Chapter 7 kitchen and dining areas answers

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C h a p t e r 7

restaurant Management

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after reading and studying this chapter, you should be able to:

• Describe a restaurant’s front of the house.

• explain how restaurants forecast their business.

• Describe restaurant service.

• Describe front- and back-of-the-house systems.

• Outline back-of-the-house operations.

• Summarize restaurant management financials.

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Front of the house restaurant operations are generally divided between what is commonly called front of the house and back of the house. the front of the house includes anyone with guest contact, from the hostess to the busser. the sample organization chart in Figure 7–1 shows the differences between the front- and back-of-the-house areas.

the restaurant is run by the general manager, or restaurant manager. Depending on the size and sales volume of the restaurant, there may be more managers with special responsibilities, such as kitchen manager, bar manager, and dining room manager. these managers are usually cross- trained to relieve each other.

In the front of the house, restaurant operation begins with creating and maintaining what is called curbside appeal, or keeping the restaurant look- ing attractive and welcoming. ray Kroc of McDonald’s once spent a couple of hours in a good suit with one of his restaurant managers cleaning up the parking lot of one of his restaurants. Word soon got around to the other stores that management begins in the parking lot and ends in the bathrooms. Most restaurant chains have checklists that each manager uses. In the front of the house, both the parking lot and any greenery, walkways, and steps need to be maintained well. as guests approach the restaurant, hostesses may hold the door open and welcome them to the restaurant or greet them upon entry. at the 15th Street Fisheries restaurant in Ft. Lauderdale, Florida, hostesses welcome the guests by assuring them that “we’re glad you’re here!”

Once guests are inside, the host/hostess, or as tGI Fridays calls him or her, “smiling people greeter” (SpG), greets the guests appropriately, and, if seating is available, escorts them to a table. If there is a wait, the host/ hostess will take the guests’ names and ask for their table preference.

aside from greeting the guests, one critical function of the host/ hostess is to rotate arriving guests among the sections or stations. this ensures an even and timely distribution of guests—otherwise one section may get

LearnInG OBjeCtIve 1 Describe a restaurant’s front of the house.

General Manager

Kitchen Manager

Back of the House

cooks prep cooks expediter receiving dishwashing

Bar Manager Dining Room Manager

Front of the House

Opening and Closing Managers

bar-backs bartenders cocktail servers

host/hostess bussers servers

Figure 7–1 • Restaurant Organization Chart.

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overloaded. Guests are sometimes asked to wait a few minutes even if tables are available. this is done to help spread the kitchen’s workload.

the host/hostess maintains a book, or chart, showing the sections and tables so that they know which tables are occupied, and then escorts guests to the available tables, presents menus, and may explain special sales promo- tions. Some may also remove excess covers (the number of guests is known as covers in restaurants) from the table.

In some restaurants, servers are allocated a certain number of tables, which may vary depending on the size of the tables and the volume of the restaurant. Usually, five is the maximum. In other restaurants, servers rotate within their section to cover three or four tables.

the server introduces him- or herself, offers a variety of beverages and/ or specials, and invites guests to select from the menu. this is known as suggestive selling. the server then takes the entrée orders. Often, when tak- ing orders, the server begins at a designated point and takes the orders clockwise from that point. In this way, the server will automatically know which person is having a particular dish. When the entrées are ready, the server brings them to the table. he or she checks a few minutes later to see if everything is to the guests’ liking and perhaps asks if they would like another beverage. Good servers are also encouraged, when possible, to pre- bus tables.

Bussers and servers may clear the entrée plates, while servers sugges- tively sell desserts by describing, recommending, or showing the desserts. Coffee and after-dinner cocktails are also offered. Suggestions for steps to take in table service are as follows:

1. Greet the guests.

2. Introduce and suggestively sell beverages.

3. Suggest appetizers.

4. take orders.

5. Check to see that everything is to the guests’ liking within two bites of the entrées.

6. ask if the guests would like another drink.

7. Bring out the dessert tray and suggest after-dinner drinks and coffee.

In addition to the seven steps of the table service, servers are expected to be nCO—neat, clean, and organized— and to help ensure that hot food is served hot and cold food served cold.

For example, during the lunch hour, servers may be scheduled to start at 11:00 a.m. the opening group of two or three people is joined by

A fine-dining restaurant prepares to welcome guests.

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Robert Heath, a veteran restaurant “mystery shopper,” has performed over 1,000 inspections at various types of dining establishments throughout the country, from quick service to casual and fine dining. Robert recently shared the procedure that so-called mystery shoppers follow, from beginning to end, while performing restau- rant “mystery shops.”

Robert is registered as an independent contractor for several different mystery shopping companies through- out the United States. Once a mystery shopper is registered with a company, he or she is provided with access to a job board that lists various opportunities to “shop” restaurants. All registered mystery shoppers are required to apply to shop specific restaurants on the job board and make bids on the jobs listed. Once an individual wins a shopping job, they are scheduled to shop on a particular date by the mystery shopping company. A shopper, like Robert, is then provided with a general set of guidelines that he is required to follow when performing the shop. The steps to shopping an upper casual or fine-dining restaurant are listed as follows:

Step 1: The shopper is required to call the restaurant to inquire about making a reservation. During the reser- vation call, the most important things to test are as follows:

• The number of rings (length of wait) before the call is answered is reasonable. • The greeting, including “thank you” for calling the restaurant, the name of the reservationist, and an offer

of assistance. • The reservationist was courteous and had a “smile” in their voice during the call. • The reservationist repeated the reservation details back to the shopper including the name, date and time,

and number of guests in the party. • The reservationist offered a friendly farewell before ending the call.

Step 2: Once a shopper arrives at the restaurant, he or she is required to check in at the host podium, during which time the most important things to test are as follows:

• Did the host acknowledge you with a smile and a welcoming greeting? • Once the host determined your name for the reservation, your name was used discreetly at some point. • The host made conversation when escorting you to the table. • The host provided chair assistance at the table. • The host presented you with a menu and wished you an enjoyable meal. • The host offered you a friendly farewell upon departure from the restaurant.

Step 3: A shopper, like Robert, is then required to examine the service provided at the table, during which time the most important things to test are as follows:

• The amount of time it took for the server to greet him was reasonable. • The server greeted or welcomed him before asking for his drink order. • The server offered him bottled, sparkling, or regular tap water.

