School of Merchandising and Hospitality Management
HOSPITALITY
COST CONTROLS
HMGT 4210.001
Course Syllabus - Fall 2011
Nancy L. Kniatt, M.S.
Office: Chilton 355D Office Hours: 4:00 – 6:00 pm Wednesday
Phone: 940-565-2971 10:00 – 11:00 am Tues/Thur
E-mail: Use Blackboard Instructor E-mail (or by appointment)
CATALOG DESCRIPTION: Study of the food, beverage and labor cost control systems used in the hospitality industry. Emphasis is on the use of control systems for managerial planning, analysis and evaluation. Includes the concept and terminology of costs; departmental income and expense statements; budgets; purchasing, receiving and inventory systems.
PREREQUISITES: HMGT 2280 and HMGT 2480
(Written documentation required)
CLASS MEETINGS: Tuesday/Thursday 2:00 – 3:20 pm – Chemistry #352
INSTRUCTIONAL MATERIALS:
Dopson, L., Hayes, D. & Miller, J. (2011). Food and Beverage Cost Control, 5th ed. Hoboken, NJ: John Wiley & Sons, Inc.
Texas Instruments BAII PLUS Financial Calculator is required
The syllabus, your grades, Fun on the Web! links, study notes, Excel spreadsheet instructions, PowerPoint handouts, and Frequently Used Formulas can be accessed on Blackboard for this course. To access Blackboard, type http://ecampus.unt.edu/webct and then log on with your EUID and password. You can also reach Blackboard from the UNT home page.
INSTRUCTIONAL METHODS: This class uses a combination of lecture and class discussions. In addition, assignments, quizzes, and take-home Excel spreadsheet problems will be required to enhance your application and retention of the material. Internet applications will also be used to enhance student learning.
EXPECTED OUTCOMES:
Upon completion of the course, students will be able to:
A. Apply the basic formula used to determine profit; express both expenses and profit as a percentage of revenue; and compare actual operating results with budgeted operating results.
B. Develop a procedure to record current sales; compute percentage increases or decreases in sales over time; and develop a procedure to estimate future sales.
C. Use sales histories and standardized recipes to determine the amount of food products to buy in anticipation of forecasted sales; purchase, receive, and store food products in a cost-effective manner; and compute the cost of food sold and food cost percentage.
D. Use sales histories in conjunction with standardized drink recipes to develop a beverage purchase order; compute the dollar value of bar transfers both to and from the kitchen; and compute an accurate cost of goods sold percentage for beer, wine, and spirits.
E. Use management techniques to control the costs associated with preparing food and beverages for guests; compute the actual cost of producing a menu item and compare that cost against the cost that should have been achieved; and apply various methods to reduce cost of goods sold percentage.
F. Choose and apply the best menu type to an operation; identify the variables that must be considered before establishing menu prices; and assign menu prices to menu items based on their cost, popularity and ultimate profitability.
G. Identify the factors that affect employee productivity; develop appropriate labor standards and employee schedules for use in foodservice operations; and analyze and evaluate actual labor utilization.
H. Assign Other Expenses in terms of being fixed, variable, or mixed; differentiate controllable from noncontrollable Other Expenses; and compute Other Expense costs both in terms of both cost per guest and percentage of sales.
I. Prepare an Income (Profit and Loss) Statement; analyze sales and expenses using the P&L statement; and evaluate a facility’s profitability using the P&L statement.
J. Analyze a menu for profitability; prepare a cost/volume/profit (break-even) analysis; and establish a budget and monitor performance to the budget.
K. Identify internal and external threats to revenue dollars; create effective countermeasures to combat internal and external theft; and establish and monitor a complete and effective revenue security system.
L. Identify management challenges in a global economy; identify advances in technology and information management; select advance technology products, and monitor developments in cost control technology.
