1

Spur Management Foodcost Exam:

Answer Sheet

Compiled July 03. BF

Attached:Annex. A: National Foodcost average % statistics – for referral

Test total = 55

Reference:

Note: This exam is compiled from the Spur Management & Operations Manual published in 1/11/2001

Note:

  • Please answer in point form.
  • Ensure that your writing is legible.
  • Spelling is not an issue
  • Abbreviations are not accepted

Note to marker:

If an answer is correct, but the answer does not appear on the answer sheet, allocate a mark.

Please give 1 mark per fact, as per the answer sheet. Often people will use synonyms for the same fact that was stated previously & expect a mark. E.g.

Q: Lists factors that would affect the food cost: (2)

A.1.) TheftA.2) Pilferage

The above answers indicate the same principle & would receive 1 mark

1)What does the term FOOD COST indicate (mean)? (1)
Answers: Ops manual – Foodcost section – pg. 3

i)The cost of sales in relation to the turnover (1), or

ii)The cost of the food & beverages in relation to the turnover (1), or

iii)The % that food costs, in relation to turnover (1)

All the above answers are correct, however- they should ALSO reflect “ …for a specific period of time”

Note marker: any 1 of the above answers may be accepted___/1

2)What is the basic FORMULA used to calculate: usage? (1)

i)Opening stock + purchases – closing stock = Total usages (1), or

ii)Opening stock + purchases= Total – closing stock = Total usages (1)

Note marker: any 1 of the above formulas may be accepted___/1

3)What is the basic FORMULA used to calculate the FOODCOST % (percentage)? (1)

i)Usages  Net Turnover x 100 = Foodcost % (1) ___/1

4)Where would you locate the Opening stock Rand Values? (1)

i)Previous periods closing stock values (1) ___/1

5)Why would you use the net value of the purchases to calculate the food cost, versus the gross value? (1)

i)Gross value includes vat, therefore it is not the true value of the purchases (1)

ii)It would increase the food cost % & the food cost would be incorrect (1)

iii)The vat amounts on purchases is claimed from SARS & is not to be included in the calculation (1)

Note marker: any 1 of the above answers may be accepted___/1

6)List 6 factors/practices that contribute to controlling the food cost (6)

i)Good ordering practices/Purchasing practices (1)

ii)Receiving practices/ prices paid correct (1)

iii)Stock rotation/ Reduces waste (1)

iv)Effective procedures (1) Opening & closing procedures, 11h00 /17h00 prep checks

v)Maintain high turnovers (1) by ensuring that effective merchandizing is practiced by the waitron body to improve sales mix (1)

vi)Utilizing standard recipes / Complying to Spur product & presentation Manual (1)

vii)Ensure pilfering / theft is impossible due to management practicing correct procedures & monitoring customer service (1)

viii)Ensure quality & yield of all products is acceptable & correct (1)

ix)Ensure staff meals are controlled (1)

Note marker: Any 6 correct answers from the above list may be accepted___/6

Total this Page = _____/11

7)List 5 benefits of carrying out a weekly food cost. (5)

i)Problematic areas – recognized – controlled before it effects the end of month income statement (1)

ii)Forecasting & budgeting of purchases in following weeks (1)

iii)Management more aware & accountable (1) Note: Ray say’s not true – in Ops manual?

iv)Assists in identifying trends (problem areas) – shrinkage & pilfering (1)

v)Supplies benchmark – national guidelines – ‘as to how your month is progressing’ (wording as per manual) (1) cont…

vi)Good discipline – assist in operating a well organized store – there are no shortages of products on a day to day basis (1)

Note marker: any 5 of the above from the above list may be accepted___/5

8)Which is the greatest VARIABLE OVERHEAD in the business? (1)

i)The Food Cost (1)___/1

9)If your Gross Turnover is R430,600.00, what is your net turnover? (2)

i)R37 7719.29 (2)

Note marker: The VAT value is R52 880.71___/2

10)Why should any income (money) derived from VAT be kept ‘aside’ & not used to pay for, deliveries?(1)

i)To ensure that the money is available to pay the VAT to SARS when it is due (1) ___/1

11)Calculate the vat & net turnover figures and then calculate weekly food cost % for the following foodcost categories, fill in the values in the relevant spaces on this sheet*: (17)

