COST CONTROL MANUAL

AN HRIM 130 REPORT

Submitted to Ms. Lourdes Indias

In partial fulfillment of the requirements in HRIM 130

Submitted By: Jaiane Michelle Raymundo Isabel Mara Delgado Ruejelle Cabral Giesalyn Mona de Ocampo Jeanne Maia Guantero

Contents
ABOUT THE COMPANY About the Company History The Pearoom Vision Mission Statement Company Website Our Menu COST CONTROL TOOLS & MEASURES Restaurant Management System or RMS Standard Recipe Menu Costing Standard Recipe Menu Costing System Food Allo ance Menu !tem Costing "atabase #$amples Forecasting Popularity !nde$ "aily Food Cost Report Portion Control Purchasing and "eli%ery &uidelines Par 'e%els (or "aily Purchased !tems Par 'e%els (or Wee)ly Purchased !tems Recei%ing &uide Storage &uide !ssuing &uide
.

About the Company

Since *++, Sun M T W Th -AM . ,PM F Sat -AM to *PM/ ,PM to *AM The Fort Strip0 1oni(acio &lobal City0 Taguig 2+*3 454.678+ 9 2+*3 HR!M.78+ reser%ations:thepearoom;com ;ThePearoom;com
.

HISTORY !t as in September *++, hen The Pearoom opened its doors at The Fort Strip o( 1oni(acio &lobal City0 as the brainchild o( <P "iliman alumnae !sabel "elgado0

Taguig to a discerning cro d o( epicures; !t included classic Filipino (a%orites along and &ree)0

Maia &uantero0 Mona de Ocampo0 &eor=elle Cabral0 and Mitchie Raymundo; The restaurant>s o((erings ith rather uncommon cuisine such as Caribbean0 Mediterranean0 as a bra%e attempt at a bac). hich resulted in an interesting %ariety o( choices and (la%ors; !t

to.basics dining concept amidst the high.end dining places in the then gro ing district; Fast (or ard almost three and a hal( years0 The Pearoom is no in the orld.class district one o( the most prominent dining spots ith elder guests ha%ing ith

ith a loyal (ollo ing; !n the day0 the restaurant is (illed

a day out or (amilies ha%ing some bonding time; !n the night0 the place trans(orms to a hub (illed young pro(essionals and success(ul businesspeople loo)ing (or a place to un ind;

The Pearoom is open (rom -AM to *PM and (rom ,PM to *AM on Fridays and Saturdays0 and (rom -AM to ,PM on the rest o( the ee);

LOGO CHANGE

Original 'ogo The Pearoom>s original logo as inspired by the o ners>

(a%orite lunch place during college? The Tearoom0 a local restaurant in the College o( Home #conomics;

@e

'ogo

As (or Aanuary *+78 The ne logo0 its third re%ision0 is the (irst step in the

rebranding o( The Pearoom (rom an e%eryday (amily dining place to a dynamic restaurant that caters to a di%erse group o( loyal patrons;

Company Website

Our Menu

Cost Control Tools and Measures

The (ollo ing tools and measures are used by the restaurant to monitor0 determine0 and control the costs o( The Pearoom as a (oodser%ice operation; @ote that this manual is limited to (ood cost controls and does not co%er cost control (or labor and other e$penses necessary in regular operations; Such in(ormation shall be contained in a separate manual;

Restaurant Management System (RMS)

The Pearoom uses a specialiBed Restaurant Management System designed especially (or the establishment0 (rom the room design to the payment options; @ot only does it help the restaurant )eep trac) o( its sales0 it also )eeps a record o( its in%entories and customer pro(iles;

A Screencap o( the RMS used by The Pearoom

The "ining Room 'ayout o( The Pearoom as seen (rom the company>s RMS
.

