HOSPITALITY INDUSTRY COST CONTROL
CLM 170- Section: [Insert]
[Insert other course information (optional): blended, honors]
Credit Hours: 3.00
Lab Hours: 0.00
Lecture Hours:
3.00
IAI Core:
IAI Majors:
Semester: [Insert]
Course Begins: [Insert]
Course Ends: [Insert]
Days: [Insert]
Times: [Insert]
Room: [Insert]
Instructor:
[Insert]
Email: [Insert your @mchenry.edu email address or LMS information]
Phone: [Insert]
Office Hours: [Insert]
Office Location: [Insert]
Other Contact Information: [Insert]
Website (optional): [Insert]
Required Course:
Textbook(s): [Insert]
Supplies (if desired): [Insert]
Course Description:
Hospitality Industry Cost Control covers the cost control process and procedures found in typical
hospitality operations. Topics covered will include: inventory control, food cost, beverage cost, labor
cost, staff scheduling and operational costs. Application of general accounting principles and the
utilization of basic accounting generated information in the analysis and decision-making process for a
hospitality business will also be covered.
Course Note: This course requires intermediate reading, intermediate writing and intermediate math.
Section Notes:
[Insert if applicable]
Course Objectives:
1. What is Cost Control?
A. Describe the relationship between standards and controlling costs.
B. Identify the types of costs incurred by a restaurant or food service organization.
C. Classify food service costs as controllable or non-controllable.
D. Describe and give examples of controllable and non-controllable costs.
E. Classify food service costs as variable, semi-variable, or fixed.
F. Explain the basic food service cost control process.
2. A Closer Look at Food Cost
A. Calculate food cost and food cost percentage.
B. Explain the effect that cost and sales have on food cost percentages.
C. Explain the difference between an opening and closing inventory.
3. Using Standardized Recipes to Determine Standard Portion Cost
A. Explain why a standardized recipe is important to cost control and product consistency.
B. Describe the information included in a standardized recipe.
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4.
5.
6.
7.
8.
9.
C. Compare “as purchased” and “edible portion” methods of determining the cost of recipe
ingredients.
D. Develop a recipe cost card using a standardized recipe.
Cost Control and the Menu—Determining Selling Prices and Product Mix
A. Determine a selling price based on various markup methods.
B. Explain how market forces affect menu prices.
C. Explain how the menu product mix is used to determine the composite food cost of an
operation’s menu.
D. Explain how the menu serves as a food cost control mechanism.
Controlling Food Costs in Purchasing and Receiving
A. Explain how a specification becomes a control in the purchasing function.
B. Explain the parts of a purchase specification and of a purchase order.
C. Calculate a yield test that identifies the difference between AP price and EP cost.
D. Identify factors that affect the purchase price.
Controlling Food Costs in Storage and Issuing
A. Describe food storage techniques used to control theft.
B. Explain the FIFO method of stock rotation.
C. Describe the proper methods of taking inventory.
D. Describe the various methods of inventory pricing.
E. Calculate inventory turnover rate and inventory value.
F. Calculate a daily food cost.
Controlling Food Cost in Production
A. Develop a food production chart.
B. Describe how a waste report helps control food costs.
C. Use a conversion factor to calculate a new yield for an existing recipe.
D. Determine a recipe’s yield and the number of portions it will produce.
Controlling Food Cost in Service and Sales
A. Explain the importance of portion control to food cost.
B. Describe various portion control devices and their uses.
C. Explain the importance of training, monitoring, and follow-through in portion control.
D. Compare the duplicate guest-check system to the POS control system for controlling the
receipt of money.
E. List the benefits of each payment method used by the restaurant and foodservice industry.
F. Describe cash handling procedures used in operations.
G. Complete a daily sales report.
Controlling Labor Costs
A. Distinguish between fixed, variable, and semi-variable costs.
B. Explain how payroll cost, FICA, Medicare, and employee benefits make up labor cost.
C. Describe the components and factors to consider in the development of a master
schedule.
D. List factors that affect labor cost.
E. Explain how indirect factors, such as quality and productivity standards, affect labor
costs.
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10. Managing Cash at the Operation
A. Describe the best practices for monitoring cash handling at the operation.
B. Calculate guest checks, including tax and tip amounts.
C. Process cash and noncash payments received from guests.
D. Perform a cash register reconciliation.
11. Managing Payables and Receivables
A. Define accounts payable and describe the process for managing them.
B. Define accounts receivable and describe the process for managing them.
12. Exploring Cost
A. Classify foodservice costs as controllable or non-controllable.
B. Describe and give examples of controllable and non-controllable costs.
C. Classify foodservice costs as variable, semi-variable, or fixed.
D. Describe and give examples of variable, semi-variable, and fixed costs.
13. Preparing the Operating Budget
A. Describe a foodservice operating budget.
B. Forecast foodservice sales revenues and guest counts.
C. Forecast foodservice operating costs.
D. Prepare a master labor schedule for a foodservice operation.
14. The Profit and Loss Report
A. Describe a profit and loss report, and explain its use.
B. Prepare a profit and loss report based on sales and cost information.
C. Analyze information found on a profit and loss report.
15. The Capital Budget
A. Explain the purpose of a capital budget.
B. Describe the process followed to prepare a capital budget.
C. Assess an operation’s capital needs.
D. Evaluate different options for capital purchases.
E. Prioritize and plan capital purchases
Course Outline:
I.
II.
III.
What is Cost Control?
