n Choose one topic about the restaurant operations
you’re interested and explore more information about it.
n Research on how restaurants do their forecasting
and food cost control process.
n Find out more up-to-date local trends about
restaurant operations
A.
Front-of-the-House
Restaurant Systems
Ø
Point-of-sale
(POS) systems:
They are used to
track food and beverage charges and other retail charges that may occur at a
hotel or restaurant. It 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.
Ø Touch
Computer and POS Computer Options
Tablet Computers, POS Computer Systems, and Touch Point of Sale Systems here are designed for General or Special-use Point of Sale Transactions in Restaurant and Retail Environments.
Tablet Computers, POS Computer Systems, and Touch Point of Sale Systems here are designed for General or Special-use Point of Sale Transactions in Restaurant and Retail Environments.
Ø Touch Display and Touch Screen Monitor
The quickest and most efficient way to input an order at a restaurant or ring up a sale at a retail store is by using a Touch Screen Monitor. With the right POS Software, ringing up a patron's order is as easy as the push of a button. We have a number of LCD Touch Screen units to choose from.
Ø POS Receipt Printer and Barcode Printing Options
At POS Nation we help our
customers select the right POS printer for the job. Whether it's an epson
printer, star printer, or zebra barcode printer we have the right receipt
printer for the job. Our impact (dot-matrix) printers are ideal as kitchen
printers in a restaurant environment. We suggest using impact printers for this since the
paper is not affected by heat lamps and they have the presence to alert staff
of new orders.
Ø Cash Drawer Options and Tills
When
it comes to protecting the money that accumulates during the day a strong cash
drawer to protect the cash is vital. Our cash drawers, cash boxes, and tills
are industrial and commercial grade. They're stronger and more durable than a
normal cash register drawer. Access to the POS cash drawer is granted by the POS software and system for optimum security.
Ø
Kitchen
Display Systems:
Printers in
the kitchen are replaced with video monitors and presents orders to kitchen
associates along with information on how long orders are taking to be prepared.
It further enhances the processing of orders to and in the kitchen. 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 system also post order preparation times to a central data base for later
reporting and analysis by management to determine how the kitchen is
performing.
Some of the
Kitchen Controller is designed with rubber caps on each end that help seal the
internal components from the outside environment. The rubber caps also act as
feet for the controller and provide excellent balance so that the Controller can sit on right / left side
or top / bottom without turning over.
Expansion options are available through
the use of the Compact Flash slot and mini-PCI slot. The CF slot can be used
for additional storage. Wireless networking is available as an upgrade by
installing a wireless card in the internal mini-PCI slot and attaching a
wireless antenna to the rear panel. Video support for the KPS system is offered
through the DB-15 analog connector on the Controller. The screen resolutions
supported by the
Controller. Digital video is also available
through the optional DVI connector.
Following are a
few key features of the KDS system:
Ø Order Preparation
§
Highlights alert orders in yellow or red to indicate an
order has exceeded expected prep time
§
Displays each order in either List Mode or Chit Mode and
monitors time to prepare
§
Allows user to define preparation times for both
appetizers and entrees
§
Intuitive icons display Rush Order, VIP and Void status
Display features such
as All Day, Order Done, and Order Recall make information readily available
Ø Speed of Service Displays
§
View the status of each table in the restaurant at a
glance
§
Table buttons change color to indicate
§
Table Vacant
§
Guest Seated
§
Kitchen Working on Order
§
Entree Served
§
Order Late
Ø Reporting and Statistics
§
Captures service times for different courses at the
various prep stations
Generates real-time
reports on kitchen performance
Ø
Guest
Services Solutions:
Applications
that are designed to help 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 certificate management. All these applications are accessed through
the POS system and give restaurateurs the opportunities to offer their guests
convenience, while allowing the restaurateurs to track who their best customers
are. Guest activity is posted into the central database and management can
develop targeted marking programs based on this information. 