Standard Recipe Menu Costing

For its operations0 The Pearoom has de%eloped its o n standard %ersion o( menu costing; !t (ollo s the (ollo ing (ormat? Recipe Requirement "u#ntit$ Unit Cost Item Price Per Unit

In re!ients

Tot#% Price

The In re!ients are listed on the side0 and arranged per >part> o( the menu; For instance0 in the menu item Aer)ed Por) chop ith Caribbean rice0 the ingredients (or the %iand hich is the por) chop0 must be listed separate (rom the ingredients (or the Caribbean rice; The restaurant uses this system so that it signi(icantly rises0 it ill be easier (or management to monitor the hether it is coming (rom the main meat ill be %ery use(ul (or cost.

price changes in the (actors o( the menu; !( the cost (or a particular menu item ill be easier to determine itsel(0 or (rom an accompanying sauce or dip; This in(ormation

cutting and ingredient substitutions; !n essence0 it ill be a decision.ma)ing tool;

The Recipe Requirements or >the amount needed (or each ingredient> is di%ided into t o columns? the Cuantity and the <nit; The "u#ntit$ column must contain the numbers alone0 pre(erred in identi(ying units; The Cuantity column is ritten separate (rom the <nit column so that the company may hile the Unit column must indicate the measurement units 2e;g; grams0 )ilograms0 liters0 milliliters0 etc;3; The metric system is

ta)e ad%antage o( #$cels automated computing (unctions; The number must be isolated0 that is0 no characters other than the digits and numerical symbols must be present in the cell here the number is contained0 (or the computation to or); Other ise0 it ill result in an error;

The In re!ients Cost or the >purchase price o( goods> is also di%ided into the columns? the Item Price and the Per Unit measure; The Item Price pertains to the price o( the purchased good0 and the Per Unit lists ho many o( the gi%en units one >pac)> or >bottle> or >bo$> contains; The reason (or the t o columns under the !ngredients Cost is (or easier data entry; Pac)age siBes %ary (rom item to item0 and it is per single unit; 1y simply gi%ing the price at by itsel(;
.

ise to not ha%e to compute (or the price hich an item is bought and the Duantity

ith respect to the indicated unit measurement0 then the so(t are can do the computing

For instance0 i( the Recipe ReDuirement . <nit is in grams0 and the only a%ailable amount on the mar)et is a bag o( 7 )ilogram at Php 7++; Eou it at Php 7++; Then0 you 7+++ grams; ill ill rite 7++ under the >!tem Price> column0 because you purchased rite 7+++ under the >Per <nit> column0 because 7 )ilogram is eDui%alent to

&OO' ALLO(ANCE The Pearoom management ad%ises the addition o( a )*+ &oo! A%%o,#nce to compensate (or sudden and signi(icant rises in the cost o( goods0 and to de(er the una%oidable need to raise prices due to in(lation;

MENU ITEM COSTING 'ATABASE #ach and e%ery menu item a%ailable at The Pearoom must ha%e a costing tab in a Company Con(idential Microso(t #$cel (ile; #ach coded in such a (ood cost; ill ha%e the costing system (ollo ing the a(orementioned (ormat0 completely it a((ects the ay that one only needs to input current mar)et pricing data to see ho

The Menu !tem Costing "atabase shall be regularly re(erred to once e-er$ t.ree mont.s0 or e%ery time there is # si ni/ic#nt incre#se in m#r0et prices; This shall be to obser%e ho and to monitor rapidly the prices are rising0 hether the 7*F Food Allo ance e((ecti%ely shoulders the price increases;

E1AMPLES The (ollo ing are e$amples o( the !ndi%idual Menu !tem Costing0 ta)en (rom the Menu !tem Costing "atabase; The basis ill be t o o( The Pearoom>s bestsellers? the 23#c0 Sp#rro, so A,esome42 and the 25#ni%%#4 C.oco%#te4 Gr#.#m4 Yum $um $um42;

3AC6 SPARRO( SO A(ESOME4 PEA4 This is not your ordinary por) chop and riceG Eour (a%orite por) chop made glorious grilled and topped ith secret spices0 ith (resh pineapple0

and ser%ed Caribbean rice; 1ecause Aac) Sparro is so a esome; Recipe ReDuirement . Cuantity <nit Cost !tem Price Per <nit

