Foodservice Systems For PSU Enhancement

Foodservice Systems
by
SHERILYN B. BALAURO
Department of Human Nutrition and Foods
Benguet State University
La Trinidad, Benguet
2023 PSU BSND Enhancement

Topic Outline
A. Overview of Foodservice as a System
B. Different Types Of Foodservice And The Flow Of
Food
C. Operational Phases of the Foodservice
D. Organization and Management

OVERVIEW OF THE
FOODSERVICE AS A
SYSTEM

FOODSERVICE SYSTEM
DEFINED
It is made up of
interrelated
activities and
resources grouped
together to
accomplish the AIM
OF PROVIDING
QUALITY MEALS.

THE FOODSERVICE SYSTEM
Elements of the Foodservice System
 External Environment
The external environment is also the end-user of the system’s
output.
The foodservice organization interacts with such groups which

we call “claimants” like customers, suppliers, government,
community, and owners that have needs and expectations to be
answered by the organization.
 Foodservice Input
It is composed of material and immaterial goods that acts as pre-
requisite to production
 Transformation Process
It is composed of the different activities needed to
change the raw inputs into end-results of the
foodservice system.
This involves menu and production planning, mise-en-

place preparation, and actual preparation.
Also included in the in the transformation process is

management as an important function.

Foodservice Output
It is the end result of the use of inputs
changed through the transformation process.
It consists of goods and services that are

provided to customers and other claimants in the
external environment.
It should include quality products, efficient and
friendly service, proper nutrition, safe products,
and profit.

 Communication, Feedback, and Control System
This ensures that the needs of the external
environment as well as the requirements of the
internal environment are correctly matched and
executed.
It can include simple systems like the physical

inventory of stocks and customer satisfaction
surveys or it can be as complex as the use of
database gathered or bought over time and
stored in computers as part of the
establishment’s MIS (Management Information
System)
Work System
It is the internal environment where the task
are to be accomplished.
It includes the “work area”, which is the physical
facility where the task is to be done.
It also include the less tangible aspects of the
work environment such as temperature, humidity,
illumination, work processes and procedures, as well
as social interactions among workers.
The study of the work system covers an
extensive area that includes ergonomics, time and
motion studies, and work simplification.

CHECK YOUR MEMORY
Fill in the blanks .
1. The _______________________ is the internal environment where
the task are to be accomplished.
2. The entire process of gathering inputs and changing them into
outputs must be connected through __________________,
_________________, and _______________ system.
3. ___________________ are the end result of using the inputs and
changing them through the transformation process.
4. _____________________, _______________, and
________________ are examples of claimants in the external
environment.
5. __________________________, ___________________ and
_______________ are examples of the output of the foodservice
system.

FOODSERVICE SYSTEM
DIFFERENT TYPES OF
FOODSERVICE AND THE
FLOW OF FOOD

Flow of Food
 Alternate paths that food and menu
items may follow
 Initiating with receiving & ending with
service to the customer
 Aimed at increasing productivity,
decreasing cost, or strengthening
control of operations
 Changes occurring in food
throughout all stages must be
controlled to ensure quality & safety
of finished products
Flow of Food

Types of Foodservices
 Four (4) types of foodservice
operations
 Conventional or traditional
 Ready prepared
 Commissary
 Assembly / serve

Conventional Foodservice
 Foods are purchased in various
stages of preparation for individual
operation
 Production, distribution, & service are
completed on same premises
 Following production, foods are held
hot or refrigerated to be served as
soon as possible


 Menu items are prepared near to
service time to assure quality
 Hot-holding conditions affected by
temperature, humidity, & length of
holding time

 May be distributed to adjacent or
nearby serving area (cafeteria or
dining room)
 Hospitals or healthcare facilities –
food served on trays
 Centralized service
 Decentralized service

Food Delivery Systems
 Centralized Delivery-Service System
 Prepared foods portioned and
assembled for individual meals at a
central location in or adjacent to the
main kitchen
 Completed orders then transported and
distributed to the customers
 Fast food, restaurants, banquet
services, hospitals, long-term care
facilities

Food Delivery Systems
 Decentralized Delivery-Service
Systems
 Bulk quantities of prepared foods sent
hot or cold to serving galleys or ward
kitchens located throughout the facility
 Reheating, portioning and meal
assembly take place in remote
locations
 Foods travel better in bulk than plated
 Large hospitals, medical centers, school
districts, hotels

Kitchen Layout for Conventional
Type of Foodservice

Ready Prepared Foodservice
 Menu items produced & chilled or
frozen until heated for service later
 Produced for inventory &
subsequent withdrawal
 Readily available at any time for
final assembly & heating for service

Ready
Prepared
Foodservice

 Cook-chill – partially cooked, rapidly
chilled, held in chilled storage, &
reheated just prior to service
 Use remains limited throughout
industry
 Cook-freeze - partially cooked,
rapidly frozen, held in freezer
storage, & reheated just prior to
service
 Frozen from 2 weeks to 3 months
 Sous vide – sealing raw, fresh food
items in plastic pouches to allow
chilled storage & then cooking in
boiling water prior to service

 Special recipe formulations needed
because of changes during chilling
or freezing of food
 Development of off-flavors may be
problem; controlled by
 Substituting stable ingredients
 Greater control of storage time,
temperature, & packaging
 Adding stabilizers

 Production designed to meet future
rather than immediate needs
 Production personnel can be
scheduled for regular hours (no
early/late shifts)
 Does not require as many highly
skilled employees

Commissary Foodservice
 Centralized procurement &
production facilities with distribution
of prepared menu items to several
remote areas for final preparation &
service
 Menu items delivered hot or
cold/hold & served, some chill or
freeze

 Foods purchased have little or no
processing
 Generally purchased in large quantities
 Operational advantages include
centralized receiving, storage, &
inventory control

 Large central units designed like
food industry operations
 Require major modifications of
recipes & food preparation
techniques
 Menu items may be stored in bulk
or in individual portions

 Packaging & storage challenging
 Various packaging materials used
 Such as individual pouches or
disposable serving dishes
 Specialized equipment required for
packaging, storing, & distributing
 Preserving microbiological,
nutritional, & sensory qualities
during holding and heating can be
problem
 Adopted in operations in which
service centers are remote from
production unit
 Reduce duplication of production,
labor, & equipment
 Especially suitable for unique
situations
 Long been used in schools

Assembly / Serve Foodservice
 Purchased pre-prepared & require
minimal cooking before service
 Food products brought into
operation with maximum degree of
processing
 Fresh, frozen, & dried items
 Only storage, assembly, heating, &
service functions commonly
performed in these foodservices
 Reduces labor and equipment costs

 3 market forms of foods
predominantly used in these
foodservice operations
 Bulk – requires portioning before or
after heating within foodservice
operation
 Proportioned – requires assembly &
heating
 Preplated – require only heating for
distribution & service, most easily
handled
 Patient trays are assembled & food
items reheated in gallery before
service
 Eliminates need for central kitchen
 Combination of foods is used, some
requiring limited degree of processing
& others requiring none
 Partially prepared foods – often add
other ingredients before heating or
cooling
 Completely processed foods may be
 Offers easy solution to labor &
production problems
 Readily available supply of highly
processed, high-quality food
products is a prerequisite for a
successful assembly/serve operation
 Special diet modifications can be
problem

Test yourself by identifying the foodservice system/operation shown in the picture. Write
your answer beside the photo.
University Cafeteria
1.
__________________________
____
Country Club Dining
2.
__________________________
____
Hospital Dietary Unit
3.
__________________________
____

4.
__________________________
____
Theatre Dining
5.
__________________________
____
6.
__________________________
____
7.
__________________________
____

8.
__________________________
____
Sports Bar
9.
__________________________
____
Food Park
10.
__________________________
___

Institutional Menu
Planning
A. Types of Menu
B. Menu Analysis and Evaluation

A. Factors to Consider in Menu Planning
Physical Factors Patron & Artistic Consideration
Equipment & Facilities

Guest Expectations
Labor, Skill, & Time Available
Taste, Variety, Complexity
Profit & Financial The

Considerations Appearance,
Perfect Temperature,
Texture,
Product Availability & Quality Menu Consistency &
Flavor
Nutrition & Physiology
Time & Seasonal Considerations

Sa isang pag-uusap…
Anak: Tay, ano ang difference ng dinner at

supper?
Tatay: Kung kumain tayo sa labas, nad-

dinner tayo. Kung kumain tayo ng luto ng
nanay mo…nag-suffer tayo!