GROSS TURNOVER / R72 352.60
LESS VAT /
R8 885.40 *(1)
NETT TURNOVER /
R63 467.20*(1)
Date / Dairy / Groceries / Meat
Monday
/ R68.75
Tuesday / R70.00 / R559.00 / R31 23.00
Wednesday / R66.25
Thursday / R45.00
Friday / R68.75 / R340.34
Saturday / R68.74
Sunday
TOTAL PURCHASES
/ R387.49 / R899.34 / R3 123.00
OPENING STOCK / R54.93 / R599.00 / R4 426.28
TOTAL / R442.42 *(1) / R1498,34 *(1) / R7 549.28 *(1)
CLOSING STOCK / R29.89 / R235.00 / R1 203 .09
USAGES / R412.53 *(1) / R1263.34 *(1) / R6 346.19 *(1)
% FOODCOST / .65% (.649%) *(3) / 2% (1.99%) *(3) / 10% (9.99%) *(3)

Note marker: only the correct highlighted values receive the stipulated mark allocation___/17

Total this Page = ______/ 26

12)Comparing your above calculated foodcost % that you calculated, to the attached Nationalfoodcost breakdown%(annexure A), which category would be deemed a problem area? (1). State why that category would be considered a problem area (1) = (2)

i)Problem: Meat category (1),

ii)Why: as the calculated meat food cost is 1.32% higher than the national average - i.e. 9.99% vs. 8.67% (1) ___/2

13)List 10 procedures you would follow to ensure you: Decrease the RIBS food cost percentage/ Solve the problem/ Discover the cause of the loss? (10)

i)Portion ribs (1)

ii)Do not leave ribs outside the fridge or under the grill – results in product going off / bacteria growth(1)

iii)If ribs are cooked in store ensure yields are calculated correctly (1)

iv)When portioning ribs use smaller pieces as kiddies ribs (1)

v)Use off cuts for rib skewer combo meals (1).

vi)Order precooked, pre-marinated, portioned ribs, as you will have a 100% yield (1) .

vii)Ensure butcher supplies the correct grams for each portion. Return all under/overweight products (1)

viii)Check refrigeration is at the correct temperature (2 to 5 Celsius) (1)

ix)Check that acceptable stock rotation is practiced. (1)

x)All product is to de dated on delivery (1)

xi)Liaise with fellow Spur managers to ascertain current price trends (1)

xii)Ensure all storage areas are locked at all times (1)

xiii)Ensure all orders are processed through the point of sales (1)

xiv)Institute a ‘returns book’ to check how many meals are being returned by the guests every shift – calculate the Rand value there of. (1)

Note marker: If you receive an answer –‘theft’, the manager is to explain how theft would be prevented before a mark is allocated.

Any 10 of the above answers may be accepted.___/10

14)Please calculate the following stock turn ratio for meat (3)

i)Closing stock =R1 800.00.

(1)Period =30 days

(2)Usage = R5 200.00

(3)Therefore the stock will sit in the fridge for__10.4__ days before it is replaced with new stock (3) ___/3

15)List 4 scenarios that can be established or questioned with regards to the amount of stock stored or purchased - if stock turn ratios are calculated periodically (4)

i)Is the shop overstocked/ under stocked (1)

ii)Is meat being matured long for enough or are we buying matured meat (1)

iii)The amount of stock purchased can be reduced or increased (1)

iv)Is it worthwhile to order bulk stock (in order to save money) or is it better to have money in bank, earning interest (1)

v)Can the cash flow be improved by reducing stock levels (1)

vi)Is our produce as fresh as it can be (1)

Note marker: any 4 of the above from the above list may be accepted___/4

Total this page = _____/ 19

Page 1=11

Page 2=25

Page 3=19Overall Test=55

ANNEXURE “A”

FOODCOST BREAKDOWN NATIONAL AVERAGE
BREAKDOWN MONTH ENDING XXXX
CATEGORY / NATIONAL FOOD COST AVERAGE
BUTTER AND CHEESE / 1.22
BEVERAGES / 2.85
BREAD AND ROLLS / 0.96
CHICKEN AND EGGS / 2.88
CHIPS / 2.48
DAIRY / 0.65
FISH / 0.83
GROCERIES / 2.09
JUICES AND SAUCES / 2.55
LIQUOR / 4.40
MEAT / 8.67
MIX / 0.81
MUSHROOMS / 0.64
NUTS AND SWEETS / 0.41
OIL / 1.14
COFFEE AND TEA / 0.30
FRUIT AND VEG / 2.53
PRE SAUCES / 1.02
DESSERTS / 0.40
RIBS / 3.90
40.73