Introduction:

The Cost Control in Food and Beverage course is designed to equip professionals in the hospitality industry with the essential skills and knowledge to manage and optimize costs in food and beverage operations. Given the significant impact that food and beverage costs have on a business’s profitability, mastering cost control techniques is crucial for achieving financial success. This course covers key areas such as inventory management, menu engineering, waste reduction, and pricing strategies, providing participants with practical tools to reduce costs while maintaining quality and customer satisfaction. With the hospitality industry becoming increasingly competitive, effective cost control is more important than ever for driving sustainable profitability.

Objectives:

By the end of this course, participants will:

1. Understand the fundamentals of cost control in food and beverage operations.
2. Learn how to analyze and manage food and beverage costs through effective inventory management.
3. Develop skills in menu engineering to optimize profitability and customer satisfaction.
4. Gain techniques for reducing waste and improving operational efficiency.
5. Understand pricing strategies and how they impact cost control.
6. Learn to implement cost control systems and monitor key performance indicators (KPIs) to track progress.

Who Should Attend?

This course is ideal for:

• Restaurant managers, owners, and operators.
• Food and beverage supervisors and directors.
• Financial managers and accountants in hospitality.
• Kitchen and culinary professionals looking to optimize operations.
• Hospitality consultants and advisors.
• Anyone involved in managing or overseeing food and beverage costs in hotels, restaurants, and catering services.

Day 1: Introduction to Cost Control in Food and Beverage

• Session 1: Understanding Food and Beverage Cost Control
  • Key concepts and importance of cost control in food and beverage operations.
  • Overview of the food and beverage profit margin.
  • The relationship between cost control and profitability.
• Session 2: Types of Costs in Food and Beverage Operations
  • Fixed vs. variable costs.
  • Direct vs. indirect costs.
  • Understanding labor costs, food costs, and overheads.
• Activity: Group discussion: Identifying the cost categories for a restaurant or hotel operation.

Day 2: Inventory Management and Stock Control

• Session 1: Effective Inventory Management for Cost Control
  • The role of inventory management in cost control.
  • Key inventory tracking systems: FIFO (First In, First Out) vs. LIFO (Last In, First Out).
  • How to maintain accurate stock levels and avoid overstocking or stockouts.
• Session 2: Controlling Food and Beverage Waste
  • Identifying and minimizing food waste at every stage of the operation.
  • Techniques for reducing portion sizes without compromising quality.
  • Managing spoilage, overproduction, and handling waste effectively.
• Activity: Practical exercise: Conducting an inventory audit and identifying waste reduction opportunities.

Day 3: Menu Engineering for Profitability

• Session 1: Menu Design and Pricing Strategies
  • Understanding menu engineering and its impact on profitability.
  • Techniques for pricing menu items to cover costs and maximize revenue.
  • Creating value through strategic menu design and positioning.
• Session 2: Analyzing Menu Item Performance
  • How to analyze the cost and profitability of individual menu items.
  • Identifying high-profit and low-profit menu items.
  • Adjusting the menu to improve sales and reduce underperforming items.
• Activity: Workshop: Redesigning a sample menu to optimize cost control and profitability.

Day 4: Labor Cost Management and Operational Efficiency

• Session 1: Managing Labor Costs in Food and Beverage Operations
  • Understanding the relationship between labor costs and profitability.
  • Techniques for controlling labor costs while maintaining high service levels.
  • Staffing optimization: Scheduling, overtime, and productivity.
• Session 2: Improving Operational Efficiency to Reduce Costs
  • Streamlining operations to improve cost-effectiveness.
  • Using technology to improve workflow and reduce manual labor.
  • Implementing standard operating procedures (SOPs) for consistency and efficiency.
• Activity: Case study analysis: Identifying labor cost control measures for a high-volume restaurant.

Day 5: Monitoring and Implementing Cost Control Systems

• Session 1: Setting and Tracking Key Performance Indicators (KPIs)
  • Defining KPIs for food and beverage cost control (e.g., food cost percentage, beverage cost percentage, labor cost percentage).
  • Using financial reports to monitor performance and identify areas for improvement.
  • Setting realistic targets for cost control.
• Session 2: Implementing Cost Control Systems
  • Best practices for implementing a cost control system in food and beverage operations.
  • Creating an action plan for long-term cost control and financial sustainability.
  • The role of management and staff in maintaining cost control practices.
• Activity: Final project: Creating a comprehensive cost control plan for a food and beverage operation, including inventory management, menu engineering, labor cost control, and waste reduction.