Define the following terms:
FTE (full time equivalent) – is the equivalent of one person working full time.
1 FTE is equal to 40 hours worked per week or 2080 hours worked in one year.
FTE = the number of employees x hours worked per week x 52 weeks per year / 2080 hours in a year.
“Danger Zone” – the temperature range of 41º to 135ºF in which disease-causing bacteria are capable of rapid multiplication
Break Even Point – pricing strategy used to determine the point at which sales volume covers fixed costs and variable costs.
Break even point = fixed costs / (selling price – variable costs)
FIFO (first-in/first-out) – is an inventory method in which stock is rotated to ensure that items in storage are used (or issued) in the order in which they were received.
Marketing Mix – represents the package of approaches that organizations use to attract a target market, including product, place, price, and promotion.
Product refers to the combination of goods and services that satisfy a want or need. Place includes distribution and how products are sold.
Price is the amount of money charged for a product or the sum of the values customers exchange for the benefit of the product.
Promotion involves all communication with the customer.
CQI (Continuous Quality Improvement) – is part of total quality management which emphasizes organization and systems rather than individuals. The ideal is that systems and performance can always improve and uses outcome assessment to evaluate quality.
HACCP (Hazard Analysis and Critical Control Point) – is a systematic and science-based approach to food safety programming and inspection that focuses on the identification and control of hazards that have the potential to cause foodborne illness.
Standard of Identity – defines what a food product must contain to be called a certain name.
Benchmarking – is the total quality management measurement tool that provides an opportunity for a company to set attainable goals based on what other companies are achieving. There are three types of benchmarking: internal, external, and functional/generic. Internal benchmarking compares similar functions within an organization, while external benchmarking compares like properties with other organizations. Additionally, in functional/generic benchmarking, comparisons are made with companies that have different purposes but some of the same functions.
Social Marketing – is a marketing technique to achieve specific behavioral goals. The VERB campaign is an example of social marketing intended to increase physical activity among youth.
Micromanagement – is a management approach in which the manager closely supervises and controls the tasks of his or her employees.
IBR Approach (Interest-Based Relational Approach) – is a conflict resolution theory that focuses on six rules: 1. Show mutual respect for each party involved; 2. Separate the problem from the person; 3. Try to understand the other party’s position and interests; 4. Listen first, talk second; 5. Be objective with facts; 6. Be open to ideas together.
Discuss the importance of the menu in food service operations. Consider the relationship between the menu and:
a) The purchasing process – The menu determines what food items need to be purchased. Popular menu items would have a higher par stock and would be purchased more frequently.
b) The staff required – Skill level of staff is based on types of food served. For example, gourmet menus may require trained chefs, whereas some institutional facilities produce food in bulk using standardized recipes. Labor hours are related to volume of meals produced.
c) The equipment required – The type of equipment required and kitchen layout will differ depending on what the menu offers. Even distribution of ovens, ranges, mixers and other equipment should be taken into consideration.
d) The budget (cash flow and expenses) – The budget is based on the projected income from food sales. The income should cover the cost of raw food, labor, and operating cost.
e) Marketing – Marketing the menu should take into account the design and format, food preferences of targeted audience, and accuracy of description.
Discuss how the availability of food relates to menu planning. Why is it important to use seasonal products?
Frequent menu changes might be required for food service operations that use seasonal products. Knowledge of seasonal availability of produce is important to help determine what can be offered on the menu. Demand for fresh, organic, and locally grown produce would depend on the location of food service operation. Such operations would reduce their carbon footprint by requiring limited transportation. Additionally, flavors are more distinct when using seasonal products.
Describe at least 3 ways in which an institutional food service (hospital, prison, school, etc.) is different from a restaurant kitchen and food service.
1. Restaurant operations assemble individual meals at a centralized-delivery production point and serve hot meals immediately; whereas institutions often use tray assembly for speed and efficiency.
2. Restaurants often target outside clientele; whereas institutions usually serve individuals within the facility or organization.
3. Since institutions prepare the same meals in bulk, size and layout of the kitchen would differ from a restaurant.
Describe at least 3 ways in which they are the same.
1. Both operations must have established food quality and safety standards.
2. Both operations must determine budgetary needs based on expenses and income.
3. Both operations market their menus to attract consumers.
Food Order Preparation
A. Based on the information below, what can you surmise about food usage at this facility?
Weekly inventory suggests food usage is high at this facility. Many food items during inventory are comparably less than the par stock.
B. Should the par stock levels be adjusted? Why or why not?
Upon weekly inventory, many frequently used items were below par stock level. Par stock should be adjusted accordingly. Consider increasing par stock of applesauce, wheat bread, eggs, vegetable oil, and chicken quarters. Consider decreasing par stock of rye bread to reduce food spoilage and waste.
C. What would be on the weekly food order submitted for this facility?
Item | Par Stock Level | Weekly Inventory | Weekly Food Order |
rice (5 lb bags) | 10 | 4 | 6 |
canned potatoes (#10 cans) | 6 | 2 | 4 |
applesauce (#10 cans) | 5 | 1 | 4 |
pork and beans (# 303 cans) | 10 | 6 | 4 |
rye bread (loaves) | 4 | 3 | 1 |
wheat bread (loaves) | 10 | 1 | 9 |
eggs (dozen) | 8 | 1 | 7 |
vegetable oil (liters) | 2 | 0 | 2 |
hot dogs (1 lb packs) | 10 | 5 | 5 |
chicken quarters (5 lb pkg) | 10 | 2 | 8 |
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.
A nutrition program to promote healthy eating habits in teenage girls: Color your plate with antioxidant rich fruits and vegetable for glowing, beautiful skin.
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?
(6 cases x 3 days for delivery) + (6 cases x 2 days on-hand supply) = 30 cases
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?
0.31 x 360 clients = 111.6 = 112 servings
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?
$1,500 / 0.03 = $50,000 total income
$50,000 x 0.65 = 32,000 labor and food costs
$50,000 - $1,500 - $32,000 - $2,800 = $13,200 monthly profit
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?
Labor cost: $1,000,000 x 0.40 = $400,000 x 1.12 = $448,000
Food cost: $ 1,000,000 x 0.40 = $400,000 x 1.08 = $432,000
Operating cost: $1,000,000 x 0.20 = 200,000 x 1.02 = $204,000
$ 448,000 + $432,000 + $204,000 = $1,084,000