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Food and Beverage Management

Food and Beverage Management. Ch 8 Preparing for Production. The Flow of Food. Purchasing Receiving Storing Issuing Tracking and Control. Purchasing. Always purchase from a reputable Supplier

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Food and Beverage Management

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  1. Food and Beverage Management Ch 8 Preparing for Production

  2. The Flow of Food • Purchasing • Receiving • Storing • Issuing • Tracking and Control

  3. Purchasing • Always purchase from a reputable Supplier • An Operation can save or lose money with a Purchasign System – Directly affects the bottom line • Purchase systems include • Requisitions • Purchase orders • Delivery Invoices

  4. Purchasing Flow

  5. Goals of a Purchasing System • Buy the right product • Buy the right amount • Pay the right price • Deal with the right supplier

  6. Buying the Right Product • Develop Purchase specifications • Quality • Size • Weight • Ripeness • Needed for each important item (ex. Filet) • Ex. – 8 up PSMO Choice Filet • Clearly communicated to Suppliers & Receivers

  7. Make or Buy • Convenience Foods – • Prepared off site • Some managers believe that quality is less than on site prep • Might be less costly • May be easier to purchase, receive, store and issue

  8. Make or Buy Analysis Example • Bloody Mary Mix • Purchase in 5 case lots - $31 case for 12 quart bottles • Cost per bottle = $2.45 after 5% discount on bulk purchase • Make on site – • Ingredient cost use standard recipe = $1.81 per quart • Labor Cost = .31 per quart (15 minutes of labor) • Total = $2.12 per quart • On site cost is $.33 cheaper than purchasing ready made

  9. Purchasing the Right Quantity • Cash Flow is adversely affected if inventory levels are too high • Too low – no product means lost sales and unhappy customers

  10. Minimum Maximum Ordering • Uses par levels – the minimum level of stock acceptable • Par Levels are determined by • Lead time quantity – number of units that will be used between the time the replacement stock is ordered and delivered • Safety Stock Level – in case of shortages, spoilage, etc • Get Bids from Several Suppliers

  11. Other Factors in Purchasing Levels • Changing Prices • Available Storage • Storage and handling costs • Waste and Spoilage • Theft • Market Conditions • Quantity discounts • Minimum Order requirements • Transportation and delivery • Order Costs • Freshness -

  12. Paying the Right Price • Get bids from Several Suppliers • Negotiate • Consider lower quality products • Do you really have to buy it? Can it be made better or cheaper on site? • Combine Orders • Re evaluate high cost items, especially things such as garnishes

  13. Paying the Right Price • Pay Cash – use discounts for paying promptly • Speculate on price trends • Change purchase unit size • Be innovative • Use Promotional Discounts • Bypass the supplier

  14. Suppliers • Location • Facility • Financial Stability • Technical Knowledge of the staff • Honesty and fairness • Dependability • Facility Inspections (own and regulatory) • HACCP Programs

  15. Other Concerns • Theft • Track Inventory • Kickbacks • Fictitious Companies • Ethics • Develop standards and policies • Integrity

  16. Receiving • Inspect each delivery against PO • Compare delivered Product against specifications – weights, etc. • Inspect against Delivery invoice • Verify Price per unit (against PO) • Verify math! • If not delivered (or rejected) – get a credit memo (signed!) • Accept Product (or reject) • If needed check temperatures • Check for pests • Store – label and date (for FIFO) • Complete reports (some PO ‘s are also HACCP Records)

  17. Storage • Security includes: • Lockable Storage areas • Precious storage • Limited Access • Effective inventory control procedures • Perpetual inventory system • Central Inventory control • Secure Design • Lighting and monitoring

  18. Quality • Rotate Food Stocks (FIFO) • Store foods at proper temperatures • Clean storage areas frequently • Ensure proper ventilation and air circulation

  19. Recordkeeping • Perpetual Inventory System • Similar to a checkbook • Confirm at regular intervals (use different people) • Physical Inventory System • Typically done once per month • Combination Systems

  20. Reducing Inventory Costs • Carry a smaller amount of inventory • Be sure required levels are correct • Decrease the number of items carried • Refuse to accept early deliveries

  21. Issuing Products • Issue only on proper authority • Depends on system – Perpetual Inventory needs a requisition • Requisitions should be entered daily

  22. Special Beverage Concerns • Typically buy by brand name • House or well brand • Call brand • Premium brands • Laws regarding suppliers vary by state • Laws regarding discounts vary by state • Inventory turnover rates are lower

  23. Special Beverage Concerns • More prone to theft • After received – move immediately to storage • Always use secured storage • Purchasing and receiving tasks should be separated • Issue on a bottle for bottle basis • Mark bottles with dates and times.

  24. Technology and Control • E Commerce – facilitates ordering with suppliers • JIT = Just in Time Inventory systems • Ordering Systems (FoodTrak) (www.foodtrak.com) • Customized software systems integrating recipe cards & purchasing • UPC codes

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