H O w t O M y s t e r y s H O P a n U P s c a L e r e s t a U r a n t

Courtesy of James McManemon, M.S., University of South Florida Sarasota–Manatee

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• The server was able to explain the concept and menu, and provided recommendations. • The server repeated the order back to him. • The amount of time before each course was delivered was timely, and the courses did not overlap. • The server announced the dishes when presenting them. • The server checked on his satisfaction promptly after serving each course. • The dirty dishes were promptly cleared when he was finished with his meal. • Drink refills were offered by the server, and water was refilled unprompted. • The server offered coffee and dessert. • The check was presented in a timely manner, and payment was promptly processed. • The server thanked Robert for dining and invited him to return. • A manager was present throughout the dining area and was seen visiting guests at tables.

Step 4: While dining at the table, the food should be examined, during which time the most important things to test are as follows:

• The food is visually appealing and/or attractively presented. • The food is served at the correct temperature and properly prepared. • The food is flavorful and fresh. • The menu is diverse in offerings.

Step 5: Throughout the course of the restaurant shop, the facility and the atmosphere should be examined, during which time the most important things to test are as follows:

• The outside of the restaurant, including the sidewalk, doors, walls, windows, and landscaping: Are they clean and well maintained?

• The interior windows, walls, floors, and carpet: Are they clean and free of debris, cracks, or stains? • The podium is neat and organized. • The table linens are clean and the table settings are uniformly set on the table. • The china and glassware are clean and free of chips or marks. • The temperature, lighting, and music are set at comfortable levels. • The restrooms are clean and well maintained.

Additionally, Robert points out that during the mystery shop, it is important to note in detail the exact times that you interact with each staff member. Also, it is important to record the names and/or descriptions of staff members interacted with; however, it is not advised to ask staff members for their names. Instead, observe name tags if they are worn. If only a description can be determined, make sure to record the staff member’s gender, height, hair color/length, and any other distinguishing qualities. All perti- nent information can be easily recorded in the notes page on an iPhone, but always remember that subtlety is key.

H O w t O M y s t e r y s H O P a n U P s c a L e r e s t a U r a n t (Continued)

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the closing group of the same number at around 11:45 p.m. If the restaurant is quiet, servers may be phased out early. When the closing group comes in, there is a quick shift meeting, or “alley rally.” this provides an opportunity to review recent sales figures, discuss any promotions, and acknowledge any items that are “eighty-sixed”—the restaurant term for a menu item that is not available. recognition is also given to the servers during the meetings, serv- ing as morale boosters.

▶ check your Knowledge

1. Describe the principal functions of the front-of-the-house table server.

2. Why might guests be asked to wait a few minutes even if there are some tables available?

3. What does curbside appeal mean?

restaurant Forecasting Most businesses, including restaurants, operate by formulating a budget that projects sales and costs for a year on a weekly and monthly basis. Financial via- bility is predicted on sales, and sales budgets are forecasts of expected business.

Forecasting restaurant sales has two components: guest counts, or cov- ers, and the average guest check. Guest counts, or covers, are the number of guests patronizing the restaurant over a given time period—a week, a month, or a year. to forecast the number of guests for a year, the year is divided into 13 periods: twelve 28-day and one 29-day accounting periods. this ensures that accounting procedures are able to compare equal periods rather than months of unequal days. the accounting periods are then bro- ken down into four 7-day weeks. restaurant forecasting is done by taking into consideration meal period, day of week, special holidays, and previous forecast materializations.

In terms of number of guests, Mondays usually are quiet; business grad- ually builds to Friday, which is often the busiest day. Friday, Saturday, and Sunday frequently provide up to 50 percent of revenue. this, however, can vary according to type of restaurant and its location.

the average guest check is calculated by dividing total sales by the number of guests. Most restaurants keep such figures for each meal. the number of guests forecast for each day is multiplied by the amount of the average food and beverage check for each meal to calculate the total forecast sales. each day, actual totals are compared with the forecasts. Four weekly forecasts are combined to form one accounting period; the 13 accounting periods, when totaled, become the annual total.

Restaurant forecasting is used not only to calculate sales projections, but also for predicting staffing levels and labor cost percentages. Much depends on the accuracy of forecasting. Once sales figures are determined, all expendi- tures, fixed and variable, have to be deducted to calculate profit or loss.1

LearnInG OBjeCtIve 2 Explain how restaurants forecast their business.

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▶ check your Knowledge

1. explain the importance of restaurant forecasting.

2. What formula would a restaurant use to forecast guest counts and guest checks?

service More than ever, what american diners really want when they eat out is good service. Unfortunately, all too often, that is not on the menu. With increased competition, however, bad service will not be tolerated in american restau- rants. just as american cuisine came of age in the 1970s and 1980s, service is showing signs of maturing in the twenty-first century.

a new american service has emerged. a less formal—yet professional— approach is preferred by today’s restaurant guests. the restaurants’ commit- ment to service is evidenced by the fact that most have increased training for new employees. Servers are not merely order takers; they are the salespeople of the restaurant. a server who is undereducated about the menu can seri- ously hurt business. One would not be likely to buy a car from a salesperson who knew nothing about the car; likewise, guests feel uneasy ordering from an unknowledgeable server.

restaurants in the United States, Canada, and many other parts of the world all use american ser- vice, in which the food is prepared and appealingly placed onto plates in the kitchen, carried into the din- ing room, and served to guests. this method of ser- vice is used because it is quicker and guests receive the food hot as presented by the chef.

Servers at some San Francisco restaurants role- play the various elements of service such as greeting and seating guests, suggestive selling, correct meth- ods of service, and guest relations to ensure a positive dining experience. a good food server in a top restau- rant in many cities can earn $50,000 or more a year.

Good servers quickly learn to gauge the guests’ satisfaction levels and to be sensitive to guests’ needs; for example, they check to ensure guests have everything they need as their entrée is placed before them. even better, they anticipate guests’ needs. For example, if the guest had used the entrée knife to eat the appetizer, a clean one should automatically be placed to the right side of the guest’s plate. In other words, the guest should not receive the entrée and then realize he or she needs another knife.

LearnInG OBjeCtIve 3 Describe restaurant service.

A server as a salesperson, explaining a dish on the menu to a guest.

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John T. Self, California State polytechnic University, pomona

It seems like only yesterday that I was walking into my first restaurant as a new manager trainee fresh from college. I found the restaurant industry perfect for me. It had plenty of variety, energy, and opportunity that matched my personality. I loved that I would not have to just sit behind a desk doing one thing every day. As a restaurant manager, your day will include accounting, human resources, marketing, payroll, purchasing, personal counseling, and many more functions that will challenge you.

You will be part of a management team that is the foundation of any restaurant, regard- less of whether it is a chain or an independent. Managers have a huge sphere of influence, including customer service, sales, and profitability. You will be part of a management team

responsible for a multimillion-dollar operation. When you first become a manager, it is easy to be overwhelmed. You will probably feel that you will never

be able to understand all the moving parts of a restaurant. However, as you grow in your management position, you will not only understand how it all works, you will also understand how you influence each part.

