Course Number and Title: HRI 212 Food and Beverage Cost Control
In this course, students investigates the principles of cost controls and their application to the hospitality industry. The flow of costs for beverages, food, and labor are discussed in the context of operational efficiency. Issues relating to fraud prevention are also reviewed.
- Develop solutions for labor, food, or beverage cost problems using calculations. (CCC 1, 2; PGC 2, 7)
- Compute the cost of a recipe, formulate conversions, solve yield percentages, calculate sales price, and describe the impact of food cost. (CCC 2, 6; PGC 2, 3, 4)
- Interpret control techniques used in food and beverage operations. (CCC 1, 2, 3, 6; PGC 1, 2, 4)
- Calculate and interpret food and beverage cost, food and beverage sales, and the value of inventory. (CCC 2, 6; PGC 2, 4)
- Employ employee organization, scheduling, and labor management controls. (CCC1, 3; PGC 4, 7)
- Analyze revenue management in a food service operation. (CCC 1, 2; PGC 2, 4, 7)
- Construct and manipulate income statements and budgets. (CCC 1, 2; PGC 4, 7)
See Core Curriculum Competencies and Program Graduate Competencies at the end of the syllabus. CCPOs are linked to every competency they develop.
Upon completion of this course, the student will:
- Develop solutions for labor, food, or beverage cost problems using calculations.
- Describe the different cost-to-sales relations.
- Discuss both cost and sales.
- Distinguish among the various types of costs.
- Define the cost-to-sales ratio and cost percentage, and calculate formulas.
- Compute how to cost a recipe, formulate conversions, solve yield percentages, calculate a sales price, and describe the impact of food cost.
- Provide a detailed explanation of methods for determining standard portion costs, butcher test, and cooking loss test.
- Compute the conversion factor, recipe cost, portion cost, the yield factor, the spice factor, and the Q factor.
- Discuss the importance of using standardized recipes.
- Describe the impact that portion and quality control has on food cost.
- Identify how to compute and complete a recipe cost card.
- Compute menu prices using the common industry methods.
- List factors that impact an operation’s sales pricing strategy.
- Describe the benefits of using a computerized point of service (POS) system.
- Describe primary methods used to take corrective action.
- Interpret control techniques used in food and beverage operations.
- Explain the operating cycle of control starting from the menu and illustrating each point in the process: purchasing, receiving, storage, issuing, preparation, production, service, guest check, and forecasting.
- Compute quantities to purchase given forecasted needs.
- Describe the duties of a receiving clerk.
- Recognize associated terminology such as purchase specifications, purchase order, invoice, standard recipe, and standard portion size.
- Describe the differences between the periodic order method and the perpetual inventory method.
- Relate the various standards necessary for establishing control over receiving, storing, and issuing food and beverages.
- Define par stock, and explain its purpose.
- Conduct a make or buy analysis.
- Describe the causes of excessive costs while food and beverage is in storage.
- Identify the importance of first-in, first-out (FIFO) product rotation.
- Explain standard and actual cost for a period.
- Describe inefficiencies in the day-to-day operation, including poor forecasting, overproduction, and failure to follow standardized recipes.
- Calculate and interpret food and beverage cost, food and beverage sales, and the value of inventory.
- Explain the procedure for taking daily and/or monthly inventory of food and beverage, and describe the methods for assigning values to the inventory.
- Describe the calculations necessary to determine the cost of food and beverage sold for a month.
- Discuss transfers, complimentary items, grease sales, steward sales, promotion expense, and employee meals.
- Calculate inventory turnover, and describe its significance to food service managers.
- Describe how computer software can determine employee adherence to standards and standard procedures.
- Employ employee organization, scheduling, and labor management controls.
- Identify the primary purpose of labor control.
- Discuss the difference between variable-cost personnel and fixed-cost personnel.
- Discuss the difference between standard and actual labor costs.
- Calculate prime cost and prime cost percentage.
- Describe considerations of and steps required to schedule employees.
- Discuss performance standards.
- Discuss using computer software to analyze business volume to determine manpower requirements.
- Analyze revenue management in a food service operation.
- Explain the importance of the cost/volume/profit relationship to cost control.
- Solve problems to determine sales in dollars and units, sales history, guest check averages, seat turnover, contribution margin, variable rate, and breakeven analysis.
- Analyze a menu for popularity and profitability.
- Explain how proper product pricing and effective selling can maximize profits.
- Discuss the most common approaches to menu pricing.
- Produce a menu engineering worksheet, and interpret the results.
- Explain how reductions in excessive cost will result in increased gross profits.
- Explain how technology can drive revenue and control costs.
- Construct and manipulate income statements and budgets.
- Practice reading and interpreting the main financial statements in a business.
- Discuss the importance of budgeting.
- Calculate financial information given only dollars or percentages.
- Compare and evaluate variances.
- Create a budget based on historical data, forecasts, and management goals.
- Illustrate and discuss various reports used to obtain information, and compare the information in a current operation period to that of previous periods.
Students must demonstrate proficiency on all CCPOs at a minimal 75 percent level to successfully complete the course. The grade will be determined using the Delaware Tech grading system:
Students should refer to the Student Handbook for information on the Academic Standing Policy, the Academic Integrity Policy, Student Rights and Responsibilities, and other policies relevant to their academic progress.
Calculated using the following weighted average
Percentage of final grade
Quizzes, Exams, (4-6 Equally weighted, Summative)
Class Assignments (Formative)
- Apply clear and effective communication skills.
- Use critical thinking to solve problems.
- Collaborate to achieve a common goal.
- Demonstrate professional and ethical conduct.
- Use information literacy for effective vocational and/or academic research.
- Apply quantitative reasoning and/or scientific inquiry to solve practical problems.
- Utilize management roles and interpersonal skills to lead/manage first level employees in a hospitality setting.
- Prepare food and beverage menus for a variety of hospitality requirements considering price, quality, and selection.
- Utilize knowledge of facilities management to aid in decision making.
- Perform cost calculations and apply to decision making situations pertaining to factors of production.
- Evaluate levels of food safety and sanitation to maintain a safe and sanitary work environment.
- Integrate professional, ethical and legal standards into business practice.
- Employ the various theories of management and marketing in a business.
The College is committed to providing reasonable accommodations for students with disabilities. Students are encouraged to schedule an appointment with the campus Disabilities Support Counselor to request an accommodation needed due to a disability. A listing of campus Disabilities Support Counselors and contact information can be found at the disabilities services web page or visit the campus Advising Center.