FoodandBeverageOperations

1Tuesday, May 19, 2009

ChapterObjec-ves

Rolesofpurchasing,receiving,storing&issuinginfoodproductionpreparation

Rolesofpurchasing,receiving,storing&issuinginalcoholicbeverageservice

BenefitsofTechnology

2Tuesday, May 19, 2009

Food&BeverageDept.

Storeroom PurchasingDept.

Receiving

Supplier

Accounting

(2)Issues

RequiredProducts

(1)Requisition

Form

(3)Purchase

Requisition

PurchaseOrder/Record

(4)Purchase

Order/Record

(9)Payment

(6)DeliversProducts,Invoice

(5)PurchaseOrder/Record

(7)Store

Products(8)

Invoice

ThePurchaseProcess

3Tuesday, May 19, 2009Typical Purchasing and Receiving storerooms also track costs and conduct inventory

PurchasingInventory‐Theamountoffood,beverages,andothersuppliersonhand

PurchaseRequisition‐Aformspecifiestheproductsthatareneeded,howmanyareneeded,andhowsoonareneeded.

4Tuesday, May 19, 2009

Purchasing(cont.)

Purchasespecification‐Adetaileddescriptionofthequality,size,weight,andothercharacteristicsdesiredforaparticularitem(Exhibit2p.182)

Purchasingdirectlyaffectsthebottomline

5Tuesday, May 19, 2009

GoalsofaPurchasingProgram

BuytherightproductsMake‐or‐buydecisionsConveniencefoods

Obtaintherightqualityminimum/maximumlevelsPrice,storagespace,waste,pilferage,etc.

6Tuesday, May 19, 2009

GoalsofaPurchasingProgram(cont.)

Paytherightprice

Dealwiththerightsupplier

7Tuesday, May 19, 2009

TechniquestoGetLowerPrices

NegotiatewiththesellerConsiderlowerqualityproductsEvaluateneedforproductsDiscontinuesupplierservicesCombineordersuseBulkPurchases

ReevaluateexpensiveitemsPaycash

8Tuesday, May 19, 2009

TechniquestoGetLowerPrices(cont.)SpeculateonpricetrendsChangepurchaseunitsizeBeinnovativeTakeadvantageofsuppliers'promotionaldiscounts

Bypasssuppliers

9Tuesday, May 19, 2009

ChoosingaSupplier

LocationFacilitiesFinancialstabilityTechnicalabilityHonestyandfairness

Dependability

10Tuesday, May 19, 2009

TheReceivingProcess1. Inspectproductsagainstpurchaseorder2.Inspectproductsagainstpurchasespecifications

3.Inspectproductsagainstdeliveryinvoice4.Acceptproducts5.Moveproductstostorage6.Completepaperwork

11Tuesday, May 19, 2009

QualityControlinStorageRotatefoodstocks(FIFO)

Storefoodatpropertemperatures

Cleanstorageareas

Ensureproperventilation

12Tuesday, May 19, 2009Daily routines make training and cost control more convenient

Recordkeeping

PerpetualInventorySystem–allowsmanagerstotrackiteminstorageonanongoingbasis

PhysicalInventorySystem–countswhichisinstorageonaperiodicbasis‐usuallyattheendofeachmonth

13Tuesday, May 19, 2009Physical Inventory is usually more accurate operationally

ReducingInventoryCost

CarryasmalleramountofinventoryMakecertainminimum/maximuminventorylevelsarecorrect

CarryfewerproducttypesRefusetoacceptearlydeliveriesConsolidateallproductsDateandrotate

14Tuesday, May 19, 2009

PurchasingAlcoholicBeverage

Housebrand–abeveragebrandservedwhennospecialbrandisrequestedbytheguest.

Callbrand–aspecificbeveragebrandthatguestsrequestbynamewhentheyplaceanorder

Inventoryturnoverratesaregenerallylowerforbeveragethanforfoods

15Tuesday, May 19, 2009

ReceivingAlcoholicBeverage

OpencasesandcheckbottlesforaccuracyAfterreceiving,immediatelymovebeveragestosecurestorageareas

Whenpossible,assignpurchasingandreceivingtaskstoseparateindividuals

16Tuesday, May 19, 2009

StoringAlcoholicBeverage

BarPar‐thenumberofbottlesthatshouldbeonhandbehindthebar.

17Tuesday, May 19, 2009

Technology• Howwasthedecisionmadeto

purchasethisparticularsystem?• Whatsystemwasusedpreviously?• Howdidstaffrespondtothenew

system?• Whatarethebenefitsofusingthe

currentsystem?• Howmuchdidthetechnologycost

topurchase?Howmuchdoesitcosttomaintain?

18Tuesday, May 19, 2009

Technology

Just‐In‐Time(JIT)InventorySystem‐Keepingonly“emergency”qualitiesofproductsonhandandordering/receivingthemajorityoffoodandbeverages“justintime”toissueandusethem.

Primesupplierisavendorthatsellsproductstoafoodserviceproviderusingajust‐in‐timeinventorysystem

19Tuesday, May 19, 2009