MENU TYPES
A. Based on Pricing
1. A la carte
-offers food items separately at a separate price
-contains large selection of food items
-popular in commercial operations due to high profitability
provided food spoilage are minimal
2. Semi ala carte
-combination of items and pricing them as one (maindish and
soup or salad)
3. Table d’hote
-groups food items together at a single price
-directly opposite of the ala carte, offers fixed menu
- appeals to customers unfamiliar w/ the cuisine offered
- limited production of entrees

B. Based on Extent of Selection
1. Selective
2. Semi-selective
3. Non-selective
C. Based on Frequency of Use
1. Du jour
-means menu for the day, especially planned for a certain day
-convenient ways of utilizing leftovers and food bargains
-provide varied menus for regular clientele
-requires a more creative & experienced chef
2. Single use
3. Cycle
-several menus offered in rotation
-benefits: gives personnel greater knowledge of production and
quality requirements, more opportunity for better planning
-must be flexible to include leftovers or account for occasional
unavailability of certain foods

Others/ Special Menu
1. English/holiday
2. Formal menu
3. Festive menu
4. Commercial
5. Club-special menu for specific group of people
6. Continental-bread & butter, coffee
7. California-menu does not change, used during
the entire period the place is open; many hotel
room services menus are based on this design

MENU ANALYSIS PROCEDURES

• Popularity Index- shows the percentage
popularity of one menu item in comparison with
other items.
• Menu Count- assesses the acceptability or
popularity of menu items by tracking the number
of proportions sold per menu item on hourly or
daily basis.
• Expert Evaluation- cautious examination
conducted by experts using a given pre-
determined set of criteria.

• Menu Engineering- menu analysis is conducted
based on the relationship of profit and volume.
a) Mean Mix percentage(MM%): sales of

all items on the menu is compared with a mean
achievement target; it is usually 90% of the
average sales of all menu items.

• High-rating given if the mean mix
percentage is higher than the mean
achievement target; the best selling items
• Low-rating given if the mean mix
percentage is lower than the mean
achievement target; poor selling items

b) Contribution Margin-statistical analysis of
satisfaction of each menu item that will
generate categorization of the menu item's
popularity relative to its financial
contribution.

Rating are as follows:
> Low profitability, low popularity-menu items need
to be discontinued
> High profitability, high popularity- menu items rated
in this category should be retained
> Low profitability, high popularity-need careful
consideration before determining which of these items will be
retained or removed
> High profitability, low popularity- need careful
consideration before determining which of these items will be
retained or removed.

MENU ENGINEERING:
Definition and Process
Definition
Menu engineering is the study of the
profitability and popularity of menu
items and how these two factors
influence the placement of these
items on a menu.
(https://www.menucoverdepot.com/resource-center/articl
es/restaurant-menu-engineering/)

Most restaurants improve
profits by 2 to 10 percent
from a reengineered
menu. (Restaurants USA)
Process: Evaluating Menu Profitability
How to Evaluate Menu Profitability?
1. Calculate each menu item’s contribution margin or the
menu price less the total cost of
ingredients.
2. Divide the sum of all contribution margins
by the number of items on your menu.
This calculates the average contribution
margin.
• Items above the average
contribution margin are
considered “high profitability”,
while items below the average
are considered “low profitability”.

Example
Recipes Food Cost Selling Price Contribution
Margin
Fried Chicken P 28.75/serving P 83.00 P 54.25
Mixed Seafood P 103.50/serving P 296.00 P 192.50
US Sirloin P 175/serving P 500.00 P 325.00
Pork Humba P 63.78/serving P 183.00 P 119.22
Beef Steak P 115/serving P 329.00 P 214.00
Total P 904.97
Average Contribution Margin: P 180.994

Evaluating Menu Profitability
Average Contribution Margin: P 180.994
Recipes Food Cost Selling Price Contribution Profitability
Margin
Fried Chicken P 28.75/serving P 83.00 P 54.25 Low
Profitability
Mixed Seafood P P 296.00 P 192.50 High
103.50/serving Profitability
US Sirloin P 175/serving P 500.00 P 325.00 High
profitability
Pork Humba P 63.78/serving P 183.00 P 119.22 Low
Profitability
Beef Steak P 115/serving P 329.00 P 214.00 High
Profitability

Determining Popularity
1. Divide 1 by the total number of menu items you
offer. For example, if you have ten menu items, the
average popularity is .1 or 10 percent.
2. Look at your sales and assess if each item is high or
low in popularity. In the example above, a menu
item can be considered popular if it represents
more than 10 percent of sales.

Determining Popularity
Example
Average Popularity: 20%
Recipes No. of Servings Popularity Index Popularity
Sold
Fried Chicken 86 29% High Popularity
Mixed Seafood 44 15% Low Popularity
US Sirloin 17 6% Low Popularity
Pork Humba 78 27% High Popularity
Beef Steak 69 23% High Popularity
Total 294 100%

Identifying your stars, plow horses, puzzles and dogs
• Stars: High in profitability, High in
popularity
• Plow horses: Low in profitability, High in
popularity
• Puzzles: High in profitability, Low in
popularity
• Dogs: Low in profitability, Low in
popularity
Identifying the Menu Items That are Contributing the Most
of Your Sales
Example
Fried Chicken Low Profitability
High Popularity
Mixed Seafood High profitability
Low Popularity
US Sirloin Low Profit
Low Popularity
Pork Humba Low Profit
High Popularity
Beef Steak High Profit
High Popularity
Fried Chicken Low Profitability Plowhorse
High Popularity
Mixed Seafood High profitability Puzzle

Low Popularity
US Sirloin Low Profit Dog

Low Popularity
Pork Humba Low Profit Plowhorse

High Popularity
Beef Steak High Profit Star

High Popularity
Finding Your Stars
• Stars- Stars are simple. These are the dishes

that deserve special attention. Highlight with a
photo or by graphical element.
• Plow horses- These are the crowd-pleasers.
They are in demand by customers but do little
for your bottom line. Give plowhorses lower
visibility on your menu.

Finding Your Stars
• Puzzles- For some reason, Puzzles aren’t selling.

Try giving them greater visibility on your menu.
• Dogs- Dogs are a challenge. They can’t all be
dropped, because they may be a menu
essential, like children’s mac ‘n’ cheese or
chicken tenders.
You can rebrand each Dog---a new name or
flashy description.
Guests will spend an
average of 109 seconds
looking at your menu.