Being a restaurant manager offers the opportunity to grow as an individual because you will deal with so many types of people, including employees, peers, supervisors, vendors, and customers. You will learn how to get your team excited and motivated to share common goals. You will find it very rewarding to teach others about the culture of the business and will have many opportunities to make positive impacts on your staff.

The restaurant industry is the epicenter of the people business, and management is at the heart of the restau- rant industry. Motivating people, delegating responsibility to people, and leading people is what we are about and what we do.

Whichever company you eventually join, each will present a slightly different environment, career path, hours, days, responsibilities, and opportunities, but all these companies will share an interest in food and in people at their core.

F O c U s O n r e s t a U r a n t O P e r a t i O n s

the Manager’s role

another example of good service is when the server does not have to ask everyone at the table who is eating what. the server should either remember or do a seating plan so that the correct dishes are automatically placed in front of guests.

Danny Meyer, owner of new York City’s celebrated Gramercy tavern and recipient of both the restaurant of the Year and Outstanding Service awards from the james Beard Foundation, gives each of the restaurant’s employees— from busser to chef—a $600 annual allowance ($50 each a month) to eat in the restaurant and critique the experience.2

at the critically acclaimed Inn at Little Washington in Washington, virginia, servers are required to gauge the mood of every table and record a number (1–10).3 anything below a seven requires a diagnosis. Servers and kitchen staff work together to try to elevate the number to at least a nine by the time dessert is ordered.

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Several restaurants are adopting various types of service—among the interesting ones is Chipotle, where guests line up and select their meal from food items displayed in hot containers in a line. after paying, the guests go to a station for a beverage, napkins, sauces, and cutlery, and then seat themselves, all for under $10. at panera Bread, guests also queue up and order but then are given an electronic pager that is placed on the table so the order can be brought to them. taking yet another service style, Carmel Kitchen & Wine Bar gives guests tablets with the menu. a description of each dish with photos and a wine selection is provided so guests can place their own orders directly to the kitchen, allowing a server to bring the food and beverages to the table quicker than most other restaurants.

suggestive selling Suggestive selling can be a potent weapon in the effort to increase food and beverage sales. Many restaurateurs cannot think of a better, more effec- tive, and easier way to boost profit margins. Servers report that most guests are not offended or uncomfortable with suggestive selling techniques. In fact, customers may feel special that the server is in tune with their needs and desires. It may be that the server suggests something to the guest that he or she has never considered before. the object here is to turn servers into sellers. Guests will almost certainly be receptive to suggestions from compe- tent servers.

On a hot day, for example, servers can suggest frozen margaritas or dai- quiris before going on to describe the drink specials. Likewise, servers who suggest a bottle of fumé blanc to complement a fish dish or a pinot noir or cabernet sauvignon to go with red meat are likely to increase their restau- rant’s beverage sales.

Upselling takes place when a guest orders a vodka and tonic—for example, instead of serving a lower priced “well” vodka, the server can try to sell the guest on a higher priced vodka like Stoli, Ketel One, or Grey Goose. another example of the benefits of upselling is if a server is able to upsell a guest on a special by describing the menu item like this: “Our special tonight is a slow-roasted prime angus beef rib roast, served with roasted potatoes and a medley of fresh vegetables.” now, if this entrée costs $10 more than other items on the menu, the table’s check will increase by $10 for every guest who is upsold. If a server has a section of approximately five to six tables with an average of three guests per table and is able to turn those tables four times in a night, the potential increase in sales is between $600 and $720 if each guest is upsold on the special. Obviously every guest is not going to order the special, but each guest that is persuaded to buy a more expensive item increases the restaurant’s overall sales.

additionally, upselling is beneficial for the server as well. We know that a server receives about 15 percent in tips each night. In the scenario above, a server has the potential to make an additional 15 percent of $600 2 $720 5 $90 2 $108 in tips.

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▶ check your Knowledge

1. Describe the different types of restaurant service.

2. explain the concept of suggestive selling.

3. name three characteristics of a good server.

Sustainable restaurant Operations4

Sustainability is not just a philosophy about food—it’s about people, attitudes, communities, and lifestyles. In the spirit of the theme of the 5th annual International Chefs Congress—“the responsibility of a Chef”— the ideas below come from chefs across the country. there’s an idea to inspire you each day of the next month; even picking one to consider, or act upon, per week is a good way to start. almost everywhere one goes, we hear the same message: Small changes and efforts can make a big difference!

1. Go local. It’s not possible for everyone all the time. But when it is pos- sible, support your local farmers.

2. take your team to visit a farmer. this is good practice for remembering that each piece of food has a story and a person behind it. (and you can bring back extra produce for a special family meal.)

3. Know your seafood. the criteria for evaluating the sustainability of sea- food differ from those for agriculture. Inform yourself using resources like California’s Monterey Bay aquarium’s Seafood Watch Guide, and demand that your purveyors are informed, too. If they can’t tell you where a fish is from and how and when it was caught, you probably don’t want to be serving it.

4. not all bottled water is created equal. Some companies are working to reduce and offset their carbon footprint through a number of innovative measures. Some of the biggest names in the restaurant world (like The French Laundry) are moving away from water bottled out of house. In-house filtration systems offer a number of options, including in-house sparkling water.

5. Ditch the Styrofoam. replace cooks’ drinking cups with reusable plastic ones, and replace Styrofoam take-out containers with containers made of recycled paper. Biopac packaging is one option.

6. Support organic, biodynamic viniculture. there are incredible, top-rated biodynamic organic wines from around the world.

7. Support organic bar products. all-natural and organic spirits, beers, and mixers are growing in popularity and availability.

8. even your kitchen and bar mats can be responsible. Waterhog’s eco Floor Mats are made from 100 percent recycled pet postconsumer recy- cled fiber reclaimed from drink bottles and recycled tires.

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9. Devote one morning per quarter or one morning per month to com- munity service. Send staff to a soup kitchen, bring local kids into the kitchen, teach the kitchen staff of the local elementary school a few tricks, or spend a few hours working in the sun at a community garden.

10. the kitchen equipment of the future is green! Major equipment produc- ers, like hobart and Unified Brands, are developing special initiatives to investigate and develop greener, cleaner, energy-smart machines (that also save you money in the long run).

11. Shut down the computer and point-of-sale (POS) systems when you leave at night. When the computer system is on, the juice keeps flowing—shutting it down can save significant energy bill dollars over the course of a year.