Ø Some
of the Key Benefits:
Build a
guest information database of your loyal customers
Set up
multiple promotional offers to keep guests coming back
Establish
times of day or day of week promotions to fill “softer hour” seats with guests
Create
marketing programs in-house
Import
guest information from most other programs
Configure
POS printers for coupon printing
The Guest Services Solution also offers an optional delivery and carry-out
solution to streamline the ordering process for your take-away business.
Ø Some of the Key Features:Print
address and delivery information on the POS guest check
Store
order details
Retrieve
delivery information for repeat customers
Enter
additional “notes”
Previous
order recall
Target
delivery time
Caller ID
functionality
B. Forecasting
& food cost control
Costs or expenses are
usually classified either as direct costs or overheads. Direct costs can be
clearly associated, for example, with the production of meals, the departmental
payroll or the maintenance of kitchen hygiene. Overheads are costs that cannot
be charged to production, such as property insurance, rent and utility rates.
Costs can also be divided into those that can be controlled by the kitchen
staff and those that cannot. Uncontrollable costs have to be paid whether the
restaurant is open or closed. The focus must be on controllable costs: weekly
wages, overtime, food ingredients, laundry, cleaning materials, etc. Changes in
the cost of ingredients and the amount of wastage can have a huge impact on the
food cost percentage and thereby can either reduce or increase profit.
Chefs and restaurant
managers use cost control to keep track of the history of sales in order to
predict the future of sales. The past records of seasonal activity may give a better
picture of future seasonal activities in order for chefs and managers to order
the correct amount of food and beverages and thereby avoid over ordering and
food wastage. If the restaurant has too much food on hand, the quality of
products will suffer and money will be lost. As in most, if not all,
businesses, cost control is an intrinsic part of day-to-day operations that is
necessary to ensure the restaurant's profitability. Financial statements,
inventory lists, purchasing and history of sales are all important components
of cost control.
Ø Pricing the Menu
Pricing
the menu involves calculating the price to be charged for the various dishes
and beverages served. This price is influenced by such things as the amount of
table service provided, the cost of the table settings and décor, as well as
the actual cost of the food in the recipe. This same applies to beverages and
alcoholic beverages as well. One way of pricing is to calculate the cost of
food and then add an amount to cover wages, overheads and profit. A better
method is using the food cost percentage.
Ø Food Cost
Food cost (cost of sales) is the actual cost of purchasing the raw
food products and related ingredients. It is the amount spent on food in a food
service operation. (Beverage costs could be included in the food cost or they
may be separated as beverage cost / beverage cost percentage.) The costs are
measured and expressed in terms of a percentage, which is referred to as the
food cost percentage. The percentage can be achieved by the following formula:
(Cost of Food Sold / Total Food Sales = Food Cost Percentage). The estimate of
daily food costs in the best control you have because it is up-to-date
information. The field averages can be also used to determine the average costs
for different types of restaurant cuisines.
FOOD COST PERCENTAGES:
|
Buffet
|
35%
- 46%
|
|
Cafeteria
|
33%
- 37%
|
|
Fast
Food
|
28%
- 39%
|
|
Fine
Dining
|
25%
-38%
|
|
Casual
Restaurant
|
27%
- 36%
|
Ø Sales Price
The sales price for the item
can be then achieved by the following formula: Cost of food / Food Cost
Percentage = Sales price before tax.
Ø Median Purchase Price
In the first phases of
restaurant planning, it is good to determine the estimated median purchase
price. This can be achieved by collecting the entrée and beverage prices and
their sales distribution from all the restaurant sales.
Sales Distribution Food % x
Sales Price of food + Sales Distribution Beverage % x Sales Price of
Beverage)/100 = Median Price
For
example:
Food Sales is 45% and Beverage Sales is 55%. The sales price of
food is 14€ and the sales price of beverage is 6.50€. à (45% x 14€ + 55% x 6.50€) / 100 = 9.875 = 9.88€ Median Purchase
Price
Ø Gross Profit
The Gross Profit can be
determined by the following method: Gross Profit % = 100% - Food Cost% The
median gross profit can be then determined by the following method:
Sales
Distribution Food % x Food Gross Profit % + Sales Distribution Beverage % x
Beverage Gross Profit % = Median Gross Profit %
For Example: 45% x 65% + 55% x 68% = 66.5% Median Gross Profit
Ø Sales Forecast
By using the median purchase price, chefs and managers are able to
forecast the sales per week or month. First, the flow of customers or purchases
needs to be determined. Second, the number of purchases per day or per week is
then multiplied by the median purchase price. This gives the estimated sales
amount for a day, per week or per month.
