Assignment on the Topic of Food & Beverage Control Measure

South Asian School of Tourism and Hotel Management

Old Airport, Malaya Road, Biratnagar-14, Nepal

(Affilated to Purwanchal University)

Submitted By Submitted To

Name: Dibash Chaudhary Name: Rejan Pokhrel

Programme: BHM Food & Beverage Department

Level: Bachelor

Submitted in the partial fulfillment of the course curriculum of Bachelor in Hotel Management
 Acknowledgement

I am grateful to Mr. Rejan Pokhrel, facilitator in the stream of Food and Beverage Department. I
am extremely thankful and indebted to him for experience and valuable guidance,
encouragement extended to him to use.

I take this opportunity to express gratitude to all of the department faculty members for their
help and support. I also thank my parents for the encouragement, support and attention. I am
also grateful to my friends who support me through this venture.

Thank You!!
Table of Contents
1. Cost Control ................................................................................................................................ 1

2. Sales Control ............................................................................................................................... 2

3. K.O.T ............................................................................................................................................ 3

3.1 KOT/ BILL CONTROL SYSTEM ................................................................................................ 3

3.2 IMPORTANCE OF KOT ........................................................................................................... 4

3.3 TYPES OF KOT: ....................................................................................................................... 4

4. Requisition and its role ............................................................................................................... 5

4.1 Steps of Purchase Requisition Process: ................................................................................ 6

5. Standard Recipe : ........................................................................................................................ 7

5.1 Objectives of Standard Recipe .............................................................................................. 7

6. Conclusion ................................................................................................................................... 9
1. Cost Control
Cost control is the practice of identifying and reducing business expenses to increase profits,
and it starts with the budgeting process. A business owner compares actual results with the
budgeted expectations and if actual costs are higher than planned, management takes action.
The process by means of which this is accomplished includes the following.

 Ordering: Ordering costs are the expenses incurred to create and process an order to a
supplier. These costs are included in the determination of the economic order quantity
for an inventory item. ... Cost to prepare a purchase order. Cost of the labor required to
inspect goods when they are received.
 Purchasing: Purchasing can be defined as a function concerned with the search,
selection, purchase, receipt, storage and final use of a commodity in accordance with
the catering policy of the establishment. The person employed to purchase foods and
beverages for an establishment will be responsible for not only purchasing, but also for
the receiving, storage and issuing of all commodities as well as being involved with the
purpose for which items are purchased and the final use of them. Coordinating with
production departments to standardize commodities and therefore reduce stock levels.
Purchasing is not a separate activity. What how and when you buy must always reflect
the overall goals of your establishment. Purchase the right product, right quality, right
price, right time and from the right source.
 Receiving: In large hotels, receiving is a specialized job. While receiving the food or
beverage items check delivery note to see if the products delivered agree with it.
Inspect products/ raw materials to determine if they are in agreement with the
purchase order and specification. List all items received on the daily receiving report.
Accept the products by signing the delivery note and returning the copy to the delivery
driver. Deliver goods to the correct place.
 Storing & Issuing: The main function of this department is to store and issue food and
beverages items that pertain to food and beverages operations of the hotel. Raw
material should be stored correctly under the right conditions and temperature. A

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 method of pricing the materials must be decided and adopted for charging the food to
the various departments. The cost of items does not remain fixed over a period of time;
over a period of one year a stores item may well have several prices. The establishment
must decide method of pricing (actual purchase price, simple average weight and
weighted average price) as per their convenience.
 Preparing and Producing: A production system needs to be organized to produce the
right quantity of food at correct standards, for the required number of people, on time,
making best possible use of staff, equipment and material available. A method of
predicting the number of Customers using the catering facilities on a specific day, and
also of predicting as accurately as possible what items they will eat and drink. A method
of controlling food and beverage costs in advance of the preparation and service stages.
It is done by preparing and using standard recipes for all food and beverage items and
also by using portion control equipment.
 Selling: After the selling price is fixed, the price is verified with the cost price and the
reconciliation statement generated. It is necessary to ensure that all items sold have
been paid for and that the money is received or credit has been authorized. This is
necessary to keep control of the number of covers sold and of the items sold. This may
be done through a standard type of waiter’s check system. The sales control is done
with KOT and BOT for kitchen and bar, respectively, and tailed with the sales.
 Accounting: Accounting costs are the explicit costs, also known hard costs that are seen
as money out of your bank account that you need to run your business. These are
production costs, lease payments, marketing budgets and payroll. In other words, these
are the real costs in manufacturing, marketing and delivering your products.