!ngredients

Total Price

A#RH#" PORH CHOP Por) Chop Parsely Pineapple Slice 4 7+ 4 Pieces &rams Pieces 8I;65 74**;5I * 7+++ 4 57;84 7;4**;5I

Spring Onion Chili Fla)es Cinnamon @utmeg Allspice Clo%es 1ay lea%es Oli%e Oil Salt 1lac) Pepper

4 8 I *;I *;I *;I * 7I I I

MAR!@A"# 75* &rams *,;I &rams 4*;I &rams 7+6 &rams 56;I &rams -5;I &rams 6;5I &rams 775;I Milliliter 7I &rams *,;I &rams

7+++ I+ 8+ 85 8* *5 7+ *++ 7+++ I+

+;6, 7;55 5;+5;76 I;,-;7+ 7;8I -;-7 +;+*;,I 78,;I4

A#RH#" PORH CHOP

1lac) 1eans Spiced Ham Oil Onion &arlic Tomato &reen Pepper Red Pepper Rice0 uncoo)ed Salt Pepper

*I+ 54 *+ *6;66 88;84 I+ *J8 *J8 *I+ *;I *;I

CARR!1#A@ R!C# 77;5I grams 86 grams 875;I milliliter ,+ grams ,I grams I6 grams 6;58 pieces 5;8* pieces 8grams 7I grams *,;I grams CARR!1#A@ R!C#

*I+ *I+ II++ 7+++ 7+++ 7+++ * * 87I I+

77;5I 7+;66 7;7I *;4+ 8;75 *;-+ *;*4 *;44 *I+;++ *;I+ 7;4*,+;I, 48+;7* 7+5;I8 7*;,+ 7*+;48

R#C!P# COST P#R PORT!O@ COST 7*F FOO" A''OWA@C# TOTA' FOO" COST P#R S#RV!@&

5ANILLA4 CHOCOLATE4 7PEA48 GRAHAM4 YUM YUM YUM4 Seriously guys0 does this delectable dish e%en need a descriptionK "oesn>t >yum yum yumG> say it allK Recipe ReDuirement Cuantity <nit ,6 *++ 7-+ 7I4 grams grams grams milliliter Cost !tem Price Per <nit 64;I *, 7++ 7+;5I ,6 *++ I++ 7I4 Total Price 64;I+ *,;++ 86;++ 7+;5I 74+;*I -;55 7;+I ,;-*

!ngredients Vanilla !nstant Pudding Mi$ &raham Crac)ers Chocolate 1uttons #%aporated Mil)

R#C!P# COST P#R PORT!O@ COST 7*F FOO" A''OWA@C# TOTA' FOO" COST P#R S#RV!@&

Forecasting
One o( the main ays to control the (ood cost is by ma)ing care(ul purchases; A%oiding o%erstoc)ing so ay to do this is to be many o( each dish as not to be prone to spoilages or pil(erage and a%oiding understoc)ing so as not to ha%e to deny orders ill %ery much in(luence the day>s sales0 (ood cost0 and (ood cost percentage; The able to predict =ust ho much o( the ingredients the )itchen ill most li)ely be ordered; As POPULARITY IN'E1 The Pearoom employs the use o( a popularity inde$ to (orecast its sales; We )eep a separate #$cel (ile (or this in(ormation and that (ile can be accessed by the managers and the partners; Here is an e$ample o( a popularity inde$ using the same t o bestseller menu items as prior mentioned; Ta)e note that the total !tems sold o( *04+I includes the other items in the menu 2li)e the appetiBers0 salad0 be%erage0 etc;3 This is =ust a sample on ho most o( their customers; Mont.%$ Popu%#rit$ In!e9 Item Aac) Sparro So A esome VanillaG ChocolateG &rahamG Eum yum yumG. Tot#% Num;er o/ Menu Items So%! : o/ Items So%! ,6I ,6*04+I Popu%#rit$ In!e9 4+;78F 4+;*8F -+;8-F the establishment )no s hich items are bought by ill need by )no ing ho

e in the (oodser%ice industry )no 0 this is called (orecasting;

