Food Cost Control ( Question & Answers)

QUESTIONS   &  ANSWERS : Chapter 01

Q. 1. What do you mean by Food Cost?  Write in detail the advantages of Food Cost Control.

Answer :  Food Cost is defined as the cost of raw material  used to prepare a dish. Food Cost is one of the major costs of the Restaurant and there is always a risk of food cost going high and low due to the negligence of the staff. If the food cost goes high then the cost of sale will go high resulting in less gross profit . On the other hand if the food cost is low then that means either the guest is given a small portion or he is served sub standard quality of food. Thus result will be subsequently losing permanent customers and hence will reduce sale and profit. So by proper controlling the cost of food, we can assure the profitability , permanent customer and increase in sale volume & profit. 

The main objective and advantage of cost control are as follows  :

a.       Analysis of income and expenditure  of organization.

b.      Establishing and maintaining the standard of service of the establishment.

c.       Pricing of menu

d.      Prevention of waste .

e.      Prevention of frauds .

f.        Prevention of theft and pilferage .

g.       Source of information for management reports .

Q. 2. Define food cost.  Write in detail the limitations of food cost control.

Answer : Food Cost is defined as the cost of raw materials used to prepare a dish. Though it looks very simple that is the standard Recipe and Portion Size Control is followed then the food cost will be always under control but in reality cost may differ . Some of the factors which affects the food Cost are :

1.       Fluctuation in Raw Material Cost:

2.       Wrong Purchasing of Raw Material:

3.       Reduction in Sale:

4.       Wastage during preparation of Food:

5.       Pilferage in Food Sale:

6.       Spoilage due to wrong storage:

Q. 3. Write in detail the methodology and phases of cost controls.

Answer : There are various methods and phase at which Cost Control is done . Some of those are as follows :

(i)     Purchasing  : Purchasing department must ensure that right quality of food at competitive price and right quality is procured.

(ii)   Receiving & Storing of raw materials  : Proper control is essential while receiving the raw materials . The raw materials received by stores must be inspected for the quality and quantity desired . The storekeeper must ensure that in store there should be a place for everything and Everything is placed , so that no food item should get spoiled.

(iii) Issuing  : All goods should be issued after a proper requisition . The rule of First In First Out  (F.I.F.O) must be followed.

(iv)  Production / Wastage Control : The wastage of all level either portioning , cooking , storing  should be as minimum as possible .

(v)    Storing of Cooked Food : In case any cooked food is left at the end of the day then it must be stored at proper temperature so that it can be used on the following day if required.

(vi)  Control while serving Food : Ensure that no food is served without proper KOT .If  Food is allowed to be picked up without proper KOT then this will increase the food cost .

(vii)                         Portion Control : Both the large and smaller portion is harmful to the hotel / restaurant . A large portion will increase the food cost while small portion will dissatisfy the guest and may result in losing them.

(viii)                      Standard Recipe : The objective and advantage of Food Cost Control are to satisfy the guest and make  reasonable good profit at all times. If Standard Recipe is not followed than the guest may not always find similar standard of dish and this will dissatisfy them ,resulting in permanent lose of customer and less sale & profit.

Q. 4. Write in detail the essentials of cost control.

Answer : In the Hotel industry Food Cost is the major portion of the total cost .So in order to assure the profitability of the Hotel and sale more than Break Even Point Sale , food Cost Control is very essential . Food Cost Control is essential for :

a)      Proper Purchasing

b)      Control in Purchasing

c)       In order to follow Purchasing Procedure

d)      To Control Food Production

e)      In order to follow standard recipe and Standard Portion Size

f)       To know total production cost , thus help in fixing the selling price

g)      To regular review of the production , Sale and operating results.

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