An overview of how to use the food cost cockpit, which figures to enter and how to understand the results.
Kitchen Food Cost Owners/Head Chef/Sous Chef
The food cost cockpit is opened via the kitchen labor cockpit, ticking the radio button for Food cost:
Summarize all delivery notes and enter total cost of goods purchased (without VAT and rebates) on the matching day in PMI.
1. Regular purchases for short-term consumption (working stock) should only be inserted in the field Daily Food Purchase.
2. A purchase for an event (e.g. banquet) should be on the day of delivery in addtion to an entry in inventory-column on the day of consumption. You do not need to delete this purchase from the inventory column after consumption; PMI will only calculate today and onwards.
3. A seasonal consumption (e.g. Christmas dinners) should be inserted as a daily purchase; it could be inserted as extraordinary inventory in addition, to increase the closing balance. The closing balance is revised as you are consuming this purchase.
4. Insert daily comments for special events.
5. Remember to save your data.
At the bottom of the table there is a calculation for month-to-date and Month-end. The purchase column (1) sums up purchases for the month. The total column (2) shows goods sold for the period (opening balance + purchases – closing balance). Column 3 shows the total food revenue.
The first time you start using the food cost cockpit, enter the closing balance for the previous month to start with an opening balance. Opening Balance can not be entered anywhere, this is only a carry-over from last period’s closing balance. Closing balance must be entered at the end of the month to find the correct food cost.
Even if your property is not taking stock at the end of the month, something still needs to be entered in this column. You can estimate your inventory, use par stock or copy opening stock. If opening and closing stock is the same, it is assumed that all your purchases have been sold.
Ideally you could work with a Par Stock, your ideal inventory that you always have on hand.
Turnover days refers to the number of days you keep your stock in storage. The fewer days the better as this indicate fresh food and you do not have cash locked up in the store room.