Presents methods of pre-cost and pre-control as applied to the menu, purchasing, receiving, storing, issuing, production, sales and service which result in achievement of an operationís profit potential. Emphasizes both manual and computerized approaches. Lecture 3 hours per week.


The general goal is to have the student set up food and beverage cost control systems, which will enable a hospitality operation to better achieve its profit potential. More specifically, the student will gain:

  1. sufficient knowledge to analyze and improve existing food and beverage cost control systems.
  2. sufficient knowledge to analyze and develop food and beverage cost control systems where none presently exist.
  3. understanding of the importance of food and beverage cost controls as an integral part of a hospitality operation.
  4. managerial knowledge to assume responsibility for the control function in a food and beverage operation.
  5. knowledge of computerized control procedures.
Food and Beverage Cost Controls I-II (HRI 251-252) is a series of two three-credit semester courses. HRI 251 is a requirement in all options of the Associate in Applied Science Degree in Hospitality Management.

HRI 251 addresses itself wholly to food cost control and related topics, while HRI 252 concentrates on beverage cost controls and related topics.




Following are the objectives for HRI 251.

  1. To describe the conditions that necessitated development of food cost controls.
  2. To define "cost" and identify the various categories of costs.
  3. To calculate "cost to sales ratios."
  4. To define "sales" and identify various ways of expressing sales.
  5. To memorize the principle objective of a food cost control system.
  6. To explain the cycle of control and identify the aspect of it which should be emphasized.
  7. To recognize those basic operating activities known as the flow of costs.
  8. To define what a standard is.
  9. To explain the relationship between routine procedures and controls.
  10. To illustrate the nature of the Food Controllerís job and his/her position within the operation.
  11. To identify who has ultimate responsibility for food costs.
  12. To state the reasons why the menu is important to a successful food service operation.
  13. To distinguish between the two basic kinds of menus and their impact on average check per quest and total revenue.
  14. To relate the effects of pricing your menu too high or too low.
  15. To recall the importance of the little things in preventing waste.
  16. To identify the primary objective in the purchasing of food.
  17. To know the three requisites to an effective purchasing program.
  18. To define standard purchase specification, and know who establishes it.
  19. To identify the primary objective in receiving food.
  20. To know the importance of the credit memo and how to use it.
  21. To explain how the meat tag is used to establish the positive and. perpetual control of major meat items.
  22. To tell what a receiving clerkís daily report is.
  23. To discuss the way in which goods should be inspected prior tr accepting them.
  24. To identify the primary objective in storing food.
  25. To define par stock.
  26. To know the essentials necessary to achieving basic security over all merchandise.
  27. To identify the primary objective in the issuing of food.
  28. To explain the purpose of the requisition and its use in calculating daily food cost.
  29. To calculate and verify extensions on invoice and requisitions.
  30. To know the essential requirements to obtain quality in food preparation on a continuing basis.
  31. To define standard portion size.
  32. To know the elements of a standard recipe.
  33. To know what yield is
  34. To practice doing a yield test and translating the results into cost management decision.
  35. To calculate the cost factor and use it to determine the cost per servable pound.
  36. To calculate portion costs and use the portion cost multiplier.
  37. To calculate the actual cost of food consumed and the actual cost of food sold.
  38. To calculate the month-end actual food costs.
  39. To calculate daily actual food costs.
  40. To calculate standard food costs.
  41. To list the causes for actual food costs exceeding standard.
  42. To know the objective of food production planning.
  43. To prepare a forecast and utilize the results in making purchasing and production decisions.
  44. To know the various uses of the sales history record.
  45. To assemble the data, prepare the sales history, and analyze its results.
 Following are the objectives for HRI 252.
  1. To know the objective of a beverage cost control system.
  2. To know the primary objective in the purchasing of alcoholic beverages.
  3. To illustrate the procedures involved in a blind tasting.
  4. To differentiate between the purchase request and purchase order.
  5. To describe the duties of the beverage receiving clerk.
  6. To list the considerations in planning a beverage storeroom.
  7. To set up perpetual inventory records.
  8. To analyze an inventory or "ounce" control system.
  9. To analyze mechanical/electronic control systems.
  10. To appraise the standard or "potential" sales value control system.
  11. To list the four standards required of all beverage control systems.
  12. To define: standard drink recipe.
  13. To calculate the weighted average drink size and drink price.
  14. To calculate par stock levels.
  15. To know the function of the "bar requisition and worksheet."
  16. To know the purpose of the summary of actual and potential beverage results.
  17. To identify the various duties of the bartender.
  18. To describe the importance of the location and layout to achieving profitable operation.
  19. To plan a method of increasing wine sales volume.
  20. To restate the guidelines for the proper handling and storage of malt beverages.
  21. To propose methods of increasing draft beer sales through proper maintenance and glassware.
  22. To review the basics of responsible, moderate beverage merchandising.
  23. To identify the different major types of spirits.

Following are the major topics for HRI 251.

  1. Cost and Sales Concepts
  2. Control Principles
  3. Electronic Data Processing and Control
  4. Purchasing Controls
  5. Receiving Controls
  6. Control of Storing, Issuing, and Transfers
  7. Daily Food Cost Determinations
  8. Production Standards and Portion Costs
  9. Forecasting Sales and Controlling Production
  10. Food Sales Control
Following are the major topics for HRI 252.
  1. Purchasing, Receiving, Storing, and Issuing of Beverages
  2. Beverage Production Control
  3. Inventory/Ounce Control System
  4. Potential Sales Value Control System
  5. Measuring the Effectiveness of Beverage Control, Potential vs. Actual Sales Values
  6. Product Summaries on Wine, Beers and Spirits
  7. Responsible Beverage Merchandising
Revised 3/02

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