A. The manager's role in cost control
B. Types of costs
C. The cost control process
D. Monitoring and analyzing sales and costs
A Closer Look at Food Cost
A. Food cost defined
B. Calculating food cost
C. Calculating food cost percentage
D. How costs and sales affect food cost percentage
Using Standardized Recipes to Determine Standard Portion Cost
A. What is a standardized recipe?
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IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
B. Determining "as purchased" amounts from "edible portion" amounts
C. Creating recipe cost cards
D. Determining standard portion cost
Cost Control and the Menu--Determining Selling Prices and Product Mix
A. Determining selling prices for menu items
B. Market forces affecting selling prices
C. Menu product mix
D. Monitoring menu-related controls
Controlling Food Costs in Purchasing and Receiving
A. Purchasing procedures and cost control
B. Catering purchases
C. Butcher test
D. Receiving procedures and cost control
Controlling Food Costs in Storage and Issuing
A. Using proper storage techniques to control food costs
B. Inventory control
C. Perpetual versus physical inventory
D. Controlling spoilage
Controlling Food Cost in Production
A. Monitoring the use of standardized recipes
B. Determining how much food to produce
C. Recipe conversions
D. Determining recipe yield
Controlling Food Cost in Service and Sales
A. Service and portion control
B. Portion control devices
C. Product usage report and waste report
D. Controlling food cost in sales
Controlling Labor Costs
A. Labor costs
B. Budget as a cost control
C. Creating schedules
D. Master schedules
E. Creating the crew schedule
F. Controlling labor costs
Managing Cash at the Operation
A. The importance of monitoring cash
B. Calculating guest checks
C. Processing payment from guests
D. Cash register reconciliation
E. Preparing bank deposits
Managing Payables and Receivables
A. Introduction to accounts payable
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XII.
XIII.
XIV.
XV.
B. Introduction to accounts receivable
C. Tracking and collecting receivables
Exploring Costs
A. Controllable and non-controllable costs
B. Fixed, variable, and semi-variable costs
C. Crossover or cost classifications
Preparing the Operating Budget
A. What is an operating budget?
B. Forecasting sales revenue
C. Forecasting costs
D. Putting it all together
The Profit and Loss Report
A. What is a profit and loss report
B. Preparing profit and loss reports
C. Analyzing profit and loss reports
D. Comparing actual values to budgeted values
The Capital Budget
A. What is a capital budget
B. Preparing a capital budget
C. Outlining capital spending plans and timelines
D. Receiving, storing and issuing beverages
Assignments and Grading Criteria
[Insert. Must include the value of each project, skill, exam, etc. as it relates to the final grade.]
Policies
Attendance policy: Attendance is a mandatory expectation of this program. If a student will be late or
absent, they are expected to contact the instructor just as they would for a job. A student may be
withdrawn at ANY time, at the discretion of the instructor for excessive tardiness or absences. Excessive
is defined as:
2 tardies = 1 absence
3 non-consecutive absences = drop of one full letter grade
3 consecutive or 5 non-consecutive absences = student may be withdrawn
Late work/make-up policy: [Insert]
Weekly Course Schedule
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[Insert date of each class meeting, topics to be covered, assignment due dates, testing dates, final exam
date, etc. Table format below is optional.]
Dates of
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Meetings
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Course Schedule
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Teaching Schedule
The scheduling of the activities and teaching strategies on this syllabus, but not the objectives or content,
may be altered at any time at the discretion of the instructor.
Withdrawals: The last day to drop this course is [Insert date according to Important Class Dates for term
https://catalog.mchenry.edu/syllabi/Pages/default.aspx]. Failure to attend class does not constitute official
withdrawal. If students are considering a withdrawal, they should consult directly with the instructor and an
academic advisor. Students may withdraw from a class through the Registration Office, either in person or by
fax: (815) 455-3766. In their request, students should include their name, student ID number, course prefix,
number and section, course title, instructor, reason for withdrawing, and their signature. Withdrawal from a
course will not be accepted over the telephone.
Academic Support for Special Populations Students
Students with Disabilities:
It is the policy and practice of McHenry County College to create inclusive learning environments. If you
are a student with a disability that qualifies under the American with Disabilities Act – Amended
(ADAA) and require accommodations, please contact the Access and Disability Services office for
information on appropriate policies and procedures for receiving accommodations and support.
Disabilities covered by ADAA may include learning, psychiatric, and physical disabilities, or chronic
health disorders. Students should contact the Access and Disability Services office if they are not certain
whether a medical condition/disability qualifies. To receive accommodations, students must make a
formal request and must supply documentation from a qualified professional to support that request.
However, you do not need to have your documentation in hand for our first meeting. Students who
believe they qualify must contact the Access and Disability Services office to begin the accommodation
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process. All discussions remain confidential. The Access and Disability Services office is located in
Room A260 in A Building in the Atrium. To schedule an appointment to speak with the manager, please
call (815) 455-8766. Information about disabilities services at MCC can be found at:
www.mchenry.edu/access
Students in Career/Technical Programs
As a student enrolled in a career or technical education program at McHenry County College, you may be
eligible for services and assistance under the Carl D. Perkins III Grant. Grant funds are used, in part, to
assist students who are at risk of not succeeding in their educational pursuits. The traits that often prevent
students from succeeding are: economic disadvantage, academic disadvantage, disability/disabilities,
single parent, displaced homemaker, enrollment in a program in which their gender is under represented,
and limited English proficiency (LEP). The definitions of each trait are available in the Access and
Disability Services office. Students with one or more of these traits are referred to as Perkins Special
Populations Students.
If you would like to know if you are eligible for services at any time during the semester, please do not
hesitate to contact the Manager, Access and Disability Services. The office is Room A260, and phone
number is (815) 455-8676.
Additional syllabus information and resources can be found at www.mchenry.edu/syllabusinfo.
STUDENTS ARE RESPONSIBLE FOR KNOWING ALL SYLLABUS INFORMATION.
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