The (ormula used is as (ollo s? Popu%#rit$ In!e9 < Tot#% : So%! o/ # Speci/ic Menu Item = Tot#% Num;er o/ Menu Items So%! <sing in(ormation (rom the table abo%e0 our establishment can (orecast ho item e much o( a speci(ic menu ill be used?

ill produce based on its popularity and the guests e$pected; The (ollo ing (ormula Mont.%$ &orec#st < : o/ uests e9pecte! 9 item popu%#rit$ in!e9

"uring regular operations0 the guest e$pectancy The resulting data is sho n on the table belo ?

ill also be based on the records; !n this computation0 ith a (ull house 2-+ guests3 (or each day;

the number o( guests e$pected is based on a 8+.day operation

Mont.%$ &orec#st o/ Num;er o/ Items to ;e So%! L o( guests Item e$pected Popularity !nde$ Aac) Sparro So A esome *4++ *4++ 4+;78F 4+;*8F VanillaG ChocolateG &rahamG Eum yum yumG

Predicted L o( item to be sold ,68 ,66

Daily Food Cost Report

The Pearoom )eeps a record o( the '#i%$ &oo! Cost0 o%er a period; Be innin in-entor$ > Purc.#ses p%us tr#nsport#tion? !e%i-er$? #n! ot.er c.#r es@@ Tot#% /oo! #-#i%#;%e /or perio! @@A En!in in-entor$@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ Tot#% /oo! cost Then0 to compute (or the Food Cost Percentage (or a particular day0 the (ormula is simply? '#i%$ &oo! Cost + < '#i%$ S#%es = '#i%$ &oo! Cost hich is di((erent (rom the Standard Recipe Menu Costing; The '#i%$ &oo! Cost Recor! is the cost o( (ood sold and the (ood cost percentage accumulated

Portion Control

The Pearoom is a restaurant that prides itsel( in pro%iding Duality (ood (or its customers; !n line

ith this0 it

is proper that the portionin o/ /oo! ;e st#n!#r!iBe!; @othing is %aguely estimated0 or did by intuition; !n the spirit o( (airness and eDuality0 our restaurant stri%es to gi%e each guest not only the same Duality but also the same Duantity o( (ood e%ery single time; For this0 e ha%e portion contro%; !t is a gi%en that e%ery menu item has a designated portion siBe0 e ser%e is

ho e%er these are usually estimates; While it is true that not e%erything can be measured e$act until the last gram0 there is an acceptable range; We ta)e responsibility in ma)ing sure that the (ood al ays control our costs3; The Pearoom )itchen stations all ha%e a ,ei .in sc#%e0 me#surin spoons0 and %arious ot.er too%s /or me#surement; All o( the )itchen sta(( are reDuired to be in(ormed o( the portion siBes o( e%ery item in the menu; !n an ideal station; Sample listing ta)en (rom one o( the charts in The Pearoom>s Hitchen "!P POTATO W#"&#S 7 tablespoon I pieces0 6*.6- grams orld0 each o( them )no s it by heart; Ho e%er0 e ac)no ledge the probability that some may (orget; For this0 e ha%e a list o( the portion siBes0 laminated and posted in (ront o( e%ery ithin the prescribed range0 ne%er less 2 e do not shortchange our customer3 and ne%er more 2 e

Breakeven Point
&I1E' COSTS P.p )C?DDD /i9e! cost ;re#0!o,nE 7+0+++ electricity billJmo 40+++ ater billJmo 70+++ telephone and internet billJmo

BEP in units 1#P (or Aer)ed Por)chop P7I0+++J28++ M 7*+;483 N -4pcsJmo 1#P (or Chocolate Oclair P7I0+++J2-+ M ,;-*3 N *74pcsJmo

