Assignment 2: Food and Beverage Costings
This assignment requires you to create and write a menu for a full course dinner and cost out the recipes for one food and one beverage menu item of your choosing. Each recipe should be developed with the understanding that it is a menu item that would be served in a clubhouse or resort in a casual dining atmosphere.
Each menu item requires a selling price. You have learned that the selling price is set based on a predetermined cost percentage target (theoretical cost percentage), which is equal to the ingredient costs included in the menu item (e.g. 33% cost percentage target means total ingredient cost is 33% of selling price).
Management sets the cost percentage target for each menu category (e.g. food, liquor, bottle beer, draft beer, wine, confection, etc.). Although the cost percentage target for a category may be set (e.g. 33%), not all individual menu items in that category will be costed at the same percentage. Prices are set (some higher, some lower) at what the market will bear, what the competition is running their costs at, and what the manufacturer recommends.
For this reason, menu costing sheets are created for each item when menus are written or updated. It is recommended that both the theoretical and desired cost percentages be factored in on this sheet. This will aid food and beverage operators when they analyze the actual product costs and review the sales mix, which is typically completed at the end of a period and/or year-end.
When costing, yield tests may also be calculated (if applicable), which represents the true cost of usable product. Calculating yields is important because it will better position food and beverage operations to be more efficient and profitable. If this calculation is neglected, actual product costs will be incorrect; a harder to detect higher product cost percentage will be the result.
This assignment provides you with an opportunity to demonstrate the achievement of the following course learning outcomes:
Demonstrate financial expertise related to inventory control, revenue and expenses related to hospitality management of a golf club/resort.
