0 Add Inventory opening subtotal 24.0 a 3 CostofLiquorConsumed BarInformation costofIssues 30.0 4650 Foodcost da Todate 26.4 26.4 24.1 25.3 25.8 23.4 28.0 26.2 25.6 26.1 vodka FoodCoste today Todate 27.5 27.5 26.5 27.0 27.1 27.8 27.6 26.7 27.4 29.3 Chapteris 13.5.1113 1 Directcompensationrefers to salariesandwagespaidon a weekly monthly orannual basis It alsoincludestipsbonuses andcommisions Indirect compensationincludessuchbenefits as healthbenefits paidvacations employeediscounts andotherbenefitsthat wouldnotbe considereddirectcompensate 3 Fiveformsofindirectcompensation are health benefits freemeals lifeinsurance freelivingaccomidations andfree use ofrecreational facilities Manyothers are possible 5 Hidden costs ofhighlabourturnover include a excessive trainingcosts b higherrecruitingcosts includingadvertisingandfeesto employment agencies contribution funds unemployment insurance to rates state c higher overtimewagestoremainingstaffwhile searching forandtrainingreplacement employees e reduced productivity of new staff intrainingmayincrease costs d 11 Totalfixedcostsfortheextrahour VR 40 3 12costofheatlightandgas a BEP TotalCosts CR b 280 0.4 112.00 CR t o 0.6 Income 280 uz 168.00 87.000.6 145.00 12 sales 450000 FixedCosts 135000 Directvariablecosts120ooo Profit 285000 semi variable 30000 165000 285000 13 FixedCosts 30 Directvariablecosts 25 sales too Profit 10 65 semivariable 45 Chapter19 65 Q1 4 7,9 11 1 The 3 stepsusedto establish standards andstandardprocedures forpersonnel a Organizingtheenterprise b Preparingjobdescriptions c schedulingemployees 4 variablecostpersonnel are those employeeswhose numbers have a direct relationship to businessvolume servers are theprimeexample of variablecost Fixedcostpersonnel are thoseemployees whosenumbers donotvary withnormal flucuations in business volume Examples managersandchefs 7 Performancecriteria are standards of jobperformance Theyserveas 9 Ajobspecification outlines thequalifications neededto perform a applicantsfor ajobhavetheappropriate qualifications 10 11 a means of evaluating an employee's performance job Theprimary use of a jobspecification is to determine if Chapter20 Q 1,24.6.1115.20 1 Trainingis for teachingindividuals the skills necessary toperform particulartasks a process Theobjectives of education includeincreasingones knowledge of a subjectanddevelopingthecapacity ofthemind to address complex topics andto analyzecritically Traininghas a much more limited objective toteachspecificskillsneeded toperform tasks 2 4 Training is costly totheorganization soit'simportantthattheneeds fortraining be assessedpriorto establishing a training plan Atraining needs assessment examines theneedto trainpresentstaffandnew staff Forpresent staffitexaminestheircurrentabilityto carryout tasksandtheneedforcross training Fornewstaff itexaminestheextent to whichtrainingmusttakeplace in lightofthequalifications establishedforjobsandtheextenttowhichnew staffarelikely torequiretraining 6 Theprocess ofperiodically reassigning employees tootherjobs isknown as jobrotationManagers institutejobrotation sothatskillslearned duringcrosstraining can bemaintainedandtohelppreventboredomthatfrequentlycomeswithroutinejobs 11Alessonplanis awrittenstepbystepdescriptionofthetrainingrequiredfor a specific anyitemsthatmaybe requiredduringinstruction instructional timetable and jobincludingobjectivedetailednotesaboutcontent the 15FourPracticaltestingtechniques include as oral questioning b writtenexamination c ofnewlyaquired skills supervisedpractice d requiringdemonstration ofnewlyacquired skills 20 a Themanagershouldimplement a series of programmed instruction workshops addressing ware washing foodhandlingandstorage thefollowingareas safeandsanitarypracticeswhensweeping mopping wipingdownfloors wallsand countersurfaces correctfoodstoragetemps forboth hotandcoldfoods