'i-i!e! ;$ FD per !#$

. 8pcsJday -4pcsJ8+ N

*74pcsJ8+ N -pcsJday The company can either sell anything eDui%alent to the total o( -4pcsJmo or 8pcsJday o( the main dish or *74pcsJmo or -pcsJday o( the dessert in order to not ma)e any loss;

BEP in s#%es Aer)ed por)chop -4pcs $ P8++ N P*I0*++Jmo Chocolate Pclair *74pcs $ P-+ N P7507*+Jmo

'i-i!e! ;$ FD i/ per !#$ P*I0*++J8+ N P-4+ P7507*+J8+ N PI57 orth o( =er)ed por) chop orth o( chocolate eclair

Purchasing and Delivery

Purchasing o( meats and (resh produce are done by phone calls during a(ternoons and are deli%ered to the store the (ollo ing day during early mornings; @on.perishable ingredients and other items are ordered only hen needed0 i;e;0 hen the stoc) le%el are belo the minimum par0 and deli%ered the (ollo ing day early in the morning; Supp%iersE Meats . Monterey Meatshop 2<nit 7H Hensington Place0 1oni(acio &lobal City0 Taguig3 All Others . Mar)etG Mar)etG 2Mabini A%enue cor; McHinley Par) ay0 1oni(acio &lobal City0 Taguig3

PAR LE5ELS
MINIMUM PAR Consumption Consumption Per Mont. Per '#$ ,6+ ,6+ ,6+ *4+++ 8*+ 8*+
.

Items Por) Chop Parsley Spring Onion Tomato &reen Pepper Red Pepper

P#c0in 8I;65J* pcs; 74-J)g; 75*J)g; I6J)g 6;58J*pcs 5;87J*pcs

Or!erin Perio! 7 7 7 7 7 7

MinG P#r 8* 8* 8* -++ 7+ 7+

Unit Pcs & & & Pcs Pcs

8* 8* 8* -++ 7+ 7+

Items Por) Chop Parsley Spring Onion Tomato &reen Pepper Red Pepper

Minimum P#r 8* 8* 8* -++ 7+ 7+

MA1IMUM PAR S#/et$ Le#! Time Stoc0 Us# e 8;* 8;* 8;* -+ 7 7 8* 8* 8* -++ 7+ 7+

M#9imum P#r 65;* 65;* 65;* 76-+ *7 *7

Unit pcs g g g pcs pcs

(EE6LY PURCHASING MINIMUM PAR Consumption Consumption Per Mont. Per '#$ 5*+ 7*++ 6++ 6++ 6++ 4-+ 86++ 7*++ 7*++ ,6+ 7*++++ 7*++++ 8II*+ 7*5,6;76++8;*
.

Items Chili Fla)es Cinnamon/ ground @utmeg/ ground Allspice/ ground Clo%es/ ground 1ay lea( Oli%e Oil Salt 1lac) Pepper Pineapple slice Rice0 uncoo)ed 1lac) 1eans Spiced Ham Onion &arlic Vanilla !nstant Pudding Mi$ &raham Crac)ers Chocolate 1uttons #%aporated Mil)

P#c0in *,;I+JI+ g; 4*;I+J8+ g; 7+6J85 g; 56;I+J8* g; -5;I+J*5 g; 6;5IJ7+ g; 775;I+J*++ ml; 7IJ)g; *,;I+JI+ g; **;5IJ4 pcs; 8-J)g; 77;5IJ*I+g 86J*I+g ,+J)g ,IJ)g 64;IJ,6g *,J*++g 7++JI++g 7+;5IJ7I+g

Or!erin Perio! 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

MinG P#r 76*-+ 74+ 74+ 74+ 77* -4+ *-+ *-+ **4 *-+++ *-+++ -*-*,-* 8587 7844 *-++ *I*+ *7I6

