The operators in the food industry can improve on the profitability with efficient purchasing. The sign of effective and efficient purchasing by the food service industry can be measured by the turnover rate of inventory (Sanders et al. 2008). The relevant equations for measuring effective purchasing are as follows
average value of inventory=opening value of inventory+closing value ofinventory2
turnover=cost of the goods soldaverage value of inventory
For efficient control in the cost of in the food service industry, the storage facilities must be in good condition; the foods must be well arranged and properly located. For example, the location of storage facilities of perishable goods must be between the receiving and preparation areas. The security of the storage areas must be high (Ojugo, 2010). For the process of issuing, there should be good keeping of records in the store. The food service industry should have a computerized procedure that is used in the requisition pricing.
The cost control in food service industry production should be monitored by involving the employees in to ensure that all the work schedules should be completed in time, and they should be able to be flexible to any change in the case of emergency (Pavesic & Magnant, 2005). The employees should be aware that the improvement and cost control in the production process requires teamwork. The four steps that should be used in the cash register to control cost in the food service industry include; item management, filling the stock, selling and reporting. The object is managed by accessing the Manage menu item and inputting it before it can be sold (Lewis & Brown, 2003). After the selling of the product, the cash register should be able to produce a report of the item that is sold.
Sources
Sanders, E. E., Hill, T. H., Faria, D. J., & Sanders, E. E. (2008). Understanding foodservice cost control: An operational text for food, beverage, and labor costs. Upper Saddle River, NJ: Pearson/Prentice Hall.
Ojugo, C. (2010). Practical food & beverage cost control. Clifton Park, NY: Delmar, Cengage Learning.
Pavesic, D. V., & Magnant, P. F. (2005). Fundamental principles of restaurant cost control. Upper Saddle River: Pearson Prentice Hall.
Lewis, C., & Brown, D. R. (2003). Controlling restaurant & food service operating costs. Ocala, Fla: Atlantic Pub. Group.