Practice…practice din pag may time!
Practice
1. A restaurant has been operating for nearly ten years in a busy corner of Baguio City’s
central business area. The owner became a little worried over their sales since popular and
quick-service restaurants are emerging and some patrons rarely visit the restaurant. The
owner then sought the suggestions of other foodservice business operators as well as
experts who will evaluate their menu. Your task:
a. Determine the profitability of some of their entrees by establishing first the
contribution margin. Compute below and fill-up table 3 and table 4.
Average Contribution Margin: _________________
Table 3. Contribution Margin
Recipe/Menu Cost per serving Selling Price Contribution Margin

Chicken Cordon P 118.25 P 155.00
Blue
Steamed Ginger P 102.50 P 140.00
Chicken
Pork Pot Roast P 233.25 P 299.00
T-Bone Steak P 303.00 P 399.00
Grilled Pork P 225.55 P 260.00
Tenderloin
Total
Table 4. Menu Profitability
Recipe Cost Selling Price Contribution Profitability

Margin
Chicken Cordon P 118.25 P 155.00 P 36.75
Blue
Steamed Ginger P 102.50 P 140.00 37.50
Chicken
Pork Pot Roast P 233.25 P 299.00 65.75
T-Bone Steak P 303.00 P 399.00 96.00
Grilled Pork P 225.55 P 260.00 34.45
Tenderloin
b. Determine menu popularity by computing the average menu popularity below and then fill-
up table 5.
Average menu popularity:
Table 5. Menu Popularity
Recipes No. of Items Sold Popularity Index Popularity

Chicken Cordon Blue 68
Steamed Ginger Chicken 79
Pork Pot Roast 55
T-Bone Steak 87
Grilled Pork Tenderloin 91
Total 380
Procedures in Calculating Prices
a. Get the total cost of the recipe. Add buffer margin when
necessary
b. Determine the food cost budget and the mark up factor
The food cost percentage can vary, depending on
the desired mark up. Fine dining that cater to high income
group can have a food cost percentage ranging from 30-
35% of the selling price, casual dining usually follow a 40-
45% food cost ratio and canteen can go as high as 50-55%
if the cost of the operation is low.
c. Once the cost of the recipe and the food cost budget is
determined, get the price using any of the two methods
as follows
Cost Percentage Method, using the formula:
Selling price= materials cost (or cost of ingredients) divided by
desired food cost %
Example: If the cost of ingredients (raw materials) for one portion of pork
adobo is P30.00 and the desired food cost percentage of 40%, then the
selling price will be computed as follows;
P 30.00 = P 75.00
.40
If a buffer margin is considered the selling price will be computed as
P 30.00 + P 3.00 ( 10% buffer) = P 33.00
40
= P 82.50

Mark up factor method, computed as
Selling price=material cost X mark up factor
Where: Mark up factor is equal to 100% divided by the desired
food cost %
If desired food cost % is 40%, the mark-up factor will be : 100 = 2.5
40
The selling price of pork adobo in the above example will be:
SP= P 33.00 (with buffer) x 2.50 = P 82.50

PURCHASING
• Purchasing primarily involves obtaining the right kind
and the right amount of food at the right time, at the
right place and from the right source.

Types of Purchasing
A. Centralized Purchasing
 a purchasing department is responsible for obtaining needed supplies and equipment for
all units in the organization
 used in many large organizations, including universities, schools, multiple-unit
restaurants, and hospitals
 The authority to buy some product, such as fresh produce or other perishables may
be delegated to the foodservice, or in multiple-unit organizations to the individual units.
 Potential disadvantage of centralized purchasing is friction can develop between the
purchasing department and the foodservice unit if there is not a clear understanding of
decision-making authority, especially on quality standards.
B. Group or Cooperative Purchasing
• Beneficial for buyers to increase volume and lower service requirements to improve
leverage with supplies, and thus, buy at lower prices.
• Group buying differs from central purchasing in that members of the group are
independent organizations and are not under the same management.

Methods of Purchasing
A. Informal or open-Market Buying
• Commonly used method of buying, especially in smaller foodservice

operations.
• Systems involves ordering needed food and supplies from a selected list of
vendors based on daily, weekly, or monthly price quotations.
• Prices are based on a set of specifications furnished to interested vendors.
B. Formal Competitive Bid Buying
• In formal competitive bid buying, written specifications and estimated

quantities needed are submitted to vendors with an invitation for them to
quote prices, within a stated time, for the items listed.
• Request for bids can be quite formal and advertised in the newspaper, and
copies can be printed and widely distributed, or the request can be less
formal with single copies supplied to interested vendors.
• Bids are opened on a designated date, and the contract is generally
awarded with the best price and quality.
2. Prime Vending
 The method involves a formal agreement (secured through a bid or informally)
with a single vendor to supply the majority of product needs.
 Primary advantages of the method are: (1) reduced prices, which are realized
through high volume and time savings. Time savings results from not having to fulfill
administrative and accounting requirements for numerous vendors. (2) Development of a
strong, professional partnership with the vendor and the potential for value-added
services such as computer software for submitting and tracking orders.
3. Blanket Purchase Agreement
 Vendors agree to furnish –on a “charge account” basis—such supplies may be
ordered during stated period of time.
 BPAs should be established with more than one vendor so that delivery orders
can be placed with the firm offering the best price.
 Use more than one vendor also allows the buyer to identify a “price creep”,
which can occur when only one vendor is involved.
4. Just-in-Time Purchasing
 An inventory and production planning strategy where the product is purchased
in the exact quantities required for a specific production run and delivered “just-in-time”
to meet the production demand.
 The goal is to have as little product in inventory for as little time as possible in
an effort to maximize cash flow.
Food Storage
A. Types of Storage facilities
B. How to Store Specific Foods

Forborne Infection vs. Foodborne Intoxication
Foodborne Infection
Illness that results from ingesting foods
containing live microorganisms.
Foodborne Intoxication
Illness that results from eating food containing
toxins produced by bacteria or molds present
in the food.

Microorganisms Causing Foodborne Infections
A. Salmonellae infections
> account for numerous cases of gastrointestinal disorders
three most common: S. enteriditis, S. typhimurium, S.
heidelberg
> intestinal tract of animals and humans is the principal
reservoir
> excreted in the feces and can contaminate food and water if
personal hygiene and proper handling are not practiced
> primary sources: poultry, poultry products, beef, pork, and
eggs and egg-containing foods
> proper cooking will kill salmonella, but cross contamination
of cooked foods with raw foods must be avoided

B. Campylobacter jejuni
> transmitted by the consumption of raw milk,
contaminated water, undercooked chicken,
beef, pork, and raw clams.
> cross contamination from knives or cutting
boards may be another cause of contamination
> readily killed by heat and is highly sensitive to
chlorine-containing sanitizers

C. Escherichia coli
> found in the feces of humans and other animals, and
so may contaminate soil, water, and food plants
> illnesses caused by E. coli range from “traveler’s
diarrhea” to life-threatening hemolytic uremic syndrome
> organism is easily killed by heat, but foods that has
been heat-processed can be contaminated after heating,
and improper refrigeration and temperature control can
result in the organism increasing in numbers

Microorganism Causing Foodborne Intoxication
A. Staphylococcus aureus
> most frequent type of foodborne intoxication, results
from toxin production by S. aureus in high-protein menu
items such as cooked meats, eggs, and milk as well as
cream pie.
> commonly found on the human skin and is abundantly
present in pimples and suppurating wounds
> many people without skin problems carry the organism,
with the nose being the most common site.
> S.aureus is not destroyed by cooking techniques
commonly employed in food preparation, so refrigerated
temperature control is critical
Major Points of Control of this Hazard:
1. train employees to avoid hand contact with
the face, and wash hands after such contact
occurs
2. exclude from work any employee with
pimples, pus pockets, or suppurating wounds
so that contamination of food may be avoided
3. refrigerate foods that could support S.
aureus growth & toxin production
B. Clostridium botulinum
> a spore-forming organism that causes a far more
serious food intoxication known as botulism
> food supporting growth of C. botulinum does not
always show noticeable changes from normal
> toxin can be destroyed by boiling vigorously for 20
minutes, although this step is not recommended as
sole method for preventing botulism
> botulism is an uncommon occurrence in foodservice
operations
C. Clostridium perfringens
> found widely distributed in soil, water, dust, sewage,
and manure, and is also found in the intestinal tracts of
human and healthy animals
> food purchased by foodservices , especially meats
and some spices are probably contaminated with this
organism
> foodservice workers may carry this organism into the
kitchen on their hands
> one food handling error often associated with illness
caused by C. perfringens is slow cooling of large
batches of high-protein foods such as roasts, stews,
and gravy
Types of Storage
DRY STORAGE
• Self storage has one kind of
food storage known as Dry
Storage.
• Dry Storage is for ‘dry’ foods
which have a long shelf life and
they can be kept at room
temperature.
• Examples of such foods are
flour, tea, coffee, dried pasta,
sugar, canned foods, biscuits,
rice and other uncooked grains.

COLD STORAGE
•  The other self storage type is cold storage.
•  Cold storage is for foods that must be kept
in the refrigerator or cool room below 5.c.