12. Check the seals on your walk-in. If they’re not kept clean and tight, warm air can seep in, making the fridge work harder to stay cool.

13. Compact fluorescent light bulbs (CFLs) use 75 percent less energy than incandescent bulbs. CFLs also last 10 times longer, giving them the envi- ronmental and economic advantage.

14. Consider wind power. ask your energy provider about options—Con ed, for example, offers a wind power option. though it tends to cost 10 percent more than regular energy, there’s an incentive to bring the bill down by implementing other energy-saving techniques to offset the higher cost of wind power.

15. Look into solar thermal panels to heat your water. Solar Services, one of the oldest and biggest companies, will walk you through the process— from paperwork to tax credits. With the money saved on a water heater, the system will have paid for itself in two to three years.

16. Green your cleaning routine. trade astringent, nonbiodegradable, poten- tially carcinogenic chemical kitchen cleaners for biodegradable, eco-safe products.

17. Use nontoxic pest control. the options are increasing, and even some of the major companies have green options.

18. Consider purchasing locally built furniture. See if there are any artisans in your state working with reclaimed wood (from trees that have fallen naturally because of storms or age).

19. recycle your fryer oil. Biofuel companies across the country will pick it up and convert it.

20. Grow your own. Consider a rooftop garden or interior/exterior window boxes for small plants and herbs. earthBoxes are one low-maintenance solution.

21. Cut down on shipping materials. request that purveyors send goods with the least amount of packing materials possible. request that Styrofoam packaging not be used.

22. trade in white toilet paper, c-folds, and restroom paper towels. Instead, use products made of chlorine-free, unbleached, recycled paper.

23. need new toilets? there are a number of water-saving options that save anywhere from half a gallon to more than a gallon per flush.

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the old-fashioned brick technique is a good start, too: place a brick in the tank of your toilet—the space that it takes up is water saved each time the toilet is flushed.

24. Compost garbage. even high-volume establishments can make this hap- pen. Keep separate cans for all food-based waste, and dump it in a com- post bin out back. a common misconception about compost is that it smells bad—this is not true!

25. recycle! Be strict about kitchen and bar staff recycling glass and plastic receptacles. recycle cardboard and wood boxes used for produce, and any newspapers or magazines sent to the restaurant.

26. Cut down on linens. tablecloths and napkins require a large amount of chemical cleaners, bleaches, and starches. Stay away from white, if pos- sible. If it’s not imperative, consider eliminating tablecloths all together. Go for soft cloth napkins instead of starched.

27. Ice 5 water 1 energy. Don’t waste it! Don’t automatically refill ice bins—wait until they truly get low, and only add as much as you need to get through the crush. Ice is expensive to produce, both in terms of money and resources.

28. If you’re a small restaurant or café, without huge needs or storage space, look into joining (or forming) a local co-op for purchasing green items. Cleaning supplies, paper products, and so on are all cheaper in bulk.

29. educate yourself! From agricultural philosophy to the specifics of res- taurant operations, the number of resources for green issues and prac- tices is ever growing. pick up The Omnivore’s Dilemma by Michael pollan, the Green restaurant association’s Dining Green: A Guide to Creating Environmentally Sustainable Restaurants and Kitchens, and Sourcing Seafood: A Professional’s Guide to Procuring Ocean-friendly Fish and Shellfish by Seafood Choices alliance.

30. Last but not least, educate your staff! they need to know why you’re doing what you’re doing, so that they can spread the word—to the din- ers, and beyond!

▶ check your Knowledge

1. name at least two ways to practice sustainability in a restaurant operation.

Front-of-the-House restaurant systems Point-of-sale systems pOS systems are very common in restaurants and other foodservice settings, such as stadiums, theme parks, airports, and cruise ships. these systems are

LearnInG OBjeCtIve 4 Describe front- and back-of- the-house systems.

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used by hotel properties that have food and beverage and retail outlets. they are used to track food and beverage charges and other retail charges that may occur at a hotel or restaurant. a pOS sys- tem is made up of a number of pOS terminals that interface with a remote central processing unit. a pOS terminal may be used as an electronic cash register, too.

MICrOS, a leading software, hardware, and enterprise systems provider, offers the MICrOS 3700 point-of-sale system, a modular suite of applications that encompasses front-of-the-house, back- of-the-house, and enterprise systems. the popular 3700 pOS is a Microsoft Windows–based touch-screen system where client termi- nals are networked to a central pOS server. transactions are rung at the terminal and posted into the database for later analysis and reporting. the 3700 pOS will support a network of kitchen print- ers so that orders can be presented to line cooks and chefs for food preparation. this pOS system also supports use of a wire- less personal digital assistant (PDA) as an order-taking device so that servers can take orders directly from the guest tableside. Mobile handheld devices can greatly speed the processing of orders to the kitchen and ultimately increase revenues as a result of faster table turns.

Kitchen Display systems Kitchen display systems further enhance the processing of orders to and in the kitchen. printers in the kitchen may be replaced with video monitors and present orders to kitchen associates along with information on how long orders are taking to be prepared. Orders change color or flash on the monitor, which alerts kitchen associates to orders that are taking too long. Kitchen monitors are widely used in quick-service restaurants but are also gaining momentum in table service restaurants. Kitchen video systems also post order preparation time to a central database for later reporting and analysis by management to determine how the kitchen is performing.

guest services solutions Guest services solutions are applications that are designed to help a res- taurateur develop a dining relationship with guests. applications include a frequent-diner management program, delivery management with caller ID interface, and guest-accounts receivable to manage home accounts and gift certificates. all these applications are accessed through the pOS system and give restaurateurs the opportunity to offer their guests convenience, while allowing the restaurateurs to track who their best customers are. Guest activ- ity is posted into the central database and management can develop targeted marketing programs based on this information.

back-of-the-House restaurant systems Back-of-the-house systems are also known as product management systems and include inventory control and food costing, labor management, and financial reporting features. SoftCafe develops software for restaurants and foodservice

A point-of-sale system.