COURSE SCHEDULE (Subject to change):
Date / Topic / ChapterAug / 25 / Course Introduction / --
30 / Managing Revenue and Expense / 1
Sept / 01 / Determining Sales Forecasts / 2
06 / Managing the Cost of Food / 3
08 / Managing the Cost of Food / 3
13 / Managing the Cost of Food / 3
15 / Managing the Cost of Food / 3
20 / Managing the Cost of Beverages / 4
22 / Review for exam / --
27 / Exam #1 / --
29 / Managing the Food and Beverage Production Process / 5
Oct / 04 / Managing the Food and Beverage Production Process / 5
06 / Managing the Food and Beverage Production Process / 5
11 / Managing Food and Beverage Pricing / 6
13 / Managing Food and Beverage Pricing / 6
18 / Managing the Cost of Labor / 7
20 / Managing the Cost of Labor / 7
25 / Controlling Other Expenses / 8
27 / Review for exam / --
Nov / 01 / Exam #2 / --
03 / Analyzing Results Using the Income Statement / 9
08 / Analyzing Results Using the Income Statement / 9
10 / Analyzing Results Using the Income Statement / 9
15 / Planning For Profit / 10
17 / Planning For Profit / 10
22 / Planning For Profit / 10
24 / Thanksgiving Holiday – No Class / --
29 / Maintaining and Improving the Revenue Control System / 11
Dec / 01 / Maintaining and Improving the Revenue Control System / 11
06 / Global Dimensions of Cost Control / 12
08 / Review for Final Exam / --
13 / Final Exam!!! *** 1:30 pm – 3:30 pm !!! *** / --
OUTCOMES ASSESSMENT:
Participation 5%
Assignments 25%
Exam #1 20%
Exam #2 25%
Final Exam 25%
Total 100%
Example of Grade Calculation (Weighted Average):
Assessment / Raw Score / Grade / Weight / Calculation / Weighted AverageParticipation / 70/75 / 93 / 5% / 93*.05 = / 4.65
Assignments/Homework / 400/450 / 89 / 25% / 89*.25 = / 22.25
Exam #1 / 90 / 90 / 20% / 90*.20 = / 18.00
Exam #2 / 88 / 88 / 25% / 88*.25 = / 22.00
Final Exam / 93 / 93 / 25% / 93*.25 = / 23.25
Total / 90.15
*To pass this class, you need to get at least a “C” or better grade. To get a “C”, you need to earn at least 70% of the total grade.
Participation: Participation will be evaluated based on attendance and participation in class discussions. Unexcused absences will result in a loss of participation grade. Students are expected to come to class prepared and will be evaluated on contributions made to class discussions.
Assignments: Assignments will be given daily to help assess your progress. The assignments are expected to be submitted through Blackboard by 10:00 a.m. on the due date. You must also bring a hard copy of your assignment to class the day it is due. Since assignments are due almost daily, class attendance is a must.
Midterm and Final Exams: Both exams will include objective questions. Examples of objective questions include multiple choice, true/false, and problems.
ATTENDANCE AND TARDINESS: Attendance is mandatory and will be assessed in the participation grade. As it is in a professional setting, tardiness is unacceptable.
Revisions: The instructor reserves the right to revise this syllabus and list of requirements when, in her judgment, such revision will benefit the advancement of the course goals and objectives.
ACADEMIC REQUIREMENTS
§ Students majoring in Hospitality Management are required to have a minimum grade point average of at least 2.35 on all courses completed at UNT. First term/semester transfer students must have a transfer grade point average of 2.35.
§ A grade of C or above must be earned in each hospitality and tourism management (HMGT or SMHM) course completed in residence or transferred to UNT.
§ Academic requirements for graduation with a BS in Hospitality Management from the School of Merchandising and Hospitality Management include:
o A minimum GPA of at least 2.35 on all courses completed at UNT.
o A grade of C or above in each hospitality management course completed in residence or transferred to UNT. This includes all courses with prefixes SMHM, HMGT, MDSE, DRTL and HFMD.
o A minimum of 2.35 GPA in all work attempted, including transfer, correspondence, extension and residence work.
For additional information regarding requirements and policies, refer to the 2011-2012 Undergraduate Catalog.
ACADEMIC ADVISING
§ The SMHM Advising Staff recommends that students meet with their Academic Advisor at least one time per long semester (Fall & Spring). It is important to update your degree plan on a regular basis.
§ Departmental Contact Information (Chilton Hall 385):
Assistant Director of Advising (Digital Retailing) Lynne Hale, Ph.D. 940.565.3518
Hospitality (A-M) Ernestine Denmon 940.565.4810
Hospitality (N-Z) David Watkins 940.369.7599
§ Please check prerequisites carefully prior to enrolling in courses. Students MUST complete all prerequisite courses before enrolling in upper division courses.
§ It is imperative that students have paid for all enrolled classes. Please check your online schedule daily through the 12th class day (September 9) to insure you have not been dropped for non-payment. Students unknowingly have been dropped from classes for various reasons such as financial aid, schedule change fees, etc. SMHM will not be able to reinstate students for any reason after the 12th class day regardless of situation. It is the student’s responsibility to ensure all payments have been made.