FROZEN STORAGE
• The frozen storage is used to store foods
which need to be kept frozen solid at -15.c or
colder.

General Storage Guidelines
• Label Food
• Potentially hazardous, ready-to-eat food
prepared on-site must contain a label that
includes:
– The name of the food
– The date by which it should be sold,
consumed or discarded

• Rotate products to ensure the oldest inventory
is used first
• One way to rotate products is
to follow FIFO:
– Identify the use-by or expiration
date of products
– Shelve products with the earliest
dates in front of those with later dates
– Use products stored in front first
• Deplete stored product
on a regular basis
• If product is not sold or consumed by a
predetermined date:
– Throw it out
– Clean and sanitize the container
– Refill the container with new product

• Discard food that has passed the
manufacturer’s expiration date
• Potentially hazardous, ready-to-eat food
that was prepared in-house:
– Can be stored for 7 days at 41°F (5°C) or
lower
– Must be thrown out after 7 days

• Transfer food between
containers properly
• If food is removed from its original
package:
– Put it in a clean, sanitized container
– Cover it
– Label the container with:
• The name of the food
• The original use-by or expiration date

• Keep potentially hazardous food out of the
temperature danger zone
– Store deliveries after inspection
– Take out only as much food
as can be prepared at one time
– Put prepared food away
until needed
– Properly cool and store cooked
food when it’s no longer needed

Check temperatures of
stored food and storage areas
Photo courtesy of Roger Bonafield and Dingbats

• Store food in designated
storage areas
• Do not store food:
– Near chemicals or cleaning
supplies
– In restrooms
– In locker rooms
Never store food near chemicals
– In janitor closets or cleaning supplies
– In furnace rooms
– Under stairways or pipes
• Keep all storage areas clean and dry
– Clean up spills immediately
– Clean dollies, carts, transporters, and
trays often

Refrigerated Storage
• Refrigerated Storage
– Used to hold
potentially
hazardous food at 41°F
(5°C) or lower
– Slows the growth of
microorganisms

Refrigerated Storage Guidelines
• Set refrigerators to the
proper temperature
– The setting must keep the
food at an internal temperature
of 41°F (5°C) or lower

• Monitor food temperature regularly
– Randomly sample the
internal temperature of
stored food with a
calibrated thermometer

• Do not overload refrigerators
• Storing too many products:
– Prevents good airflow
– Makes units work harder
Overloaded refrigerator
• Use open shelving in the unit
• Lining shelving with the following
restricts air circulation:
– Aluminum foil
– Sheet pans
– Paper

• Never place hot food in refrigerators
– This can warm the interior
and put other food into the
temperature danger zone

• Keep refrigerator doors closed as
much as possible
– Frequent opening lets warm air
inside
• Use cold curtains to help maintain
temperatures

• Store raw meat, poultry, and fish:
– Separately from cooked and
ready-to-eat food
OR
– Below cooked and

ready-to-eat food
Improper Storage

• Wrap food properly
– Leaving it uncovered can lead to cross-contamination

Apply Your Knowledge: Load the Fridge
• Store each item on the proper storage shelf
2 Cooked and
A Whole, raw meat C ready-to-eat food
B Raw poultry D Raw ground meat

7-21
Frozen Storage Guidelines
• When storing food in freezers:
– Keep freezers at a temperature that will keep
products frozen
– Check freezer temperatures regularly
– Place deliveries in freezers as soon as
they have been inspected
– Clearly label frozen food that was
prepared on site

Dry Storage Guidelines
• Keep storerooms:
• Cool (50°F to 70°F [10°C
to 21°C])
• Dry (50% to 60%
humidity)
• Well ventilated
• Clean

Dry Storage Guidelines
• When storing food in
dry storage keep it:
– Away from walls
– Out of direct sunlight
– At least 6” (15 cm)
off the
floor

Storing Meat
• When storing fresh meat:
– Store it at an internal temperature
– Wrap it in airtight, moisture-proof material
OR
– Place it in a clean, sanitized container

Storing Poultry
• When storing fresh poultry:
– Store ice-packed product as is
in self-draining containers
• Change the ice often
• Clean and sanitize the
container regularly

Storing Fish
• When storing fresh fish:
– Store ice-packed product as is
in self-draining containers
– Keep fillets and steaks in original packaging
– Store frozen fish in moisture-proof wrapping

Storing Eggs and Egg Products
• Shell Eggs:
– Store at an air temperature
– Keep eggs in refrigerated
storage until used
– Use eggs within 4-5 weeks of
packing date
• Liquid Eggs:
– Store according to manufacturer’s
recommendations
– Keep in refrigerated storage until used
• Dried Eggs:
– Store product in a dry, cool storeroom

Storing Shellfish
• When storing shellfish:
– Store alive at an air temperature
– Store in original containers
– Keep shellstock tags on file for
90 days from the harvest date
of the shellfish
– Obtain a variance if storing shellfish in
a display tank prior to service

Storing Dairy
• When storing dairy:
– Store fresh at 41°F (5°C) or lower
– Follow FIFO
– Discard product that has passed
use-by or expiration dates

Storing Produce
• When storing fresh produce:
– Storage temperatures will vary by
product
– Product packed on ice can be stored
as is
– Do not wash product prior to storage
– When soaking or storing product in
standing water or an ice water slurry:
• Do not mix different items
• Do not mix multiple batches
of the same item

Apply Your Knowledge: What’s Wrong With This Picture?
• Find the unsafe storage practices in this picture:

7-32
RECEIVING
Definition: In foodservice operations, receiving

means, inspecting the products and taking legal
ownership and physical possession of the items
ordered. (A trained personnel on receiving
procedures perform this activities)
Purpose: To ensure that food and supplies
delivered match established quality and quantity
specifications.
Location: closes to the back door when the
product arrives.
•Space and Equipment:
1. Sufficient space to allow proper
review of incoming products
2. Accurate weighing scales
3. Sink for cleaning soiled products
4. Adequate space for weighing and
sorting
Receiving Policies and Procedures
1. No item will be received without a

duly approved purchase order
and/or market list as reference.
2. All delivered items shall be
recorded by the receiving clerk in a
Receiving Record then summarized
in a receiving summary.

Receiving
• All establishments must have set down procedures for receiving,

checking and accepting goods
• These goods must be checked against the purchase specification.
• The procedures involved in checking goods delivered will vary in
different establishments
• The receiver of the goods needs to be competent and have
knowledge of purchase specifications.

What to Check
• SPS
• Quantity
• Quality
• Price
• Date of Expiry
• Freshness of Vegetables etc.

Functions of the Receiving Dept
• Aware of the commodities ordered .
• Inspection and receiving procedures should be completed in

a reasonable amount of time.
• Experience receiving personals
• Receiving personnel should know the time and temperature

at which different products may be stored.
• They should also know the shelf life of various commodities.
• It is advisable to have this information as wall charts and on

the other easily understood illustrations.
Cont..
• Receivers should also be aware of specifications, description of
terms, weights and measures
• Receiver should have a copy of invoice or the delivery ticket
• The purchasing department should be promptly informed of

any items that were not delivered
• If possible, the deliveries should be scheduled in such a way

that there is even and smooth transfer of goods.
• Too many shipments at one time will interfere with adequate

receiving and may result in food spoilage and other losses.

Receiving Flow Chart
• Be ready for the delivery.
• Check the merchandise.
• Weigh each item separately. (Ice & Water consideration)
• Weigh meat orders separately
• Tag meat on delivery.
• Check for quality
• Check for price.
• Check for expiry date & manufacturing date.
• Check for leakage & damage
• Store items properly. 2023 PSU BSND Enhancement

Document by Supplier
•Advice Note-Advice notes are sent to the purchaser,

informing him that goods ordered have been dispatched, giving the
date of dispatch and method of carriage used. eg. Post, rail etc. Most
suppliers on a regular basis do not use these procedures; the most
common would be for equipment or deliveries of high value.

Delivery Note
• Sent by the supplier to the purchaser accompanying the goods

ordered.
• The goods must be checked against delivery notes and then signed
for.
• The delivery note should be in duplicate one copy for the purchaser
and another for the supplier.