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operations, allowing them to create menus on personal computers. SoftCafe Menupro® creates professional menus at a fraction of the cost of print shop menus, with more than 175 predesigned menu styles; 1,500 menu graphics, watermarks, borders, and food illustrations; more than 100 font types; and a culi- nary spelling checker.5 Beverage inventory systems are discussed in Chapter 9.

restaurant Magic, based in tampa, Florida, has several excellent restau- rant management solutions: Data Central is delivered to a desktop as an enter- prise-quality, secure, and reliable, centralized business management solution to deliver powerful, user-friendly forms and reports to any Web-connected Windows pC in a restaurant organization. Data Central is a technological breakthrough in centralized application and database management because it is written entirely in the visual C# language and is deployed as a Microsoft .net Framework solution. access to information is specified at the log-in level, and applications, reports, and important data are updated once available to all users automatically.6 For a restaurant chain such as Outback Steakhouse, “Secure centralized management of enterprise data is more than a best prac- tice, it is a necessity.”7 the benefits of programs such as Data Central are clear: Multistore managers can now view data for the enterprise. Store-level manag- ers can view data for their store or for any group of stores they choose.

restaurant Magic’s profit and Loss (p&L) reporting delivers profit and loss information on demand, consolidating information from purchasing to produce accurate cost of goods sold. all the key data are collected from the pOS to track all revenues, forms of payments, and complementary activity (such as data from time clocks in order to collect labor costs) and integrate it with all other data to produce p&L reporting daily, weekly, and multiperiod. the profit and Loss reporting allows a collaborative p&L budgeting system where the store and regional managers work together to build budgets and assess results quickly.8

wireless POs systems peter perdikakis is the owner of two Skyline Chili fast-casual restaurants in Cincinnati. the restaurants are unusual in that the kitchen is open and

visible to diners. Servers used to simply yell the orders across the steam table. peter says, “You eat off china and have silverware, but it’s very fast—typically you get your order about two minutes after it’s ordered. Other pOS systems slowed this process down because the servers had to go over to a terminal and write down the order,” which is why peter became interested in wire- less. When he wanted to expand his operations, he selected a pocket pOS system from pixelpoint, consisting of two primary fixed terminals (one at a drive-through window and one at the checkout station), three handheld units for use on the dining floor, and another fixed unit for the back office.

Sample menu.

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the pixelpoint wireless pOS system allows the servers to use a handheld pDa, which operates on the Windows Ce platform, to send orders to the kitchen. Given that wireless pOS systems speed up orders, their use in res- taurants is likely to increase.

Labor Management Most front-of-the-house systems have the ability to track employee work- ing time. a back-of-the-house labor management package adds the ability to manage all of a restaurant’s payroll and human resource information. a labor management system includes a human resources module to track hiring, employee personal information, vacation, I-9 status, security privileges, tax status, availability, and any other information pertinent to employees work- ing at the restaurant. a labor management system would also include sched- uling capability so that managers can create weekly schedules based on forecasted business. Schedules can then be enforced when employees check in and out so that labor costs can be managed.

the labor management package also presents actual work time and pay rates to a payroll processor so that paychecks can be cut and distributed. It also collates tips data and receipt data from the front of the house so that proper tip allocations can be reported according to IrS guidelines.

Financial reporting Back-of-the-house and front-of-the-house systems post data into a relational database located on the central server. the restaurant manager uses these data for reporting and decision making. p&L reports, budget variances, end- of-day reports, and other financial reports are generated from the central database. Financial management reporting needs to be flexible so that res- taurant operators can manipulate it in ways that are useful to them. It is also important to get reports during the day in real time as the day unfolds so that restaurateurs can make decisions before profit is lost. Some reporting packages provide a graphical representation of the financial data displayed continuously on a monitor so that critical restaurant data are always avail- able. this type of reporting provides restaurants with a real-time “heartbeat” for their operations.

Both back-of-the-house and front-of-the-house systems must be reliably linked so that pOS food costs, labor costs, service times, and guest activity can be analyzed on the same reports. restaurant management can then make critical business decisions armed with all necessary information. technology is also used to collect data throughout the day for real-time budget control and “on-the-fly” management of labor effectiveness. Budgets are tight, and this is a way for management to watch, in real time, where their labor costs are at all times.

Personal Digital assistants pDas help hospitality businesses stay effective and efficient by improving time management and helping with faster service. For example, computer systems are used today in restaurants to transmit orders to the kitchen and to retrieve and post guest payments. these actions took extra time in the

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past, when the computer systems were placed at a distance from the server. pDas have been created to allow servers to control their business with their fingertips.

One leading software provider to restaurant operators is restaurant technologies, Inc. (rtI). rtI was founded by two restaurant owners who understood the accounting applications that operate from a central platform known as the restaurant Financial System. Working together, their account- ing programs form an integrated system, with the following modules:

• accounts payable

• Check reconciliation

• Daily store reporting

• General ledger

• payroll

• time keeping

pDas can also be used in the hotel setting. Often, pDas can be integrated with a property management system (pMS) to give housekeepers real-time information about which rooms need to be cleaned and which rooms are not occupied. In the same way, as housekeepers complete the cleaning of a room, they can send a wireless signal to the front desk to affirm that the room is ready to be occupied.

▶ check your Knowledge

1. What are front- and back-of-the-house systems? Describe their purpose and function.

2. Briefly define guest services solutions.

3. explain the ways in which advances in technology aid the inventory process in restaurants.

4. What are the benefits of using a pDa?

Back-of-the-house Operations the back of the house refers to all the areas that guests do not typically come in contact with; it is generally run by the kitchen manager. the back of the house includes purchasing, receiving, storing/issuing, food production, stewarding, budgeting, accounting, and control.

One of the most important aspects to running a successful restaurant is having a strong back-of-the-house operation, particularly in the kitchen. the kitchen is the backbone of every full-service restaurant; thus, it must be well managed and organized. Some of the main considerations in efficiently operating the back of the house include staffing, scheduling, training, food

A waiter uses a tablet to place an order.

LearnInG OBjeCtIve 5 Outline back-of-the-house operations.

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cost analysis, production, management involvement, management follow-up, and employee recognition.

Food Production planning, organizing, and producing food of a consistently high quality are no easy tasks. the kitchen manager, cook, or chef begins the production process by determining the expected volume of business for the next few days. the same period’s sales from the previous year will give a good indi- cation of the expected volume and the breakdown of the number of sales of each menu item. as described earlier, ordering and receiving will have already been done for the day’s production schedule.

the kitchen manager checks the head line cook’s order, which will bring the prep (preparation) area up to the par stock of prepared items. (par stock is the amount of stock to be on hand at any time so reordering takes place to ensure an adequate amount of stock is available.) Most of the prep work is done in the early part of the morning and afternoon. taking advantage of slower times allows the line cooks to do the final preparation just prior to and during the actual meal service.

the kitchen layout is set up according to the business projected as well as the menu design. Most full-service restaurants have similar layouts and designs for their kitchens. the layout consists of the back door area, walk- ins, the freezer, dry storage, prep line, salad bar, cooking line, expediter, des- sert station, and service bar area.

the cooking line is the most important part of the kitchen layout. It might consist of a broiler station, window station, fry station, salad station, sauté station, and pizza station—just a few of the intricate parts that go into the setup of the back of the house. the size of the kitchen and its equipment are all designed according to the sales forecast for the restaurant.

the kitchen will also be set up according to what the customers prefer and order most frequently. For example, if guests eat more broiled or sautéed items, the size of the broiler and sauté must be larger to cope with the demand.

teamwork, a prerequisite for success in all areas of the hospitality and tourism industry, is especially important in the kitchen. Because of the hec- tic pace, pressure builds, and unless each member of the team excels, the result will be food that is delayed, not up to standard, or both.

although organization and performance standards are necessary, it is helping each other with the prepping and the cooking that makes for teamwork. “It’s just like a relay race; we can’t afford to drop the baton,” says amy Lu, kitchen manager of China Coast restau- rant in Los angeles. teamwork in the back of the house is like an orchestra playing in tune, each player adding to the harmony.

another example of organization and teamwork is tGI Fridays five rules of control for running a kitchen:

Chefs working together as a team.