IMPORTANT Fall 2011 DATES
August 24 Last day for 100 percent refund
August 31 Last day to change schedule other than a drop.
September 5 Labor Day – No Classes
September 8 Twelfth class day
September 9 Beginning this date a student who wishes to drop a course must first receive written consent of the instructor.
September 10 Apogee Stadium Opens for first Home Game - Game time 6:00 pm
September 15 Graduation applications due
October 5 Beginning this date, instructors may drop students with grade of WF for nonattendance.
October 22 Homecoming – Join us for pre-game fun!
October 28 Last day for a student to drop a course with consent of instructor.
November 18 Last day for an instructor to drop a student with a grade of WF for nonattendance.
November 18 Last day to withdraw from the semester (Dropping all UNT courses)
A grade of WF may be assigned if student is not passing.
November 24-27 Classes dismissed for Thanksgiving holiday. University closed.
December 3-9 Pre-finals week
December 9 Reading day. No classes.
December 10-16 Finals week.
December 16 Master’s commencement
December 17 Undergraduate commencement
ACADEMIC ORGANIZATIONAL STRUCTURE
Understanding the academic organizational structure and appropriate Chain of Command is important when resolving class-related or advising issues. When you need problems resolved, you should start with your individual faculty member and/or advisor who will then help you navigate the Chain of Command shown below:
University of North TexasSMHM Academic Chain of Command
Individual Faculty Member/Advisor
Division Chair
Associate Dean, School of Merchandising and Hospitality Management
Dean, School of Merchandising and Hospitality Management
QUALIFIED STUDENTS UNDER THE AMERICANS WITH DISABILITIES ACT OR SECTION 504 OF THE REHABILITATION ACT OF 1973
The School of Merchandising and Hospitality Management cooperates with the Office of Disability Accommodation to make reasonable accommodations for qualified students with disabilities. If you have a disability for which you will require accommodation, please present your written accommodation request by the end of the first week and make an appointment with the instructor to discuss your needs.
COURSE SAFETY STATEMENTS
Students in the School of Merchandising and Hospitality Management are urged to use proper safety procedures and guidelines. While working in laboratory sessions, students are expected and required to identify and use property safety guidelines in all activities requiring lifting, climbing, walking on slippery surfaces, using equipment and tools, handling chemical solutions and hot and cold products. Students should be aware that the University of North Texas is not liable for injuries incurred while students are participating in class activities. All students are encouraged to secure adequate insurance coverage in the event of accidental injury. Students who do not have insurance coverage should consider obtaining Student Health Insurance for this insurance program. Brochures for this insurance are available in the UNT Health and Wellness Center on campus. Students who are injured during class activities may seek medial attention at the UNT Health and Wellness Center at rates that are reduced compared to other medical facilities. If you have an insurance plan other than Student Health Insurance at UNT, please be sure that your plan covers treatment at this facility. If you choose not to go to the UNT Health and Wellness Center, you may be transported to an emergency room at a local hospital. You are responsible for expenses incurred there.
ACADEMIC DISHONESTY
Academic dishonesty includes, but is not limited to, the use of any unauthorized assistance in taking quizzes, tests, or exams; dependence upon the aid of sources beyond those authorized by the instructor, the acquisition of tests or other material belonging to a faculty member, dual submission of a paper or project, resubmission of a paper or project to a different class without express permission from the instructors, or any other act designed to give a student an unfair advantage. Plagiarism includes the paraphrase or direct quotation of published or unpublished works without full and clear acknowledgment of the author/source. Academic dishonesty will bring about disciplinary action which may include expulsion from the university. This is explained in the UNT Student Handbook.
CLASSROOM POLICIES
Student behavior that interferes with an instructor’s ability to conduct a class or other students’ opportunity to learn is unacceptable and disruptive and will not be tolerated in any instructional forum at UNT. Students engaging in unacceptable behavior will be directed to leave the classroom, and the instructor may refer the student to the Center for Student Rights and Responsibilities to consider whether the student’s conduct violated the Code of Student Conduct. The University’s expectations for student conduct apply to all instructional forums, including university and electronic classrooms, labs, discussion groups, field trips, etc. The Code of Student Conduct can be found at http://www.unt.edu/csrr/student_conduct/index.html.