Format- Delivery Note
XYZ Whole Sale Supplier
Date
To Purchaser order No.
Hotel ABC Delivery Note No.
S. No. Items SPS Qty Unit Price Checked
Goods Received By

INVOICE
The supplier sends an invoice to the purchaser

usually a few days after delivery has been made and
accepted, giving financial details of the transaction
(bill). Some suppliers will incorporate the invoice
with the delivery note to minimize their paper work.

Format- Invoice
XYZ Whole Sale Supplier
Date
To Purchaser order No.
Hotel ABC Invoice No.
S. No. Items SPS Qty Unit Price Total Cost
Total
Less Discount
Sales Tax
Signature of Supplier Grand Total
REQUEST FOR CREDIT
MEMORANDUM
REQUEST FOR CREDIT MEMORANDUM is

made up by the receiver when the goods
have to be returned. It is signed by the
delivery driver, who takes the duplicate
copy back to the supplier as proof that the
goods were sent back. The supplier will
subsequently issue a credit invoice.

Format- Request for Credit
Memorandum
Hotel ABC
Date
To S No.
XYZ Supplier
Please issue credit memo for items listed below
S. No. Items SPS Qty Unit Price Total
Reason- Liver not found Satisfactory

Fish is Smelling
Beef not delivered but invoiced
F&B Controller Accounting Department Van Driver Requested by

Credit Note
 These are advices to clients, setting out allowances made

for goods returned or adjustments. They should also be
issued when crates, boxes or containers are returned. Credit
note is exactly the same form as invoices except the word
“credit note” appears in place of the word invoice.
 To make them more easily distinguishable they are usually

printed in red, whereas invoices are always printed in black.
 A credit note should be sent as soon as it is known that a

client is entitled to the credit of the sum with which he has
been previously charged by invoice.

RECORDS MAINTAINED IN RECEIVING
DEPARTMENT
•Goods Received Book
•Daily Food Receiving Report

Goods Received Book
• Large establishments will have their own goods received

documentation, either in the form of notes or books
specifically designated to meet their own needs. The
information contained on such documents needs to include
the following
• Date of delivery
• Name of supplier
• Order No.
• Delivery note no.
• Space for comments as to any variances in quantity and
quality.
• Signature of the receiver
Format- Goods Received Book
Goods Received Book

ABC Hotel Date
Delivery Supplier Dry Meat Poultry Fish Main Staff

note no. Store Kitchen Kitchen
Signature of Receiving Clerk

RECEIVING CLERK’S DAILY REPORT
• It is prepared in duplicate for F & B Control verification.
• The receiving clerk from invoices received with goods

purchased and delivered that day completes daily food
receiving report at the end of each day.
• This report summarizes all daily food deliveries to the

establishment. The main purpose of daily report of food
received is to summarize purchase for that day.
• However, this daily report can themselves be summarized

each day by transfixing the column totals to a receiving
report summary.
Format- Receiving Clerk’s Daily Report
Receiving Clerk’s Daily Report

No. _________
Date ________
Items SPS Quantity Unit price Total Distribution
Main Store Sundries

Kitchen
Total
Signature of Receiving Clerk

Beverage Receiving Report
HOTELS ABC
BEVERAGE RECEIVING REPORT(WEEKLY)
Week ending March 9 Date ____________
Supplier Wine Whisky Brandy Beer Invoice Total
Atlantis 215 230 230
Haig 400 400
Shaw Wallace 500 250 750
Total 215 400 500 480 1380

Meat Tag
Hotel ABC
Food Copy
Item Name- Beef No. 2215

Cut Rib
Total Cut 22Kg
Cost/ Unit 200/-
Total Cost 4400/-
Supplier XYZ
Date Received 10/02/10
Date Issued 25/02/10

Meat Tag
Hotel ABC
Food & Beverage Control Copy
Item Name- Beef No. 2215

Cut Rib
Total Cut 22Kg
Cost/ Unit 200/-
Total Cost 4400/-
Supplier XYZ
Date Received 10/02/10
Date Issued 25/02/10

ADVANTAGES OF MEAT TAG
• Facilitation and supplementation of inventory records and the

checking process.
• Shortage and discrepancies- Check
• Assurance of checking procedures.
• Assists the FIFO procedures.
• Reweighing is eliminated.
• It helps in the calculation of meat costs per day.
• It helps in comparative evaluation of meat.
• It helps for reordering of stock.
• It aids in tracing the origin of meat in case of problem.
• It helps to keep a strict control in general.
• Receiving stamp to be affixed on invoice.
• Items are send to respective storage areas.
Methods of Receiving
• Invoice Receiving
Invoice Receiving is a frequently used and more traditional
method. The clerk checks the delivered items against the original
purchase order and takes note of any deviations.
• Blind Receiving
Blind method involves providing an invoice or purchase
order. The clerk will quantify each item by weighing, measuring or
counting, and recording. The blind document is compared with the
original order.

QUANTITY FOOD
PRODUCTION

What is quantity food production?
 It is an organized group of workers
using special equipment and facilities to
produce food for the consumption of
others.
 It requires a complex and efficient
organization as well as specialized
knowledge, skills and equipment.
 It is also called institutional food
production.

What makes quantity production
different?
 Volume: Regular production may vary
from 25, 50, 100, 200 or more.
 Organization: It requires workers that
are skilled and knowledgeable in the
different aspects of food production.
 Mode of operation: It requires
specialized knowledge such as
recipe quantification, proper
production planning and use of
specialized equipment that could
handle large2023volumes of production.
PSU BSND Enhancement
Objectives of Quantity Food
Production
Conserve the nutritive value of food.
Improve digestibility of food.
Develop and enhance flavor and

palatability.
Destroy harmful microorganisms.
Minimize quality losses.

Trends in Quantity Food
Production
Nutrition as a trendsetter

 Information technology as a
trendsetter

 Freezing, storage, packaging
technology as trendsetter

 Environmental renewal as a
trendsetter

Convenience food as a trendsetter

Quantity Food Production
Principles and Techniques
 Prevent Nutrient Losses
- Follow good marketing procedures
- Store foods at proper temperature
- Avoid long storage periods
- Shorten pre-preparation time
- Use careful preparation methods
- Shorten post-stove time
- Avoid left over

Prevent Quality Losses
- Control color changes

- Avoid development of off flavors
- Flavors may be accentuated and
improved
- Control texture and consistency
changes

Control Temperature Changes
- Serve hot foods hot (above

140°F)
- Serve cold foods cold (below
140°F)

Serve Safe Foods
- Buy foods from safe source

- Store foods at correct
temperature for a short period
- Cook properly and sufficiently
- Keep leftover refrigerated and

use promptly.

Sections/ Areas in the Kitchen

Hot Kitchen
 A section that prepares main dishes,

sauces, vegetable dishes, rice dish,
noodle/pasta dishes and soups.

Cold Kitchen
 Section that prepares salads
and salad dressings, appetizers,
sandwiches

Butchery
 Section responsible for food
processing and meat cutting
preparations.

Bakeshop
 Area that prepares breads,
cakes, pastries, and other baked
products.

Dishwashing Area

Kitchen Position and Job
Summary

1. Executive Chef
The highest position in
the kitchen
organization.
Overall in-charge of the
whole kitchen
operations both in
technical and
administrative aspects.
He is considered the
kitchen or production
manager. Chef Brian Boismier
Lake Jovita
Golf & Country Club
2. Sous Chef
(Deputy Kitchen Chef)
The assistant of
the executive
chef
He is the
working chef in
the kitchen.

3. Station Chef or Demi-
Chef de Partie
Section head or a
supervisor in a section
of a kitchen.
He assists the
executive chef in menu
planning.
He is the one in control
both in technical and
administrative aspects.

3.a.Saucier or Sauce Chef
Prepares sauces, stew

and hors d’oeuvres
and sautés food to
order.
This is usually the
highest position of all
the stations.
Commands after the
sous chef.