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1. Order it well.

2. receive it well.

3. Store it well.

4. Make it to the recipe.

5. Don’t let it die in the window.

It is amazing to see a kitchen line being overloaded, yet everyone is gratified when the team succeeds in preparing and serving quality food on time.9

a number of chefs are joining the green hospitality movement by encouraging the purchase of sustainable farming produce. More than 20,000 american Culinary Federation members are emphasizing organic and locally grown produce, whole-grain breads, and grass-fed meat products. Sustainable farming is making such a wave in the restaurant industry as a whole that the national restaurant association (nra) began work on a multiyear plan to guide the restaurant and foodservice industry toward envi- ronmentally sound practices and to develop policy initiatives focusing on sustainability. the nra’s goal is to identify practices that can reduce costs for restaurants while encouraging the creation and use of sustainable materials and alternative energy sources.10 as an example of a leadership role in the growth of sustainable food usage is Chipotle Mexican Grill with 1,600 res- taurants that sell about 75 million pounds of naturally raised meat each year. In addition, a significant portion of the chain’s produce is organic. Chipotle’s “Food with Integrity” mission is the cornerstone of everything they do.11

Kitchen/Food Production staffing and scheduling practicing proper staffing is absolutely crucial for the successful running of a kitchen. It is important to have enough employees on the schedule to enable the restaurant, as a whole, to handle the volume on any given shift. Often it is better to overstaff the kitchen, rather than understaff it, for two reasons: First, it is much easier to send an employee home than it is to call someone in. Second, having extra employees on hand allows for cross-training and development, which is becoming a widely used method.

problems can also be eliminated if a staffing plan is created to set needed levels. these levels should be adjusted according to sales trends on a monthly basis.

also crucial to the smooth running of the kitchen is having a competent staff. this means putting the best cooks in the appropriate stations on the line, which will assist in the speed of service, the food quality, and the qual- ity of the operations.

training and Development Implementing a comprehensive training program is vital in the kitchen because of a high turnover rate. trainers should, of course, be qualified and experienced in the kitchen. Often, the most competent chefs are used to

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a D ay i n t H e L i F e O F t i M b r a D y

General Manager, Bob evans restaurant

Courtesy of Christopher and Selina Walker.

Tim Brady is general manager of a Bob Evans restaurant. Unlike many people in the hospitality industry, Tim earned an undergraduate degree in criminal justice and was a teaching assistant for a professor in a public administration master’s degree program when he sought employment as a server at an upscale restaurant in Charlotte, North Carolina. The restaurant manager said, “Well, we’ll give you a shot at it.” So, after two weeks of luncheons, Tim was put on nights and soon became top server and a certified trainer.

About a year and a half later, Tim moved to Tampa, Florida, where he took a job as a server at a restaurant in the Hyde Park area of the city. Soon after, the owner asked him

if he would like to move into management—which he did. With that experience under his belt, so to speak, Tim decided that he would prefer a similar position, but one with benefits, so he became an assistant manager at a Panera Bread restaurant. Within nine months he was promoted to general manager, a position he held for five years. Upon his move to Bob Evans, he started first as an assistant general manager, and then, for the past several years, as a general manager. Tim’s daily routine looks like this:

When Tim arrives at the restaurant he always inspects the parking lot first and cleans it up if necessary. He insists that there be no trash in the lot and that the dumpster lids are closed. Upon entering the building he checks the kitchen for cleanliness, product levels, and freshness. Next he checks the office and posts bills, answers e-mails, and does the truck order.

Tim’s responsibilities as general manager for the Bob Evans restaurant also include that of leader. Tim is respon- sible for training his assistant general manager to be ready for a general manager’s position. (Similarly, the assis- tant general manager is responsible for training the assistant managers to be ready for promotion.) Tim is also responsible for the key result areas like food cost percentage, which is 24 percent, but an even better way of assessing his leadership is the low staff turnover rate, which was just 24 percent last year. These data indicate that Tim leads by example using the “teach, show, do” model. He believes that a manager will be more successful if he or she takes care of staff employees and works alongside of them.

train new hires. Such trainings are usually done on the job and may include study material. Some restaurants may even require new hires to complete a written test, evaluating the skills acquired through the training process.

ensuring adequate training is necessary because the success of the busi- ness lies in the hands of the trainer and the trainee. If employees are prop- erly trained when they begin their employment, little time and money will need to be spent on correcting errors. thorough training also helps in retain- ing employees for longer periods of time.

training, however, does not stop after the new hire passes a test. Developing the skills of all the employees is critical to the growth and success of the kitchen and, ultimately, the restaurant. a development program may con- sist of delegating duties or projects to the staff, allowing them to expand their horizons within the kitchen and the restaurant business. Such duties include projections of sales, inventory, ordering, schedule writing, and training.

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this will help management get feedback on the running of the kitchen and on how well the development program works in their particular opera- tion. also, this allows for internal growth and promotion.

Production Procedures production in the kitchen is key to the success of a restaurant because it relates directly to the recipes on the menu and how much product is on hand to produce the menu. thus, controlling the production process is cru- cial. to undertake such a task, production control sheets are created for each station, for example, broiler, sauté, fry, pantry, window, prep, dish, and dessert. With the control sheets, levels are set up for each day according to sales. Figure 7–2 shows a production sheet for a popular seafood restaurant.

the first step in creating the production sheets is to count the products on hand for each station. after the production levels are determined, the amount of product required to reach the level for each recipe is decided. after these calculations are completed, the sheets are handed to the cooks. It is important to make these calculations before the cooks arrive, consider- ing the amount of prep time that is needed to produce before business is conducted. For instance, if a restaurant is open only for lunch and dinner, enough product should be on hand by 11:00 a.m. to ensure that the cooks are prepared to handle the lunch crowd.

