Food cost control in local four-star hotels : a critical review

Abstract

The major control points must always be built around the revenue producing areas, and in the hotel industry this concerns first and foremost food. Food cost - i.e. the cost of provisions used in producing the food sold - tends to constitute 30-45% of total operating costs. Thus the importance of effective food cost control needs no emphasis. Basing itself on accepted theory on the subject, this study will review and critically appraise internal and other control systems for proper food cost management in four local four-star hotels situated in different touristic areas across the island. In the process this dissertation tests, reviews and compares the various systems in use for ordering, receiving, storing, issuing and preparation of food in hotel establishments to determine the extent of their efficacy in minimising food costs, preventing fraud and waste, and maximising profit from the sale of food. It also considers the importance of post operational controls - food and beverage reporting, the assessment of results, and corrective action where appropriate - in a system of food cost control. Since a study of food cost control would be incomplete if it did not take into consideration quality control, reference is made to relevant local and foreign regulations such as the Food Hygiene Regulations Act, 1969 and EU Directive 93/43.