1) Fish Cook or Poissonier
 Prepares fish and sea food dishes.

2) Entremetier
 Prepares vegetable
dishes, soups,
starches and eggs
(may be divided
into vegetable cook
- legumier, fry cook
- friturier, and soup
cook- potager)

3) Roast Cook or Rotisseur
Prepares roasted
and braised meats
and their gravies
He also broils meat
and deep fries food
other items to
order.

4) Grill Cook or Grillardin
prepares
grilled foods
instead of the
rotisseur

3.b. Pantry Chef or
Garde Manger
Processes raw meat,
cold dishes,
forcemeat, pies,
salads and dressings
galantines and cold
hors d'ouevres.
Organizes large buffet
displays and prepares
charcuterie items.
Next in line after the
saucier for command.
3.c. Pastry Chef or Patissier
Prepares breads,
all basic desserts,
hot desserts, cold
desserts, frozen
desserts and hot
and cold pastries.
Works with
bakers or
boulangers.

 Confiseur – prepares candies &
petite-fours in larger restaurants
 Glacier – prepares frozen and cold

desserts in larger restaurants
 Decorateur – prepares showpieces

and specialty cakes in larger
restaurants

4. Relief Cook
 Tournant (swing cook),
 de Garde (duty chef),
 de Nuit (night chef),
 Banquet chef, etc
 Replaces station heads

Butcher or Boucher
Butchers meat,
poultry and
sometimes fish
May also be in
charge of
breading meat
and fish items

Announcer or Expediter or
Aboyeur
Takes orders from
the dining room
and distributes
them to the various
stations
This position may
also be performed
by the sous chef

Communard
Prepares the
meal served to
the restaurant
staff

Cuisinier (Cook)
He prepares
specific dishes in
a station
He may also be
referred to as a
cuisinier de partie

Commis I or First Cook or
Senior Cook
A highly skilled cook in
a section of the kitchen.
He constantly checks
the job of cooks under
him.
He could possibly be
promoted for a
supervisory position.

Commis II or Second Cook
or Junior Cook
Another skilled
cook in a section
of the kitchen

Commis III or Third Cook
or Cook Helper
The lowest
rank of cook
in the kitchen
organization

Kitchen Steward
Responsible in
maintaining the
cleanliness of the
kitchen.
Also does the
washing, sorting
and keeping of
soiled dishes

Dishwasher or Plongeur – cleans
dishes and utensils and may be
entrusted with basic preparatory job
Pot and Pan Washer or

Marmiton – in larger restaurants,
he takes care of all the pots and
pans instead of the plongeur

RECIPE
STANDARDIZATION

Standardized Recipe
Recipes that have been tested

and revised to repeatedly
produce good results.
It ensures that the production
and products are consistent and
successful.

Differences from an
Ordinary Recipe
Tried and Tested

 Standardized recipes undergo a
standardization process, which
consist of development, testing,
adjusting and retesting before they
can be used.

Uniform product results
 The end product of standardized
recipe is consistent in quality, flavor
and appearance

Standard Yield/ Portion Sized
Product
 The standardized recipe has been
adjusted to produce a yield based on
the production activities.

Written in a standard format
 The standardized recipe must be
recorded in a form that best suit
the production activities.

Information Found in a
Standardized Recipe
1. Recipe Name
 Descriptive and even creative name
for the recipe.

2. Product Classification
 Describes under which category the
recipe belongs to (i.e. soup, poultry
beef, etc)

3. Recipe File Number
 A filing number assigned to each
recipe card for easier organization,
storage and retrieval.

Yield
 The total amount of the end product
or number of portions produced by
the recipe

Portion Size
 Description of the amount of product

found in one serving.

Cooking Time and Temperature
 Describes how long and at what
temperature the product is
to be prepared.

Ingredients
 A list of the required raw materials for
the recipe

Measure
 An accurate description of how much
ingredient is to be used and its
measuring unit

Procedures and Methods
 Describe the steps to be undertaken
to produce a satisfactory product.

Date Revised
 Indicates the date that the recipe was
last reviewed and changed

Recipe Development and
Standardization Process

Ingredients
Flavor
Methods & Develop recipe (taste & odor)
Procedures
Color
Test Recipe
Packaging & Texture
Presentation
Adjust Recipe Presentation
Name
Retest Recipe Practicality
Procedure &
Adjust Yield Methods
Yield
Fix in a Standardized Recipe Format
Benefits of a Standardized Recipe
Guesswork is replaced by accuracy

Customers are assured of consistently
high quality products
Easier to cost
Easier to train workers
Minimizes left-over and waste
Avoids dependence on any one
personnel
Requires less time for mis-en-place and
preparation
Facilitates control
RECIPE
QUANTIFICATIO
N

What is Recipe Quantification?
 It is the process of enlarging recipes
with lower yields to adjust it to meet
the production requirements of bigger
functions.

Factor Method
A. Factor Method
A most recommended method for recipe

adjustment because it is accurate and it
can be used to any yield required. It is also
relatively easy to learn.

Steps in Adjusting Recipes Using Factor
Method
1. Divide the yield wanted by the yield of the
standardized recipe. The result is called the factor.
This step is applied for both increasing and
decreasing quantities of ingredients for a
standardized recipe.
Example: A hospital dietary unit will serve 45
medical front liners for a welcome party. One of the
standardized recipes to be used has a yield of 6.
To get the factor, divide 45 by 6.
Factor = 45/6
= 7.5
2. Using the factor, multiply this to the quantity of
ingredients to increase the amount corresponding
to the required number of yield. Quantities that are
in fractions are converted to whole or in decimals.
3. The quantified amount is converted back to its
original unit after the adjustment.

Steamed Fish Filled with Garlic Sauce
1 2 3
Quantity Converted Ingredients Factor Quantified/Adjusted

quantity Amount (Yield of
(Yield of 6) 45)
(X) (=)
½ kg 1 / 2= .5 White fish fillet, sliced into 7.5 3.75 kg or 3 ¾ kg

half
2 tsp Cornstarch 7.5 15 tsp
1 pc red and/or yellow bell 7.5 7 ½ pcs
peppers, sliced
4 cloves Garlic, minced and toasted 7.5 30 cloves
for garnish
1 tsp Sesame oil 7.5 7 ½ tsp

B. Percentage Method
A method that is accurate but less
frequently used because of its difficulties and
possible errors in converting to and from
percents, weights, and measures.

Step in Adjusting recipes using percentage method.
1. Convert all ingredient measurements to weight and calculate the total

weight of the recipe. Usually, the unit with the most is carried out.
2. Next is to calculate the percent of the total represented by each
ingredient.
Where, converted weight of an ingredient is divided by the total weight of all
ingredients then multiplied by 100.
Ex. 80 oz/ 183.5 oz= 0.4359
0.4359 x 100= 43.60*
*get up to second decimal

3. Multiply the percent value of ingredient with
the yield requirement.
Ex. .0.4360 x 22 lb= 9.59 lb
4. Get the total sum of all converted

ingredient.

Example:
An institution requires 20 pieces of lemon pie where each pie is weighing 1.1 lb. Adjust or
quantify recipe using percentage method.
1 2 3 4
Ingredients Original Converted % Total Total Yield Quantified
Weight Weight Required Amount
Water 5 lb 80 oz 43.60 22 9.59
Sugar 3 lb 6 oz 54 oz 29.43 22 6.47
Salt ½ oz 0.5 oz 0.27 22 0.059
Lemon 3 oz 3 oz 1.63 22 0.36
gratings
Constarch 8 oz 8 oz 4.36 22 0.96
Egg yolks 12 oz 12 oz 6.54 22 1.44
Lemon Juice 1 lb 6 oz 22 oz 11.99 22 2.64
Butter 4 oz 4 oz 2.18 22 0.48
Yellow Color As needed --- --- --- ---
Total 183.5 oz 100 22 lb
Total Quantified Amount = 22 lbs/ 1.1 lbs

= 20 pieces lemon pie

Cost Control in Foodservice

Definition of Related Terms
1. Costs- The prices paid for or the fair value of
other considerations given to acquire
resources or services. It is an economic
sacrifice measured by monetary value of an
exchange transaction.
Elements of costs:
a. Raw materials (food & beverage)
b. labor or manpower
c. Overhead
2. Expenses- expired, consumed and or utilized
costs
3. Controlling- One of the functions of
management which is concerned with the
measurement of current performance and
guidance towards some predetermined goal/s
4. Cost Control- The process through which
actual costs are made to conform to
STANDARD or expected costs with the end in
view of maximizing profit without sacrificing
the quality of the item being served or
produced. 2023 PSU BSND Enhancement
5. Cost Reduction- The use of management
devices to reduce costs such as the search for
cheaper materials, improved methods of
production, proper scheduling and utilization.