When determining production, par stock levels should be changed weekly according to sales trends. this will help control and minimize waste levels. Waste is a large contributor to food cost; therefore, the kitchen man- ager should determine the product levels necessary to make it through only one day. products have a particular shelf life, and if the kitchen overpro- duces and does not sell the product within its shelf life, it must be thrown away. More important, this practice allows the freshest product to reach the customers on a daily basis.

after the lunch rush, the kitchen manager checks to see how much prod- uct was sold and how much is left for the night shift. (running out of a product is unacceptable and should not happen. If proper production pro- cedures are followed, a restaurant will not have to “86” anything—meaning that an item is no longer available on the menu.) after all production is com- pleted on all stations, the cooks may be checked out. It is essential to check out the cooks and hold them accountable for production levels. If they are not checked out, they will slide on their production, negatively affecting the restaurant and the customer.

the use of production sheets is critical in controlling how the cooks use the products, as well, because production plays a key role in food cost. every recipe has a particular “spec” (specification) to follow. When one devi- ates from the recipe, quality goes down, consistency is lost, and food cost goes up. that is why it is important to follow the recipe at all times.

Management involvement and Follow-Up as in any business, management involvement is vital to the success of a res- taurant. Management should know firsthand what is going on in the back of

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Figure 7–2 • A Production Sheet for a Popular Seafood Restaurant. (Source: Anna Maria Oyster Bar, Inc.)

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the house. It is also important that they be “on the line,” assisting the staff in the preparation of the menu and in the other operations of the kitchen, just as they should be helping when things are rushed. When management is vis- ible to the staff, they are prone to do what they need to be doing at all times, and food quality is more apparent and consistent. Managers should con- stantly be walking and talking food cost, cleanliness, sanitation, and quality. this shows the staff how serious and committed they are to the successful running of the back of the house.

as management spends more time in the kitchen, more knowledge is gained, more confidence is acquired, and more respect is earned. employee– management interaction produces a sense of stability and a strong work ethic among employees, resulting in higher morale and promoting a posi- tive working environment. to ensure that policies and standards are being upheld, management follow-up should happen on a continual basis. this is especially important when cooks are held accountable to specifications and production and when other staff members are given duties to perform. Without follow-up, the restaurant may fold.

employee recognition Employee recognition is an extremely important aspect of back-of-the- house management. recognizing employees for their efforts creates a posi- tive work environment that motivates the staff to excel and ultimately to produce consistently better-quality food for the guests.

recognition can take many different forms, from personally commend- ing a staff person for his or her efforts to recognizing a person in a group setting. By recognizing employees, management can make an immediate impact on the quality of operations. this can be a great tool for building sales, as well as assisting in the overall success of the restaurant.

▶ check your Knowledge

1. Outline back-of-the-house operations.

2. explain the following terms: product specification, production control sheets.

3. Discuss the five rules for running a kitchen that tGI Fridays has implemented.

restaurant Management Financials budgeted costs in a restaurant running a good pace in the restaurant is of absolute importance. every restaurant has different numbers to make (the following came from Chris Della-Cruz, Suso restaurant). these numbers reflect their goals versus actual numbers run for a given week.

LearnInG OBjeCtIve 6 Summarize restaurant management financials.

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t e c H n O L O g y s P O t L i g H t

Courtesy of James McManemon, M.S., University of South Florida Sarasota–Manatee

Restaurants strive for the almost impossible—to make a reasonable profit—and it is technology, and the improved efficiency it lends us, that makes that goal possible in several ways. For example, the POS system is one of the main technology items that can now provide online ordering, inventory control, wireless tableside ordering and payments, real-time alerts, mobile management capabilities, and back office management. In addition, there is an optional redundant system that mirrors the data on the server and saves it on a backup server should the main server go down. That identical data may be used until the main server is operational again.12

Further, restaurant owners are realizing that the 80-million-strong Millennial Generation, now the largest population group in the United States and composed of people 18–34, is dining out in droves. The POS system provides the means for restaurants to connect to these “plugged in” Millennials by offering choice, health, and adventure at an affordable price. Additionally, community involvement is very important to Millennials. They want to know how a restaurant is supporting the community—meaning, more than just recycling by supporting local farms and purchasing from local businesses and supporting local charities. Having a good social media presence is a must, but when it comes to food, Millennials like healthy choices, organic food, and they want to know where the food is coming from. All of this information can be made available to customers with the use of technology.

Restaurants are always looking for useful apps. A good example is the NoWait app, a waitlist-management program that enables guests to compare the wait times at certain restaurants in their areas, put their names on lists, and monitor the times at which they’ll be seated.

Hotel restaurants are “connecting” in fun ways. In July 2012, the restaurants at 19 various Four Seasons hotels participated in a National Ice Cream Day when chefs created ice cream treats that reflected their locale and posted pictures on Instagram. The hotels held live “Insta-Meets” and encouraged guests to share their own photos. Posts came in from around the world. Repeats of this event occurred in July of 2013 and 2014.13

i n t r O D U c i n g c H r i s D e L L a - c r U z , g e n e r a L M a n a g e r O F s U s O r e s t a U r a n t

expectations of the General Manager

The expectations of the general manager are different in each restaurant; however, there are certain commonali- ties as well. Some of these commonalities are as follows:

• General managers answer directly to the owner or to regional directors of major corporations. • General managers are expected to run good numbers for the periods. The numbers analyzed are food cost,

labor cost, and beverage cost. These areas are controlled to produce sufficient profit for the restaurant. • General managers promote good morale and teamwork in the restaurant. Having a positive environment in

the restaurant is of utmost importance. This will not only keep the employees happy, but it will also contrib- ute to providing better service to the guests.

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Duties and responsibilities The general manager of a restaurant is directly in charge of all the operations in the restaurant. General manag- ers are also in charge of the floor managers, kitchen manager, and all the remaining employees in the restaurant.

The general manager should always check on the floor managers to ensure that all policies and regulations are being met. This will keep operations running smoothly.

Another important duty is to organize and control the staffing of the restaurant. The floor managers usually write the employee schedule; however, the general manager is still directly responsible for proper staffing for the period. This will help keep labor costs to about 20 percent of sales. The general manager is also in charge of conducting employee reviews and training.

