1. Principles of Food, Beverage, and Labor Cost
Controls, Ninth Edition

2.  Who does the purchasing?
◦ Owners
◦ Managers
◦ Chef
◦ Steward
 One person responsible so they can be held
accountable

3.  Perishables; those items that are typically fresh
foods, and have a relatively short shelf life
 Non-perishables; those food items that have a
relatively longer shelf life
◦ Groceries
◦ Staples
◦ Storeroom items

4. 1. Quality of food purchased
2. Quantity of food purchased
3. Prices at which food is purchased

5. 1. They force owners or managers to determine exact
requirements in advance
2. They are often useful in menu preparation
3. They eliminate misunderstandings between stewards
and purveyors
4. Allows for true competitive bidding
5. Eliminates need for detailed verbal descriptions
6. They facilitate checking food as it is received

6.  Steward’s market quotation list - a form often used
as a tool by food purchasers for;
◦ Taking daily inventory of perishables
◦ Determining suitable order quantities
◦ Recording market quotations
◦ Selecting vendors
 Par stock – maximum quantity that should be on
hand at any given time

7.  Periodic order method:
Amount required for the upcoming period
- Amount presently on hand
+ Amount wanted on hand at the end of the period to last
until the next delivery
= Amount to order

8.  Perpetual inventory method:
Par stock
- Reorder point
= Subtotal
+ Normal usage until delivery
= Reorder quantity

9. 1. Storage space
2. Limits on total value of inventory prescribed by
management
3. Desired frequency of ordering
4. Usage
5. Purveyors’ minimum order requirements

10. 1. Wholesalers
2. Local Producers
3. Manufacturers
4. Packers
5. Local farmers
6. Retailers
7. Cooperative associations

11. Advantages:
 Foods and beverages can be purchased at lower
prices because of volume
 Desired quality can be obtained more readily
because the steward has a greater choice of markets
 Foods can be obtained that meet specs
 Larger inventories can be maintained, ensuring
reliable supply to individual units
 Possibility of dishonest purchasing in individual units
are greatly reduced

12. Disadvantages:
 Each unit must accept the standard item in stock
and has little freedom to purchase for its own
particular needs
 Units can’t take advantage of local specials
 Menus are ordinarily standardized, limiting the
individual unit managers’ freedom

13. 1. Telephone
2. Fax
3. Quotation sheets obtained by mail
4. Fax modem
5. Information supplied by salespersons
6. Direct computer links with purveyors via the
internet or dedicated telephone line

14. 1. The quantity delivered should be the same as
the quantity listed on the Steward’s Market
Quotation List and the invoice
2. The quality delivered should conform to the
establishment’s specifications
3. The prices on the invoice should match those
circled on the Steward’s Market Quotation List

15. Meats R’ Us
777 Cow Pasture Way
Bulls tail, IO
To: Grandview Bistro Date: October 3, 20XX
Quantity Unit Description Unit Price Amount
20 lbs. Beef tenderloin 9.20 184.00
20 lbs. Leg of lamb 12.40 248.00
$432.00

16.  Regardless of the methods used by employees to
requisition food and beverage products, or
management to issue these, inventory levels will be
affected.
 It will be your responsibility and that of your
purchasing agent to monitor this movement and
purchase additional products, as needed.
 Re-stocking the inventory is critical if product
shortages are to be avoided and if product necessary
for menu item preparation is to be available.

17.  Operators must be careful not to overload storage capacity.
Increased inventory of items generally leads to greater
spoilage and loss due to theft.
 Shelf life is the amount of time a food item retains its
maximum freshness, flavor, and quality while in storage.
The shelf life of food products varies greatly.
 The cost to the vendor for frequent deliveries will be
reflected in the cost of the goods to the operator.

18. 1. Storage capacity
2. Item perishability
3. Vendor delivery schedule
4. Potential savings from increased purchase size
5. Operating calendar
6. Relative importance of stock outages
7. Value of inventory dollars to the operator

19. 1. Verify the quantity, quality, and price for each item
conforms exactly to the order placed
2. Verify invoice with rubber invoice stamp
3. List foods delivered each day on the receiving
Clerk’s Daily Report for that day
4. Forward paperwork to proper personnel
5. Move food to appropriate storage areas

20. 1. Verification of the date food received
2. Signature of the receiving clerk who vouches for the
accuracy of the order
3. Steward’s signature, acknowledging delivery of food
items
4. Food controller’s verification calculations are correct on
the invoice
5. Signatory approval of the bill for payment by an
authorized individual before a check is drawn

21.  Directs – foods that extremely perishable by
nature, purchased daily.
◦ For immediate use
◦ Considered to be issued on delivery
◦ Go directly onto today’s food cost
 Stores – perishable but have a relatively longer
shelf life.
◦ Not for immediate use
◦ Included on food cost when they are issued

22.  The great problem in employing receiving
personnel is with the vast amount of knowledge of
foods these workers require
 This may explain why some restaurants do not
require quality checks upon delivery
 Someone has to do it!!!
 If not your customers will!!!
© John Wiley & Sons, Inc. 2009