Unit g g g g g g ml g g pcs g g g g g g g g g

*4 4+ *+ *+ *+ 76 7*+ 4+ 4+ 8* 4+++ 4+++ 77-4 4*6 I88 7,* 4++ 86+ 8+-

I56+ 7*+++ 7+-++ ,*4+

Items Chili Fla)es Cinnamon/ ground @utmeg/ ground Allspice/ ground Clo%es/ ground 1ay lea( Oli%e Oil Salt 1lac) Pepper Pineapple slice Rice0 uncoo)ed

Minimum P#r 76*-+ 74+ 74+ 74+ 77* -4+ *-+ *-+ **4 *-+++

MA1IMUM PAR S#/et$ Le#! Time Stoc0 Us# e 76;*74 74 74 77;* -4 ****;4 *-++ 76*-+ 74+ 74+ 74+ 77* -4+ *-+ *-+ **4 *-+++

M#9imum P#r 8I*;I-*,4 *,4 *,4 *8I;* 7564 I-I-45+;4 I--++

Unit g g g g g g ml g g pcs g

1lac) 1eans Spiced Ham Onion &arlic Vanilla !nstant Pudding Mi$ &raham Crac)ers Chocolate 1uttons #%aporated Mil)

*-+++ -*-*,-* 8587 7844 *-++ *I*+ *7I6

*-++ -*-;*,-;* 858;7 784;4 *-+ *I* *7I;6

*-+++ -*-*,-* 8587 7844 *-++ *I*+ *7I6

I--++ 754+4;6*6*;* 5-8I;7 *-**;4 I--+ I*,* 4I*5;6

g g g g g g g g

Receiving
Accepted times o( deli%eries are only during Iam.5am0 anything deli%ered outside o( that period ill not hat be accepted by the store; Auditors are in.charge o( inspecting each item that is deli%ered to the store; The eight0 Duantity0 Duality0 and price o( each item must be chec)ed0 recorded and must correspond to is ritten on the Purchase Order (orm; Sealed or Vacuum.pac)ed items are not reDuired to be opened; !( hat ill be done about

e%er the item deli%ered does not correspond to the item ordered0 the discrepancy must be noted and reported to the management immediately; !t ill be up to the manager to decide the item;
)

Storage
Meats and ice are stored inside the are stored inside a al).in (reeBer hile (resh produce and other perishable ingredients ingredients are placed on the bottom shel%es hile al).in re(rigerator; Ra meats are placed in the bottom part o( the (reeBer and the ice on the top shel%es; For the re(rigerator0 li)e ise0 ra are )ept at the bottom shel%es

the coo)ed are placed on the top; @on.perishable items are stored inside the dry storage room; 'iDuids hile solids are )ept on the top shel%es;

The QFirst !n0 First OutR rule is (ollo ed (or the storing and issuing o( (ood items; #ach item must ha%e a label the hich states the name o( the product0 speci(ications0 dates it as deli%ered and hen does it e$pire0 eight andJor amount0 and the unit price; All items going out and in each o( the storage areas must !n%entory must be done at the end o( each month and must be chec) against the

be recorded;

document; The (reeBer0 re(rigerator0 and storeroom should be )ept loc)ed and only t o )eys should be a%ailable0 one (or the storage manager and one (or the manager;

Issuing
1e(ore any item can be ta)en out o( the store roomJre(J(reeBer0 a (orm must be (irst (illed out
)

ith the

signatures o( the reDuester0 recei%er and the storage manager; 'e(to%er (oods must ne%er be put in the storage again/ all le(to%ers should be thro n out properly in the designated trash bins; !tems not ta)en out o( storage (or the day and ill be e$pired the ne$t day should be (orce issued;

Effectivity and Revisions

This Costing Manual is e((ecti%e as o( Aanuary 7*0 *+780 and shall be the costing guide (or The Pearoom (lagship branch at The Fort0 as ell as (or other ne branches that may e$ist; This can only be re%ised by herein the restaurant manager andJor costing o((icial the partners o( The Pearoom0 ''C; Restaurant managers and costing o((icials may not de%iate (rom the system discussed0 the only e$ception being a case is one o( the partners o( The Pearoom0 ''C and is deemed authoriBed by the other partners;