Control System is designed to:
 Establish standards and consumption limits
 Point out and measure variances from the
standards
 Localize trouble spots
 Provide feedback to end-users and
management about variances
 Seek for causes and remedies to solve
variances

Steps in Control
1. Establish standards or goals
Cost of food sales (food cost)…35-40%
Beverage Cost………………………..18-25%
Labor Cost………………………………15-24%
In food and beverage operations, the food cost
occupies the largest expense usually ranging
from 30-45% of sales. The most acceptable ratio
will depend on competitor’s prices, cost of
overhead expenses, type of market, the buying
capacity of the customers and other factors.

2. Measure actual performance- compare actual
cost vs. budget
3. Analyze variance
-Any variance between the actual cost and the
budgeted cost is a signal that there is
excessive consumption.
4. Take corrective action

Essential Elements in Controlling
Food Cost
• Standard Recipes
• Standard Purchase Specifications
• Standard Yield (net weight or volume of
cooked or prepared dishes
• Standard Portion Size(size or weight of
ingredients used in food preparation)

Areas and Sequence of Control in Food Production & Service
Activities Control Measures & Tools Who is Responsible
Setting Standards Clear definition of standards, establishing budget, Top Management
food cost %
Planning menus Standardized & cycle menus, recipe costing, pricing Chef, F&B Manager,
of menu packages, tests for quality & yield Cost Clerk, Chef
Ordering & Purchasing Purchase request, Market/grocery list, purchase End-user,
specifications, competitive bidding, purchase order Chef/storekeeper,
purchaser
Receiving Stocks Inspection for quality and quantity, use of receiving Receiving Clerk
reports/records, Supplier’s invoice
Store Keeping Use of meat tags, bin cards, Limitation of access, Storekeeper or stock
periodic inventory clerk
Issuance Requisition forms, Balancing requisition slips with End-user, Stock clerk
inventory, FIFO system, Forced issuance for non-
moving stocks
Food Preparation Use of standard recipe, Inter-kitchen memo All cooks/chef
Sales & Service Order slips, Issuance of receipts, reconciliation of Waiter, Order taker,
receipts vs. order slip Cashier, Auditor
Accounting Cashier’s report, documentation of purchases, Bookkeeper,
receipts, cash transactions, Revenue report, financial Accountant
statement 2023 PSU BSND Enhancement
1. DETERMINING FOOD COST AND SELLING PRICE
Terms:
a. Net Food Cost- represents the portion of sales which is spent for materials (i.e.
ingredients) or the amount spent for every peso sold
b. Food cost percentage is the ratio of cost of materials over the net food sales
Net Food Sales= Gross food sales- tax and service charge
Food Cost % is calculated as: FOOD COST

NET FOOD SALES
If a buffer margin is considered, the food cost will be actual cost + buffer margin
Example: Corn Soup
The total cost of ingredients for 10 portions is P74.50. Add a buffer margin of
10%, that is equivalent to P7.45 and the total food cost is P 81.95

Factors Affecting Cost
Control

A. Factors Affecting Food Cost
1. Menus: Menu planning is the first and perhaps the most important step in
control of food costs. The menu determines what & how many foods must
be purchased and prepared. The extent of the no. of choices of each menu
also influences food costs.
2. Type of service: Offered may be a factor in determining food costs. For
example food service using table service will have a higher food and labor
cost than a cafeteria style service. Self service helps in savings because each
individual can decide the quantity he prefer and thus reduce wastage.
3. Purchasing methods: Food costs begin at the time of purchase and
controlled procedures are an effective step for wise buying. Bulk purchasing
- rigid set of specification for quality of food to be purchased.
4. Receiving control: this is another step in controlling food costs. It is the
management’s responsibility to make certain that what was ordered is
received both in terms of quantity & quality.

Factors Affecting Food Cost
5. Storage & storeroom control: Purchase should be made only of food that
can be used at once or stored adequately. Only what is essential should be stored
for a limited period because unnecessarily large inventories tend to increase the
possibility of loss through spoilage, waste, pilferage or theft.
6. Production of foods: Preparation, cooking & left overs control: The quality
& form of food purchased has a direct bearing on the amount of waste in the
process of preparation & cooking. The actual cost of food is influenced not only by
the relationship between amount or weight of the edible portion and that of the
waste or inedible portion, but also by the quality of the edible portion.
7. Standardized portions and serving wastes: standardized portions and
portion control by using standard cups or dippers prevents the wastage.
8. Method of pricing: It is the responsibility of the food service manager to
determine the specific price of the food. Haphazard methods only lead to financial
disaster dissatisfaction of the customer or both.
9. Employee’s meal costs: Providing meals for employees is necessary and
desirable in most food services. This is a means of providing wholesome,
nutritionally balanced meals at reduced rates or free of charge as a convenience to
employees and helps to build and maintain a healthy & happy and efficient
working force. 2023 PSU BSND Enhancement
B. Factors Affecting Labor Cost
1. Type of service: cafeterias require less number of labour. In Table service
the labour requirement is based on the ratio of waiters to guests will vary
2. Hours of work / service: will determine number of shifts number of
meals to be served. In school lunch only one meal whereas hospital food
service should provide 4 to 5 meals / day.
3. Menu pattern: Major controlling factor in determining number of
employees required and skill (varies with type of food service org. amt. of
built in labour – which is more profitable.
4. Physical plant: Efficient kitchen arrangement helps in controlling labour
cost. Poor planning, arrangement results in inconvenience and waste of
human energy additional labour may be required to left, handle & carry or
move materials in a poorly arranged kitchen.
5. Equipment & arrangement: labour saving equipment is related to no. of
labour hours required to accomplish a given price of work.

6. Personnel policies: proper selection and skill increases the
productivity which helps in labour cost control.
7. Supervision: helps to achieve better standards greater utilization

of labour & equipment, and more compact functioning layouts.
8. Fringe Benefits: are given to the employees as encouragement to

increase productivity apart from the regular salary. This also includes
good share of labour costs. This can be minimized by better scheduling
or redistribution of work loads.

BUDGETING
Budget vs. Budgeting
> Budget is a plan for operating a business
expressed in financial terms or plan to control
expenses and profit in relation to sales.
> Budgeting is the process of budget planning,

peparation, control, reporting, utilization, and
related procedures

>> Budget control involves the use of budgets and
performance reports throughout the planned period
to coordinate, evaluate, and control operations in
accordance with the goals specified in the budget plan.
>> Budgeting provides an organized procedure for
planning and for development of standards of
performance in numerical terms.
>> Budgets provide a basis for control
>> Budgets are a tool for periodic examination,
restatement, and establishment of guidelines
Types of Budgets
A. Operating Budget
>> include revenues, expenses, changes in
inventory and other working capital items
>> a forecast of revenue, expenses and profit
for a specified period of items
B. Capital Budget
>>long term plan prepared to estimate or
predict the costs of capital or expenditures
>>equipment replacement, renovation
projects, facility expansion

Steps in Budget Preparation
1. Establish a monthly sales forecast covering food and
drinks.
2. After calculating the actual or projected sales income,
calculate or establish the profit required from the sales.
3. Determine the operating budget. If the desired profit is
20%, then the operating budget is 80% of the total
sales.
4. Allocate a certain cost percentage (ratio of cost over
sales) of every expense item from the total sales.