2. Sales Control
Sales control is one of the functions of sales management which ensures the sales achievement
and profit objectives of the company by coordinating effectively and efficiently the
different sales functions. It’s importance are as below:

 Establishing sales Territories.

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 Allocation of sales Quota.
 Maintaining contact with a salesperson.
 Determining authorities and rights of salespersons.
 Salesman's Reporting.
 Complaints and Objection Notes.
 Analyzing Sales Expenses.

3. K.O.T
3.1 KOT/ BILL CONTROL SYSTEM

Control implies checking at every stage, enables food and drinks to be coordinated with the aim
of presenting a correct bill to each guest without delay. In a food and beverage operation, for
any food item and non-alcoholic beverage item a kitchen order ticket or KOT has to be made by
the F&B personnel and concerned item is provided by the kitchen to the F&B personnel only on
presenting the KOT. KOT is the written proof that guest has been served with the item he has
ordered. KOT is very important tool of F&B control system. Any food item ordered by the guest
is written on KOT. Similarly all alcoholic beverages has to be obtained from the bar is noted
down on BOT or the bar order ticket and is presented to the barman and it is only then the
barman will provide the waiter with the alcoholic beverage.

Figure 1: KOT

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  The first copy goes to kitchen/bar so that the kitchen produces the food that guest has
ordered.
 The 2nd copy goes to the cashier so that based on the information given on KOT/BOT
he/she can raise the bill so that the guest can be charged for what he has consumed.
This copy is attached with the 2nd copy of the bill which goes to the accounts ( the
1st copy of the bill is presented to the guest)
 The 3rd copy of the KOT/BOT remains with the waiter so that he or she can follow up the
guest order and he remembers exactly what is ordered on which table.
 The 4th copy of the KOT/BOT remains in the KOT/BOT for future reference if required.

3.2 IMPORTANCE OF KOT

KOT is the written proof of the day’s activities. It is full details of the items being sold on that
particular date. Analysis of KOT can be done and records can be kept for future reference i.e. to
prepare the budget for the same month next year. Plan out certain events to find out which
item is the most selling and which is not. If needed the menu can be revised. The waiter’s
performance can also be judged through the KOT. If he is performing well he can be appraised
and if he is lacking he can be briefed about the proceedings.

3.3 TYPES OF KOT:

1) RETOUR OR RETURN CHECK: If a food item has

to be returned for some reason, another check or
KOT has to be made out, marked return and sent
with the dish in order to cancel the transaction. It
has to be insured that the item is taken off the bill
by sending the copy to the cashier.

2) EN PLACE: It literally means “in its place”. In

case of a table d hote menu the guest may wish a
slight change in a particular dish, for example
jacket potatoes instead of French fries. So, an en place check has to be made. The check has to

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be signed by a senior authority like the restaurant manager to show that this alteration is
permitted at no extra charge.

3) SUIVANT: Where it is necessary to write out more than one food check for a meal, e.g., when
a sweet dish check or KOT is written out after the main course has been served. At the head of
this check word SUIVANT should be written, which means the following check, and shows that
one check has already been written out for that particular table.

4) SUPPLIMENT CHECK: Sometimes a waiter requires ingredients from various sources to finish
a dish. For e.g. for a cocktail or a mocktail lemon is required. A special check or a written
supplement has to be made out in this case. This should be signed by the restaurant manager
and normally there is no extra charge.

5) NO CHARGE: Any complimentary items served to the guest or the executives of the hotel
who are entitled to have food in the restaurant are written on this check and no bill is raised

6) ACCIDENT CHECK: It occasionally happens that the waiter may have an accident in the room
and perhaps some food dishes are dropped. These must be replaced without any extra charge
to the guest. Here a check must be made named ACCIDENT CHECK. It will show the number of
portions of the particular dish required and should be signed by the restaurant manager. No
charge is made.

