Restaurant Cost Control Objectives

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Questions and Answers

What is the main aim of costing in a food and beverage establishment?

To maximize costs while maintaining quality
To satisfy only the financial requirements
To satisfy both customers' requirements and financial requirements (correct)
To avoid excessive costs at all costs

What is the primary objective of cost control in a food and beverage establishment?

Regulating costs and guarding against excessive costs (correct)
Minimizing quality to reduce costs
Increasing the quantity of products without regard to cost
Sacrificing financial requirements for customer satisfaction

What is one of the principles of cost control mentioned in the text?

Ignoring all areas of cost in the enterprise operations
Standardizing the production method to satisfy guests and secure profit (correct)
Accepting high levels of loss to secure profit
Maximizing overall costs to increase profits

What should managers understand about cost?

Managers should have a deep understanding of all cost and its concepts (B) Signup and view all the answers

What does the objective of F&B Control involve according to the text?

Analysis of income and expenditure related to food & beverage operations (B) Signup and view all the answers

What does the process of cost control involve according to the text?

Involves every step in purchasing, receiving, storing, issuing, preparing food and beverage for sale, training, and scheduling (B) Signup and view all the answers

What is necessary to achieve high performance levels in food and beverage control?

Preventing wastage of materials (B) Signup and view all the answers

Why is it important to have an efficient method of control in food and beverage management?

To cover the complete cycle from preparation to management control (B) Signup and view all the answers

What is one typical area of fraud by customers in food and beverage establishments?

Deliberately walking out without paying (A) Signup and view all the answers

What is a typical area of fraud by staff in food and beverage establishments?

Overcharging for items served (D) Signup and view all the answers

Why is prevention of fraud important in food and beverage management?

To maintain financial integrity and prevent losses (B) Signup and view all the answers

What role does a control system play in providing accurate management information?

An important task in providing accurate management information (C) Signup and view all the answers

What aspects are usually analyzed in terms of revenue for each selling outlet?

Volume of food and beverage sales, sales mix, and number of customers served (A) Signup and view all the answers

How is the performance of each outlet usually expressed?

In terms of gross profit, net margin, and net profit (C) Signup and view all the answers

What is crucial in determining food menu and beverage list prices?

Average customer spending power and competitor pricing (A) Signup and view all the answers

Which activity is essential to achieve performance standards for an establishment?

Setting targets for revenue and cost levels (C) Signup and view all the answers

What should be readily available to all staff in a food and beverage outlet for reference?

Standard Operational Procedures (SOPs) (C) Signup and view all the answers

Why is prevention of waste important in the operation of any food and beverage outlet?

To achieve performance standards and set revenue targets (A) Signup and view all the answers

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Study Notes

Goal of Restaurant Business Owner Cost Control

The main objective of costing in a food and beverage establishment is to satisfy both customer requirements and financial requirements.
To achieve this, a suitable food and beverage control system must be developed to avoid excessive costs without sacrificing quality, quantity, and competitive price.

Principles of Cost Control

Eliminate excessive costs for food and beverage and labor to ensure profit.
Organize and implement purchasing, receiving, and storing systems.
Minimize loss through efficient production.
Standardize production methods to satisfy customers and secure profit levels.

Objective of F&B Control

Analyze income and expenditure related to food and beverage operations.
Analyze revenue by each selling outlet, including volume of food and beverage sales, sales mix, average spending power, and number of customers served.
Analyze departmental food and beverage costs, portion costs, and labor costs.

Establishment and Maintenance of Standards

Establish standards for food and beverage outlet operations.
Set Standard Operational Procedures (SOPS) for staff reference.
Regularly check and analyze standards achieved.
Conduct training courses to re-establish standards when necessary.

Pricing

Determine food menu and beverage list prices based on accurate food and beverage costs and other main establishment costs.
Consider average customer spending power, competitor prices, and market-acceptable prices.

Prevention of Waste

Set targets for revenue, cost levels, and profit margins.
Prevent material waste due to poor preparation, over-production, and failure to use standard recipes.
Implement an efficient method of control to achieve performance standards.

Prevention of Fraud

Prevent or restrict areas of fraud by customers and staff.
Typical areas of fraud by customers include walking out without paying, claiming unsatisfactory food or drink, and disputing bills.
Typical areas of fraud by staff include overcharging or undercharging, and stealing food, drink, or cash.

Management Information

Provide accurate up-to-date information to management.
Enable management to make informed decisions.

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