• A survey of industry practice reveals that the
allocation for food/beverage cost ranges from
35-50%, payroll and related expenses
(including employees’ meals) ranges from 15-
24%, taxes at 2-10%, and the profit share can
range from 10-20%.

Financial Goal
Cost Control System
Effective & Financial

Efficient Use of Cost
Control Reports &
Mgmt. Eval.
Procedures Records
Performance
Menu Planning
Purchasing Cycle Menu
Receiving Purchase Orders
Storing Delivery Sheet
Storeroom & Profit & loss
Issuing
Delivery Sheet statement
Preparation
Std. recipes Balance sheet
Production
Sales records Budget plans
Service
Sanitation & Safety Payroll sheet
Merchandising
Basic Financial Cost Records
1. Budget Plan-plan for forecasting needs,
probable activities and their expected costs
and the sources of anticipated income
2. Daily Food Cost Report- provides the latest
information about sales, food costs and
number of people served
3. Profit and loss statement –a summary
comparison in pesos and centavos of the
income with all expenses of the department
the amount of profit or loss for a given period
Income (Sales)
Less: Cost of food sold
Equals: Gross profit
Less: Labor and Operating Cost
Equals: Net profit or loss
Cost of Goods sold

Beginning Inventory+ Purchase= Cost of
available goods
Cost of available goods-Ending inventory=Cost of
goods sold
4. Annual Report-provides a summary of the
activities and accomplishments of the year
just completed. It also includes plans for the
future developments, information on the
personnel situation, changes or repairs and
anticipated needs.
5. Balance Sheet-statement of assets, liabilities,
and capital or owners equity at a given time or
at the end of accounting period.
Amrits Malabar bar and restaurant
For the year ending December 31st 2010
Income against expenses Rs. Change Upcoming Year

Food 786250.00 39313.00 825563.00
Beverage 138750.00 6938.00 145688.00
Total sales 925000.00 46251.00 971251.00

Cost of sales
Food 275187.00 13760.00 288947.00
Beverage 34688.00 1735.00 36423.00
Total sales 309875.00 15495.00 325370.00

Gross Profit 615125.00 645880.00 645881.00
Controllable Expenses
Fixed Sal and Wages 111000.00 4400.00 115400.00
Var Sal and Wages 74000.00 3603.00 77603.00
Employee benefits 46250.00 2001.00 48251.00
Other controllable expenses 138750.00 6500.00 145250.00
Total controllable expenses 370000.00 16504.00 386504.00
Income before Occupancy costs 245125.00 259377.00
Interest, depreciation Inc taxes
Occupancy costs 78625.00 2000.00 80625.00
Interest expenses 13875.00 13875.00
Depreciation 46250.00 46250.00
Restaurant profit 2023 PSU BSND Enhancement
106375.00 118627.00
Organization & Management

Types of Organization
A. Line Authority
 Lines of authority are clearly drawn and
each individual is responsible to the person
ranking above him. Authority and
responsibility pass from the top-ranking
members down to the lowest in rank
 This is similar to the military set-up, where
the supervisor has direct control over the
people he supervises and has responsibility
for them

Other Characteristics of Line
Authority
Vertical Growth: Occurs through the delegation of
authority, responsibilities redistributed
horizontally through departmentalization
Ways of dividing the work: By Function, product, or
location
Advantages:
1) Expediency in decision-making
2) Direct Placement of responsibility
3) Clear Understanding of authority relationship
Major Disadvantage: top tends to become
overloaded with too much detail
B. Staff Authority
Many diversified responsibilities demanded of
the person at the top
Staff specialists are added to assist the lines
in an advisory capacity
Line & Staff- staff advises and supports the
line

C. Functional Authority
Other known as committee type, where in a
group of persons acts as a body to formulate
decisions
When an individual delegates limited authority
over a specified segment of activities to
another person, may be vested in a vice
president

Tools of Management
A. Organizational Structure
The framework by which the activities of
an enterprise, as determined by the
mangers are performed. The different
structures are held together by precise
policies, orders and instructions for doing
their respective functions.

Features:
1) The broad base indicates that at the workers level, the
number of employees tend to be large because it is at
this level that most of the operational functions are
performed.
2) Pointed upward indicating that each higher level, the
actual performance of operations decreases, hence
reducing the need for operation personnel.
3) At higher level, an increasing amount of leadership,
planning and other managerial activities are
performed. It involves greater responsibilities but are
concentrated in less number of people.

Component:
Top Management Group
 Makes major plans and policies for the company
 Formulates major decisions on finances, production
sales & etc.
Operating Management Group
 Interprets policies, formulates plans and utilizes
manpower
 Coordinates, follow ups an trains employees
 Accountable to chief executives

Operating Supervisors
Have control and supervises the work of
workers
Direct and carry out the program and goals of
the section
Train personnel under him
Follow up and see to it that the employees
under them to do the work satisfactorily

Operating Personnel/Workers/ Rank & File
No part in management
Accomplish the work given to them
Carry out the decisions made by top and
operating management

Organizational Structure is dependent on
the following:
1) Type and size of the institution
2) Objectives and functions of the
foodservice
3) Number and types of personnel available
4) Administrative policies of the institution

Organizational Structure
Hosp.Director
Asst.Dir.
Chief Prof.Staff
Chief Dietitian
Clinical Dietitian
Supervisor
Workers
B. Organizational Chart
It is a diagram showing the salient aspects
of an organizational structure. It shows the
relationship between the positions and the
people who occupy them according to
authority, responsibility and accountability.
 Solid Lines- indicate channels of authority
 Dotted Lines- show advisory responsibility
and lines of communication
Purposes of The Organizational Chart
1. Checks important functions that are neglected
2. Unimportant functions that are overstressed
3. Duplications and/or overlapping operation
4. Functions that need not be separated
5. Men with ability wasting their talents in
subordinate position
6. Specialist handling functions out their line
7. One person handling several unrelated
functions

Information Derived from An Organizational Chart
1. Departmental responsibilities
2. Relationship of the department with other
department
3. Responsibilities of personnel within the
department
4. Line authority
5. Coordination of work within the department

C. Job Description
An organized list of duties, skills and
responsibilities required in a specific
position.
Should be written in every position.

Should be reviewed and updated
periodically.
Importance:
1. Valuable for matching qualified
applicants to the job
2. For orientation and training employees
3. For performance appraisal
4. For establishing rates of pay
5. For defining limits of authority and
responsibility
Format According to Job Classification
1. The work of foodservice employee is described in

terms of specific duties and skill requirements
2. For the professional position is written in terms of
broad areas of responsibilities
Job Description Include:
3. Identifying information
4. A job summary
5. Specific duties and requirements
D. Skills Matrix System
A written statement of the minimum standards
that must be met by an applicant for a particular
job
Covers duties involved in a job, the working

conditions peculiar to the job, and personal
qualifications required of the worker to carry out
the assigned responsibilities successfully.

E. Work Schedule
An outline of work to be performed, procedures to be
used, and time schedule for a particular position
Importance;
1. Helpful in training new employees
2. Supplemented by a daily production schedule giving
specific assignments for preparation of the day’s menu
items and preparation for the next day
3. Organization work schedule gives the standing
assignments by half-hour periods for all employees in
chart form.

Three Basic Types of Work Schedules:
1. Individual
2. Daily Unit
3. Organization

Thank you.
Questions, please?

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Foodservice Systems

2023 PSU BSND Enhancement

2023 PSU BSND Enhancement

2023 PSU BSND Enhancement

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The foodservice organization interacts with such groups which

This involves menu and production planning, mise-en-

Also included in the in the transformation process is

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It consists of goods and services that are

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It can include simple systems like the physical

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Country Club Dining

Hospital Dietary Unit

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Equipment & Facilities

Labor, Skill, & Time Available

Taste, Variety, Complexity

Profit & Financial The

Nutrition & Physiology

Time & Seasonal Considerations

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Anak: Tay, ano ang difference ng dinner at

Tatay: Kung kumain tayo sa labas, nad-

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a) Mean Mix percentage(MM%): sales of

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