Qualifications for a general Manager To be hired as a general manager, the following qualifications are necessary:

• The general manager should be very knowledgeable in the restaurant business. • He or she should have previously worked all the stations in a restaurant and be very familiar with them. • The general manager should be able to get along with all people, be fair with all employees, and not

discriminate. • Having a degree is not the most important thing in becoming a general manager. However, a degree is very

useful in moving up the ladder in a company to regional manager, regional director, and so on.

i n t r O D U c i n g c H r i s D e L L a - c r U z , g e n e r a L M a n a g e r O F s U s O r e s t a U r a n t (Continued)

Goal (%) Actual (%) Variance (%)

Food Cost 27.0 27.2 +0.2 Labor Cost 19.9 20.8 +0.9 Beverage Cost 19.0 18.2 −0.8

as can be seen, this restaurant did well with the beverage cost; however, the food cost and the labor cost are two areas to focus on for the upcoming week.

Making good percentages for the restaurant is the most important focus simply because this is where the restaurant makes or does not make a profit. When the general manager runs good numbers, then he or she will receive a large bonus check for contributing to the profit of the restaurant. this is why it is so important to focus on these three key areas.

Purchasing purchasing for restaurants involves procuring the products and services that the restaurant needs to serve its guests. restaurant operators set up purchas- ing systems that determine the following:

• Standards for each item (product specification)

• Systems that minimize effort and maximize control of theft and losses from other sources

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• the amount of each item that should be on hand (par stock and reorder point)

• Who will do the buying and keep the purchasing system in motion

• Who will do the receiving, storage, and issuing of items14

It is desirable for restaurants to establish standards for each product, called a product specification. When ordering meat, for example, the cut, weight, size, percentage of fat content, and number of days aged are all factors that are specified by the purchaser.

establishing systems that minimize effort and maximize control of theft may be done by computer or manually. however, merely computer- izing a system does not make it theft-proof. Instead, employing honest workers is a top priority because temptation is everywhere in the restau- rant industry.

an efficient and effective system establishes a stock level that must be on hand at all times. this is called a par stock level. If the stock on hand falls below that specified point, the computer system automatically reorders a predetermined quantity of the item.

In identifying who will do the buying, it is most important to separate task and responsibility between the person placing the order and the person receiving the goods. this avoids possible theft. the best way to avoid losses is to have the chef prepare the order; the manager or the manager’s designee place the order; and a third person, responsible for the stores, receive the goods together with the chef (or the chef’s designee).

Commercial (for-profit) restaurant and foodservice operators who are part of a chain may have the menu items and order specifications deter- mined at the corporate office. this saves the unit manager from having to order individually; specialists at the corporate office cannot only develop the menu but must include specifications for the ingredients to ensure con- sistency. Both chain and independent restaurants and foodservice operators use similar pre-purchase functions (see Figure 7–3).

• plan menus.

• Determine quality and quantity needed to produce menus.

• Determine inventory stock levels.

• Identify items to purchase by subtracting stock levels from the quantity required to produce menus.

• Write specifications and develop market orders for purchases.

Menu Planning

Food Cost Analysis

Forecasting

Sales

Purchasing Receiving

Service Production Issuing

Storing

Figure 7–3 • Food Cost Control Process.

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professor Stefanelli at the University of nevada, Las vegas, suggests a formal and an informal method of purchasing that includes the following steps:15

Formal Informal

Develop purchase order. Develop purchase order.

establish bid schedule. Quote price.

Issue invitation to bid. Select vendor and place order.

tabulate and evaluate bids.

award contract and issue delivery order.

Inspect/receive deliveries, inventory stores, and record transactions in inventory.

receive and inspect deliveries, store and record transaction.

evaluate and follow up. evaluate and follow up.

Issue food supplies for food production and service.

Issue food supplies for food production and service.

the formal method is generally used by chain restaurant operators and the informal one by independent restaurant operators.

a purchase order comes as a result of the product specification. as it sounds, a purchase order is an order to purchase a certain quantity of an item at a specific price. Many restaurants develop purchase orders for items they need on a regular basis. these are then sent to suppliers for quotations, and samples are sent in for product evaluations. For example, canned items have varying amounts of liquid. typically, it is the drained weight of the product that matters to the restaurant operator. after comparing samples from several vendors, the operator can choose the supplier that best suits the restaurant’s needs.

receiving When placing an order, the restaurant operator specifies the day and time (e.g., Friday, 10:00 a.m. to 12:00 noon) for the delivery to be made. this pre- vents deliveries from being made at inconvenient times.

Receiving is a point of control in the restaurant operation. the pur- pose of receiving is to ensure the quantity, quality, and price are exactly as ordered. the quantity and quality relate to the order specification and the standardized recipe. Depending on the restaurant and the type of food and beverage control system, some perishable items are issued directly to the kitchen, and most of the nonperishable items go into storage.

storing/issuing Control of the stores is often a problem. records must be kept of all items going into and out of the stores. If more than one person has access to the stores, it is difficult to know where to attach responsibility in case of losses.

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Items should be issued from the stores only on an authorized requisi- tion signed by the appropriate person. One restaurateur who has been in business for many years issues stores to the kitchen on a daily basis. no inventory is kept in the production area and there is no access to the stores. to some, this may be overdoing control, but it is hard to fault the results: a good food cost percentage. all items that enter the stores should have a date stamp and be rotated using the first in–first out (FIFO) system.

FIFO is a simple but effective system of ensuring stock rotation. this is achieved by placing the most recent purchases, in rotation, behind previous purchases. Failure to do this can result in spoilage.

Obviously, restaurants should maintain strict controls. among the better- known controls are taking inventory regularly, calculating food and beverage cost percentages, having receiving done by a person other than the person who orders, using a par-stock reordering system, using one entrance/exit for employees and not permitting employees to bring bags into the restaurant with them, employing a good accountant, and, yes, checking the garbage!

budgeting Budgeting costs fall into two categories: fixed and variable. Fixed costs are constant regardless of the volume of business. Fixed costs are rent/lease pay- ments, interest, and depreciation. Variable costs fluctuate with the volume of business. variable costs include controllable expenses such as payroll, benefits, direct operating expense, music and entertainment, marketing and promotion, energy and utility, administrative, and repairs and maintenance.

regardless of sales fluctuations, variable or controllable expenses vary in some controllable proportion to sales. For example, if a restaurant is open on a Monday, it must have a host, server, cook, dishwasher, and so on. the volume of business and sales total may be $750. however, on Friday that sales total might be $2,250 with just a few more staff. the controllable costs increased only slightly in proportion to the sales, and the fixed costs did not change.

restaurant accounting to operate any business efficiently and effectively, it is necessary to determine the mission, goals, and objectives. One of the most important goals in any enterprise is a fair return on investment, otherwise known as profit. In addition, accounting for the income and expenditures is a necessary part of any business enterprise. the restaurant industry has adopted a uniform system of accounts.