OPERATIONS, BUDGETING, CONTROL

Describe front-of-the-house operations.

Describe back-of-the-house operations.

Identify ways to control food, beverage, and labor

costs. Discuss methods of guest check control.

Front of the House - any place in a restaurant where customers might be. - operations and people who interface with customers in dining areas. Back of the House - is a staff-only area. - operations and people responsible for stocking, preparing, cooking food and storing food. Also, the support team of the restaurant operation.

- includes the dining room, bar, even the rest rooms.

- where diners sit

STAFFS: Hosts, Bartenders, Servers, and bussers. Opening and Closing Manager On the Floor - visible representatives of the restaurant - supposed to be courteous, informative, and neatly dressed, since their behavior determines whether or not guests enjoy themselves.

 Hosts- greet guests and seat them; give guests

menu and inform them the name of their server

Servers- takes and bring guests orders, assists

them in anything they will be needing, explains the menu and assists to every guests questions. They need to be knowledgeable about the menu so as to describe and suggestively sell dishes.
Managers- ensures everything goes smoothly, by

helping guests and staff to make their dining experience more enjoyable.

Curbside appeal- first impression of guests where the visual appeal of the building and parking area are considered. The only area that customers see. It should reflect the theme or concept of your restaurant. It also needs to be designed efficiently, balancing ambience with all important seating capacity

ELEMENTS of MANAGEMENT Planning Organizing Communicating Decision- Making Motivation Control

PLANNING
FORECASTING - first thing that managers do is to forecasts how many guests are expected and share that information with the kitchen. GUEST COUNT- arrived at by taking the same day last year and factoring in things like todays weather, day of the week etc. - used to determine the food needed to be prepared and also the staff needed for the day.

ORGANIZING
LEAD SHEET lists staff on both shift so you can easily see who is on duty. - schedules and checklists that are necessary in the operation - lists of staffs and phone numbers plus part timers on call.

 Rewards, or even a sales contest to see who can sell the

most of a particular item, usually wines or cocktails.

CONTROL
- Control especially of Food Costs.
SHOPPER (Mystery Shoppers) - guests who makes a reservation at the restaurant, arrives and has a meal like others but completes a certain report for the restaurant

- The HEART of the operation

- Purchasing, receiving, storage, issuing, food

preparation and service, dishwashing area, sanitation, accounting, budgeting, and control
- KITCHEN: the center of the production - PRODUCTION SHEETS: detail all tasks necessary to

bring food quantities up to par stock and to complete the preparation on time.

 CHEF- ensures all menu items are prepared in

accordance with the standardized recipes and that the line is ready for service. - may act as a caller during service to control the order and expediting of plates at the pass. - everyone is focusing on timing and presentation. The food must be at the right temperature yet not be overcooked; flavorful but not overpowering - After the service, the food is properly put away and the cleanup is done, the par stocks for all stations for the next service are checked, orders are made, and production schedules for all stations are done

Dont manage to cut costsmanage to build revenue. --- Stephen Ananicz

- using standard recipes and control of costs in relation

to sales - variables in the restaurant business than can affect different costs; salaries, food ingredients, beverages, equipment and its maintenance, linen services, cleaning, rent, food wastage, etc.

- Buy the best product and use standardized recipes, and weigh and measure frequently - Really check the items- quality, quantity, weight - Do not over- or under- order - Do a daily inventory (store rooms should be clean and tidy; provide a checklist)

ChefTec- a program that can be used to show actual food cost compared to the ideal food cost (Food Optimization) - Take every item on the menu and cost it out by ingredients; give you what food should have cost for the day; cost, scale, and store recipes etc. FOOD COST PERCENTAGE- Cost of Foods Sold/ Total Food Sales x 100 - should be calculated at least monthly - Another way to control: RECYCLING

- Control for liquor is critical since it involves too much

opportunity for abuse and theft. - It begins with choosing what brand to purchase, then setting a par stock, then they still need to decide the selling price and the mark up - Standard for beverage cost percentage
- Beer pouring cost: 24-25 percent - Wine pouring cost: 26-30 percent

- Liquor pouring cost: 16-20 percent

- Combined beverage pouring cost: 23-25 percent of

beverage sales

TO CONTROL: - All drinks must be poured using the pour spout or a jiggerno free pouringand nothing is served unless there is a check. - Management needs to observe the bar, using a camera and spotters if necessary. - The beverage inventory must be secure at all times. - The beverage inventory must be secure at all times. - The storage area must be kept locked, with only one key available to the manager. - New bottles should be issued only when an old bottle is returned.

 Variable Costs

Payroll (Wages and salaries; benefits)

Direct Operating expenses (music and entertainment) Marketing (sales commission, advertising )

Heat, light, power

Repairs and Maintenance

- Labor is an operational expense in just about any restaurant, predominantly including hourly wages for staff members. - May range depending on the type of restaurant and degree of service provided
- 16 percent of sales in a quick service restaurant - 24 percent in a casual operation - Up to about 30 percent in an upscale restaurant

When determining the number of staff to schedule for a restaurant, take the number of seats and decide how many tables/seats to give each server.

Projecting payroll costs - preparation of staffing schedules and establishing wage rates - depending on the periods of year
CATEGORIES OF PAYROLL and REALATED COSTS: * Variable(percentage ratio to payroll) -include those mandated by law (SSS, unemployment Insurance) * Fixed (dollar amount per employee on the payroll) - employee benefits (health insurance, life insurance)

 Control Your Labor Costs with Improved Worker

Productivity Cross-Train Your Staff

Train your prep cook to handle the grill Train your hostesses to work as back-up servers Train bussers to help run food to customers

Conduct Frequent Staff Audits and Reviews

Guest Check are like blank checks that the operator has already signed. A server can give away Food and beverage and/or sell them and keep the income (If not controlled) The checks can be padded in favor of the server or the guest. (without check guest audits) -servers must be accounted for and at least a spot check of the additions and correct prices made Guest checks can be altered and substitutions can be made (if they are not numbered) -server sign for checks as received and return those not used at the end of the shift

For tight control: every guest check is audited, addition is checked, and every check is accounted for by number. - duplicate-check system to maintain tight control
SERVERS as CASHIERS - bring their own bank in change - do not operate from a cash register but out of their own pockets - deposit income in a night box at the bank

 Various measures of productivity have been developed:

Meals produced per employee per day, meals produced per

employee per hour, etc.

Simplest productivity measure:
Sales generated per employee per year: Divide the number of full-time equivalent employees into the gross sales for the year