4. Requisition and its role

Purchase Requisition is one type of “Form” which is used by the user department to request for
the material. Through this document the user department notifies the procurement
department to procure raw materials for the production, to procure office stationery for office
work, and other materials for the several departments.

Purchase Requisition should be pre-numbered and to be triplicate in form and these three
copies should be in separate color. One Copy should be retained to the user department, one

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copy should be retained to purchase department for their further process and one copy should
be retained with the requisition books.

A Purchase requisition should be signed and verified by the head user department and to be
approved by the concerned authority otherwise excessive goods to be procured or goods could
be procured for using personal use.

 However, the purchase requisition could be received from-

 Store Keeper where standards level of material is maintained.
 Production Control Department
 Plant Engineer
 departmental head for small supplies, office sundries etc.
 Other users department

4.1 Steps of Purchase Requisition Process:

Purchase requisition is the internal document using to procure the required materials. Purchase
Requisition doesn’t have any specific format , organizations design it considering their own
system. However, following are the steps commonly maintain as the process of purchase
requisition:

Step -01: User Department initiates the purchase requisition and forwards the requisition to the
Inventory Department. Inventory department cheque the balance of respective materials and
forward the requisition to the purchasing department. In this respect, the user department may
request manually filling the prescribed form of the organization. Some organization using
computer software Purchase requisition. Computer software requisition is considered as the
safest way of requesting the purchase because it reduces the chances of procuring unnecessary
materials and prevent the fraud of the organization.

Step-02: After getting purchase requisition, the Purchase Department verify the information
used in the purchase requisition. Purchase Office confirm whether the requisition is properly
signed by the concerned authority. If everything seems to be correct by the purchasing
department, they may generate a purchase order.

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Step-03: Some organization, may forward the purchase requisition for further queries you
confirm whether user department exceeds their limits for the respect goods, or there is any
abnormal request.

However, this is all about the process of Purchase requisition.

5. Standard Recipe:
Standard recipe is the method of standardizing recipes in such a way so that there is tight
control on cost and quantity. Standardization should not be allowed to stifle the individual
chef’s flair.

A hotel can control quantities, quality and cost more easily. It is most useful to use standard
recipe in a hotel where there are a number of chefs cooking the food. The standard recipe lays
down all the ingredients, method of production and quantities used. It indicates the number of
portions to be served. This will determine the size of portion or production control. A section
giving variation can be added to reduce the total number of recipes required.

5.1 Objectives of Standard Recipe

 To determine the quantity and quality of ingredient to be used.
 To obtain the yield obtainable from a recipe.
 To determine the cost per portion.
 To determine the nutritional value.
 To facilitate portion control.
 It helps in costing of dishes, pricing menus for the banquet.
 It helps in uniform quality and taste.

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Figure 2: Standard Recipe Card

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6. Conclusion
Competitive sourcing appears to generate personnel cost savings: In this study, the expected
annual personnel cost savings ranged between 34 percent and 59 percent of baseline costs.
Moreover, costs for private contractors and government MEOs did not escalate from expected
levels except where observed cost increases could be attributed to expansion in mission at the
installation. The personnel cost savings we observed were achieved primarily by using fewer
people and downgrading positions. Contrary to expectations, substituting capital for labor or
lower wage and benefit costs did not appear to be important sources of personnel cost savings
in the competitions we examined. To accomplish work with fewer people, both contractors and
government managers employed a wide variety of techniques—multiskilling, organizational
restructuring, civilianization, increasing labor availability, increasing labor intensity, and
reducing the scope of work. Most of these personnel cost saving techniques were used by both
contractors and in-house managers. This finding suggests that neither contractors nor in-house
managers have an inherent advantage when reducing personnel costs. The savings in similar
ways lends encouragement to the hypothesis that the techniques used to generate labor cost
savings during a competition could be applied more broadly to generate government efficiency
improvements.