Table of Contents

Table of Contents

Chapter 1 Revenue and Cost Concepts…………………………. 1
Introduction ……………………………………………………………. 2
Profit – The Reward for Service………………………………. 2
Crtical Point……………………………………………………………… 4
Revenue or Sales……………………………………………………….. 4
Self Check No. 1………………………………………………………… 7
Self Check No. 2 Daily Sales and Covers……………………. 8
Self Check No. 3 Transaction Count & Average Check. 9
Self Check No. 4………………………………………………………… 10
Expenses (Costs)……………………………………………………….. 13

Chapter 2 Sales History and Forecasting……………………….. 15
Predicting Future Sales……………………………………………… 16
Self Check No. 5 Sales Variance………………………………… 21
Self Check No. 5 Fixed and Rolling Base Average……… 22
Self Check No. 6 Rolling Base Average……………………… 23
Self Check No. 8 Comparative Study………………………… 24

Chapter 3 The Control Process………………………………….. 25
Control Techniques…………………………………………………… 26
Cost Control……………………………………………………………… 26
Determining Inventory Levels…………………………………… 27
Setting the Purchase Point………………………………………… 29
Preparing the Purchase……………………………………………… 31
Receiving Record or Daily Receiving Sheet……………….. 33
Self Check No. 8 Extension Price and Par Value……….. 35
Self Check No. 9 Safety Stocks and Working Stocks….. 36

Chapter 4 Food Cost…………………………………………….. 39
Standardized Recipes………………………………………………… 39
Factor Method………………………………………………………….. 43
Variations on the Basic Cost of Food Sold Formula…… 46
Self Check No. 11………………………………………………………. 51
Estimating Daily Cost of Food Sold…………………………… 53
Food Cost %……………………………………………………………… 55

Chapter 5 Beverage Cost………………………………………… 57
Forecasting Beer Sales……………………………………………….. 59
Forecasting Sales by the Bottle/Can…………………………… 59
Cost of Beverage Sold and % Beverage Cost……………… 61
Forecasting Wine by the Glass…………………………………… 62
Beverage Purchase Order………………………………………….. 62
Receiving Beverage Products…………………………………….. 63
Inventory Turn Over…………………………………………………. 63

CHAPTER 6 Manpower Cost………………………………………. 67
Ten Key Factors Affecting Employee Productivity…….. 68

CHAPTER 7 Operating Cost/Expense (OPEX)……………………… 72
References ……………………………………………………….. 75