DRAFT: This module has unpublished changes.

Food Service Module Questions

 

1. Define the following terms:

a. FTE - Full Time Equivalent. One FTE is equal to one employee working 40 hours per week or a full time schedule. An FTE can also be comprised of two or more employees each working schedules that combine to equal 40 hours worked in one week.

 

b. “Danger Zone” - A temperature range between 41°F and 135°F. Pathogenic bacteria grow most rapidly in this temperature range. Food items should spend no more than four hours at these temperatures or be discarded, especially potentially hazardous foods.

 

c. Break Even Point - The point at which revenue equals expenses. At this point there is no financial profit or loss to the company.

 

d. FIFO - First In, First Out. This method of storing and retrieving inventory requires items to be rotated so that the newest items are placed behind or under older items that were received first. This ensures that the older items are used before newer ones which will help to reduce loss from spoilage.

 

e. Marketing Mix - The combined use of four elements: product, place, price, and promotion in creating a marketing program aimed at a particular target audience.

 

f. CQI - Continuous Quality Improvement. An integrative approach to quality management that links knowledge, systems, and processes to improve quality in an organization.

 

g. HACCP - Hazard Analysis and Critical Control Point. A process to control foodborne illness through the safe production of food and inspections of production methods and facilities. Specifically, hazards that may lead to foodborne illnesses are identified, controlled, and corrected as necessary.

 

h. Standard of Identity - USDA and FDA regulations that establish what a food item must contain in order to be called a particular name. This regulation, applying to interstate sales, protects consumers by allowing them to know what it is in the product they are purchasing.

 

i. Benchmarking - A management tool that compares processes, services, and current success of an organization both internally among its different departments and externally against organizations offering similar services. Allows for management to assess how competitive their organization is to others.

 

j. Social Marketing - The practice of marketing goods and/or services to consumers in a way that will promote positive social changes. A problem must be identified and goals set to determine how the problem will be corrected.

 

k. Micromanagement - The practice of managers involving themselves in the work of their subordinates to an extent which precludes them from completing their actual duties of managing their team and other aspects of the organization.

 

l. IBR Approach - Interest-Based, Relational Approach. A conflict resolution strategy that acknowledges each party’s interests and concerns and seeks to solve the problem through constructive, joint efforts. Outcomes must be objective and agreed upon by all interested parties.

 

 

2. Discuss the importance of the menu in food service operations. Consider the relationship between the menu and:

a)

the purchasing process: The menu will determine which type of market(s) and other food sources food will be purchased from. Limitations on food sources will result in necessary changes to the menu.

b)

the staff required: A menu with extensive preparation and/or assembly of items will require an increased skilled labor force. Menus requiring little preparation or assembly allow for a smaller staff. The number of meals served per day also dictates how many employees are needed to complete each service.

c)

the equipment required: The type of recipes, the amount of preparation needed, and the quantity and frequency of food to be prepared will determine the type and size of equipment that is needed to produce the menu items.

d)

the budget (cash flow and expenses): The quality of ingredients needed for recipes and the amount of skilled labor needed to prepare them will affect both food and labor costs. Food and labor costs need to be factored in when determining the selling price of menu items.

e)

Marketing: The menu should reflect who the target market is and what they want by offering items that are appropriate and appealing. Consideration should also be given to the perceived value this market places on product quality and service to determine which aspects of the menu should be highlighted in its marketing.

 

3. Discuss how the availability of food relates to menu planning. Why is it important to use seasonal products?

Foods in season are more likely to be less expensive and of higher quality than out of season products. As the seasons, and the foods available with them, change it would be advantageous to adjust the menu accordingly to control food costs and quality. It may also be necessary to adjust menu items when shortages, whether natural such as inclement weather or man-made factors, cause a rise in food costs.

 

 

4. Describe at least 3 ways in which an institutional food service (hospital, prison, school, etc.) is different from a restaurant kitchen food service.

