Part One

Identify at least 3 menu items that indicate a specific portion size, e.g., six-ounce filet mignon, quarter pound hamburger, etc. Complete the Menu Pricing table with the menu item, portion size, purchase cost, EP Cost, Selling Price and Food Cost %. (You may have to talk with the manager about this if the menu does not make the portion size distinction clear.) The table in this section will be completed with information obtained in the interview, Part Two, of your project. If unable to get accurate pricing from the establishment you may need to calculate yourself using retail pricing, Book of Yields pricing or prices available to you through your place of employment.

Part Two

After you complete the table, select three menu items and track how costs are controlled for each item as it passes through the various stages of the restaurant/operation. Develop a set of questions for each stage that you can ask the restaurant manager or executive chef. Some SAMPLEquestions are given below: (you are looking for specific application of the controls covered in this course)

1. Purchasing and Receiving

• What is the as purchased (AP) price of the main (center of plate) ingredient(s) in this menu item?
• What is the yield percentage of the main (center of plate) ingredient(s) in this menu item?
• What is the EP cost?
• What additional sides or standard menu items (i.e. bread, chips) would need to be added to the center of plate ingredient to complete the food cost for the chosen menu item? How would this affect the overall food cost % of the menu item?
• How often do these items need to be purchased?
• How do you determine amount of items to purchase?
• What type of purchasing program is used & who are the vendors?

2. Storing and Issuing

• How are the items stored?
• What stock rotation method is used?
• How is spoilage prevented?
• How often is inventory taken?
• What inventory valuation method do you use? (FIFO, LIFO, Actual, Average)

3. Production

• How many portions are prepared each day?
• Is there a standardized recipe for each menu item?
• How are wasted foods tracked?
• How is each menu item portioned?

4. Service, Sales, Labor

• What is the selling price of the selected menu items?
• How was the selling price determined?
• Is a Q factor used in pricing menu items? If not, how are sides or standard menu items (i.e. bread, chips) factored into the selling prices?
• (Calculate the food cost percentage from your data collected)
• What market forces affect the selling price for each menu item?
• How are sales tracked?
• What is the popularity of the selected menu items?
• What methods of payment are accepted?
• How is cash secured in the facility?
• Who counts the cashier/wait staff receipts?
• How is scheduling done?
• How does management forecast labor costs?
• What is the employee turnover rate? [Calculate this from the # of employees hired and number of average employees needed by the facility.]

5. Other

• What sustainability practices are utilized at the facility?
• What is the age of the physical facility?
• What security measures are in place at the facility?

Part Three

Write a five to seven-page (double spaced, 12-point font, and one-inch margins) paper that summarizes your findings. Your report should start with the purchasing process and then move onto production and service. Include in your report which tools and techniques learned about in this course are being used to control costs in the operation. Identify which tools and techniques learned about in this course are NOT being used in the operation. Discuss your learning from this process and opportunities for further cost controls that could be implemented at this establishment. This will require you to analyze the current cost control methods used against the methods learned throughout the course.