Course Number and Title: HRI 212 Food and Beverage Cost Control
In this course, students investigate 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 food and beverage cost problems. (CCC 1, 2, 4; PGC HMT 2, 6, 7; CUL 7)
- Explain the impact of food cost in a food and beverage operation. (CCC 2, 6, 4; PGC HMT 2, 3, 4, 6; CUL 7)
- Consider control techniques used in food and beverage operations. (CCC 1, 2, 3, 4, 6; PGC HMT 1, 2, 4, 6; CUL 2, 3, 7)
- Calculate and interpret food and beverage cost, food and beverage sales, and the value of inventory. (CCC 2, 4, 6; PGC HMT 2, 4, 6; CUL 7)
- Evaluate employee organization, scheduling, and labor management controls. (CCC1, 3, 4; PGC HMT 4, 6, 7; CUL 6)
- Consider revenue management in a food service operation. (CCC 1, 2, 4; PGC HMT 2, 4, 6, 7; CUL 6, 7)
- Construct and manipulate income statements and budgets. (CCC 1, 2, 4; PGC HMT 4, 6, 7; CUL 6, 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 food and beverage cost problems.
- Distinguish among the various types of costs.
- Define the cost-to-sales ratio and cost percentage, and calculate formulas.
- Propose cost saving measures.
- Explain the impact of food cost in a food and beverage operation.
- Prepare 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 have on food cost.
- 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.
- Consider control techniques used in food and beverage operations.
- Illustrate the operating cycle of control.
- Compute quantities to purchase given forecasted needs.
- Employ appropriate terminology such as purchase specifications, purchase order, invoice, standard recipe, and standard portion size.
- Compare and contrast the periodic order method and the perpetual inventory method.
- Recommend the various standards necessary for establishing control over receiving, storing, and issuing food and beverages.
- Prepare a make or buy analysis.
- Analyze 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.
- Evaluate employee organization, scheduling, and labor management controls.
- Identify the primary purpose of labor control.
- Compare and contrast variable-cost and fixed-cost personnel.
- Compare and contrast standard and actual labor costs.
- Calculate prime cost and prime cost percentage.
- Describe considerations of and steps required to schedule employees.
- Consider performance standards.
- Consider revenue management in a food service operation.
- Explain the importance of the cost/volume/profit relationship to cost control.
- Complete a breakeven analysis.
- 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.
- Construct and manipulate income statements and budgets.
- Interpret 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 financial reports used to obtain information, and compare the information in a current operation period to that of previous periods.
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
Summative: Exams (2-4) (Equally weighted)
Formative: Class Assignments, Quizzes, Project Work
Recipes/Cost Cards Project
- 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.
- Perform standard culinary procedures using the appropriate knives, tools, and equipment.
- Explain and apply the basic principles of food sanitation and safety in the work environment.
- Use principles of food preparation to produce a variety of hot and cold food products within realistic time constraints.
- Apply the fundamentals of baking science to the preparation of a variety of products.
- Apply the principles of nutrient needs to menu planning and food preparation.
- Evaluate styles of leadership, and develop skills in human relations and personnel management.
- Apply the principles of facility design, menu planning, and cost controls for ethical and sustainable purchasing, receiving, and storage of food and non-food items.
- Perform dining room service functions, and apply quality customer service.
- Categorize alcoholic and non-alcoholic beverages, and explain laws and procedures related to responsible alcohol service.
- Explain the changing historical, geographical, and cultural relationships of different foods and recipes.
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.