1. The main difference between an institutional food service and a restaurant kitchen food service is the type of customer served. An institutional food service serves customers that have little to no choice to eat their food while a restaurant serves customers who willingly purchase their product.

2. Menus at institutional facilities where customers will be eating off the same menu day to day need to be in the cycle format to decrease the monotony of choices. A restaurant should also change their menu but the driving factor is usually seasonal products and changes are made less frequently.

3. The type of equipment required in an institutional setting needs to be appropriate to meet the demand of larger batch sizes due to the number of customers being served usually during a short time period. Restaurants usually require smaller cooking equipment capable of handling a lower number of customers that may be spread out over a longer period of time.

  

 

5. Describe at least 3 ways in which they are the same.

1. Both types of establishments have to put forth an effort in marketing. Both institutional facilities and restaurants market items that that are relatively easy and inexpensive to prepare in order to control food and labor costs. They also both promote special menu items, especially around holidays, to maintain customer satisfaction.

2. Controlling expenses and maximizing revenue is a commonality between both institutional and restaurant food services. Fixed costs, such as rent, and variable costs, such as food, labor, and utilities, are monitored and kept as low as possible without sacrificing the quality of food served.

3. Every food service must ensure that the safety of their food is maintained. Ordering, receiving, storage, preparation, service and holding of food must be conducted with food safety as the highest priority.

 

 

6. Food Order Preparation

A. Based on the information below, what can you surmise about food usage at this facility?
The inventory chart below indicates that most of the food items are almost completely used by the time inventory is taken. This means that the facility is well below their par stock level before inventory is taken and it is past the point at which food items should have been reordered.

B. Should the par stock levels be adjusted?  Why or why not?

Par stock levels should be raised to a higher level. The current levels allow for at least one item to become completely depleted and several others to fall close to zero.

C. What would be on the weekly food order submitted for this facility?

The weekly food order for this facility would include: 6 rice (5lb bags), 4 canned potatoes (#10 cans), 4 applesauce (#10), 4 pork and beans (#303 cans), 1 rye bread (loaf), 9 wheat bread (loaves), 7 eggs (dozen), 2 vegetable oil (liters), 5 hot dogs (1 lb packs), and 8 chicken quarters (5 lb pkg).

 

Item

Par Stock Level

Weekly Inventory

rice (5 lb bags)

10

4

canned potatoes (#10 cans)

6

2

applesauce (#10 cans)

5

1

pork and beans (# 303 cans)

10

6

rye bread (loaves)

4

3

wheat bread (loaves)

10

1

eggs (dozen)

8

1

vegetable oil (liters)

2

0

hot dogs (1 lb packs)

10

5

chicken quarters (5 lb pkg)

10

2

 

7. Marketing campaigns often pair the overt (stated) benefit(s) of using their product or service with another desire of the target demographic group.  For example: Using toothpaste brand X will give you shiny white teeth – paired with – having shiny white teeth will make cute people want to socialize with you. 

 

Describe a promotional campaign for a nutrition program that could utilize this marketing strategy.

The Got Milk? campaign used this marketing strategy to promote the consumption of cow’s milk. The campaign stated the benefits of cow’s milk in supporting healthy bones, hair, skin, nails, and teeth as well as a post-workout drink while playing to our country’s desire to be rich and famous through their myriad of celebrity endorsements.

 

 

8. Write an outline of a business plan for your services as a Registered Dietitian, or for a food product that you would like to promote.

Company Description: Adam’s Salsa founded in 2005 has manufactured salsa and guacamole dips which are distributed throughout New England and Upstate New York. Sales have increased over the first eight years to $275,000 in 2013. The dips are produced using recipes developed by the company’s research and development team. Attempts to expand distribution have failed over the past two years due to transportation issues that have been resolved leading to the recent success of product distribution to Upstate New York as of 2014. Plans to expand distribution throughout the mid-Atlantic states have been formulated.