Ø Labor Cost Control
Payroll cost is the total
cost of employee labor. These costs can have a huge impact on the overall
profit of the restaurant operation. If there are too many employees and not
enough customers purchasing the meals, the labor cost could quickly reduce the
overall profit. Controlling labor costs is an everyday activity of a restaurant
operation.
Labor Cost Percentage can be
achieved by the following method:
Cost of Labor / Total Sales
= Labor Cost Percentage
Employees receive their
regular hourly or salaried wage. However, the restaurant operation has to add
on non-wage labor costs, such as social security and holiday pay, to the
regular hourly or salaried wage. The amount varies between countries and
cities; from 20% to 60%. The restaurant operation has to include non-wage labor
costs in its calculations in order to be able to establish accurate labor cost
statistics. In some countries, working on Sundays and major holidays may
increase employees' wages by up to 100%. This variable also needs to be taken
into consideration.
In labor planning, it is
good to calculate median hourly wage and then add other labor fees to receive
the total hourly labor expense. This number can be then used to calculate
daily, weekly and monthly labor expenses. Another major duty of a chef or
manager is to determine the required hours for production and service; kitchen
labor hours and dining room labor hours. Once these hours are determined, the
labor expenses can be then calculated.
The minimum required
turnover to cover labor costs can be then achieved by the following formula:
Labor expenses / preferred
labor cost percentage = Minimum required turnover
For the minimum required
sales, generally the sales tax is added and the minimum required sales amount
can be then achieved. (Minimum required turnover x (100% + VAT [value-added
tax]) = Minimum Required Sales) The Minimum Required Sales can be then compared
to the estimated sales from the Sales Forecast to see if there are enough sales
to compensate the labor costs or vice versa.
Ø The Restaurant Sale Statistics
The restaurant sales
statistics are an important way to compare the sales activity with the industry
averages to see if the operation meets industry standards. This is helpful when
trying to determine the relative profitability of the restaurant operation.
A.
up-to-date
local trends
1.
Internet
technologies: ordering - promotions - credit cards – banking-
reservations - food ideas - cocktail recipes.
2.
Social
Media – Secret of Successful Operators: restaurateurs that promote their restaurants
through the use of social media see an increase in sales. Restaurant operators are employing social media
to drive revenues, both through tightly targeted ‘touchs’ and through more
broadly based methods including: 1) email messages about special offerings and
events 2) Facebook invitations to “friends” for in-store promotions, 3) Tweet
messages about limited time offerings, and 4) aggregated promo services
3.
Increased takeout meals, especially at lunch, and more home meal
replacement (for dinner)
4.
Increased food safety and sanitation
5.
Guests becoming more sophisticated and needing more things to excited
them
6.
More food court restaurants in malls, movie theater complexes, and
colleges and universities where guests line up (similar to a cafeteria), select
their food (which a service places on a tray), and pay a cashier.
7.
With more restaurants in each segment, the segments are increasingly split
into upper, middle, and lower tiers.
8.
Multi-restaurant locations
9.
Difficulty of finding good employees
Dodgshun, Graham & Peters, Michel (2004): Cookery For the
Hospitality Industry, Fifth Edition. Cambridge University Press.
Dopson, Hays & Miller (2008): Food and Beverage Cost Control,
Fourth Edition. Wiley. Chapters:1, 2, 7 & 8.
Jones, Terry (2004): Culinary Calculations. Wiley. Chapters: 6, 7
& 8.
Sanders, Edward E & Hill, Timothy H (2001): Foodservice
Profitability, Second Edition. Prentice Hall. Chapters 1, 2,8 & 13.
Walker, John R (2008): The Restaurant From Concept to Operation,
Fifth Edition. Wiley. Chapters: 1, 3, 7 & 14-16.