Product/Service: Adam’s Salsa makes four varieties of salsa: Original, Corn, Peach, and Verde each offered in not hot, sort of hot, hot, and very hot. One variety of guacamole is produced which is also offered in not hot, sort of hot, hot, and very hot. Each dip combines fresh ingredients in just the right combination to satisfy the most discerning salsa and guacamole lovers. Ingredients are locally sourced within a 200-mile radius to ensure quality and to control food costs. Manufacturing capacity in our facility has not yet reached the 50% threshold allowing for an increase in production to meet the demands of and expanded distribution area.

Market Analysis: Studies have shown a trend of salsa and guacamole consumption increasing 17% over the past three years in the mid-Atlantic states. Taste preferences for dips in these states have been noted to be comparable to the New England states. We expect to build a similar customer base to the one we have now in the remainder of the Northeast region. Snacking behavior of customers polled at grocery stores we are planning to distribute to closely match those of our current customers indicating a demand for more dip products.

Marketing Plan: In 2014 plans have been established to market our products in grocery stores in the mid-Atlantic states. Three chains: Safeway, Whole Foods, and Pathmark, have been selected. Marketing tactics begin with sampling in stores during peak shopping hours with the distribution of coupons as another incentive to try the product for the first time. Inclusion in store flyers will follow along with advertisements in local newspapers and their respective websites. The final marketing tactic planned for 2014 includes the purchasing of airtime for commercials on local radio stations in the mid-Atlantic states showcasing our line of products.

Financial Plan: A $175,000 investment is required in order to realize a successful expansion into the mid-Atlantic states for Adam’s Salsa. This amount will procure an additional three delivery trucks, a manager for new accounts in the mid-Atlantic states, and marketing costs. As mentioned earlier, capacity is available to meet the increased demands of the expansion meaning additional capital is not required. Sales are expected to increase 140%, to $660,000, over the next three years if expansion takes place in each of the three grocery chains.

Management: Adam’s Salsa has a management team consisting of two managers with extensive experience in entrepreneurial endeavors. Each manager has been successful in creating other food product companies and have in turn sold them to jointly generate the initial capital required to start Adam’s Salsa. A strong candidate who was a partner in both of the manager’s previous companies has been selected to manage the mid-Atlantic accounts.

 

 

9. A foodservice operation uses hamburger patties at an average rate of six cases per day. It takes 3 days after an order is placed to receive the order. Management wants to keep 2 days’ supply on hand.  The reorder point would be how many cases?

2 day supply on hand X 6 cases/day + 3 days for delivery X 6 cases/day = 30 cases

The reorder point is 30 cases.

 

 

10. Foodservice data indicate 31% of the 360 clients served ordered roasted chicken when it was a menu item.  Based on the historical data, approximately how many servings of chicken should be forecasted?

360 clients served X .31 = 111.6 servings = 112 servings

Based on 31% of 360 clients served ordering roasted chicken, 112 servings should be forecasted.

 

 

11. A business pays 3% of its income as rent ($1,500), 65% towards labor and food costs, and $2,800 towards other monthly expenses.

How much profit does this business make per month?

If 3% of the business’s income equals $1,500 then its total income is $50,000. 65% towards labor and food costs equals $32,500 leaving $17,5000. Subtracting $1,500 for rent and $2,800 for other monthly expenses leaves a profit of $13,200.

 

 

12. You are planning the budget for next year.  Labor costs will increase by 12%.  Food costs will increase by 8%.  Operating costs will increase by 2%.

This year, sales totaled $1,000,000.  Labor costs were 40% of income, food cost was 40% of income and operating costs were 20% of income.

What is the projected budget?

This Year

Labor costs = .4 X $1,000,000 = $400,000

Food costs = .4 X $1,000,000 = $400,000

Operating costs = .2 X $1,000,000 = $200,000

Next Year

Labor costs = $400,000 X 1.12 = $448,000

Food costs = $400,000 X 1.08 = $432,000

Operating costs = $200,000 X 1.02 = $204,000

The projected budget for next year is $1,084,000.

DRAFT: This module has unpublished changes.