Catering Management: How The Information Contributes To Purchasing (Essay Sample)

Name
Course
Catering Management
1 Production sheet and operational controls in the kitchen and how the information contributes to purchasing.
The production process requires a clear and precise plan on how the process should be carried out to reap maximum returns. The production process contributes significantly to operational controls since it gives a guideline on how every procedure will be performed. The kitchen is considered just as any other form of investment where a lot of planning is required. Every procedure is marked with some financial implications (Scanlon 34). The production sheet gives a schedule indicating on how every minute should be spent which eliminates time wastage and improves process flow. Also, it reduces the inventory costs by maintaining safety stocks at the minimum and other excessive work-in-progress inventories. It also ensures that every equipment is used optimally thus increasing capacity. The overall outcome is that everything is done within the time stipulated in the production sheet. Since the materials used in the kitchen are highly perishable, the timely delivery of services ensures nothing is thrown away due to spoilage.
The information provided on the production sheet inspires purchasing to a large extent. When purchasing, market expectations should be considered. An example is what people expect out of that kitchen that should be taken into account. By so doing, it will be easier to identify what to purchase in the order of priority. Only the necessary materials and equipment should be purchased leading to what is termed as inventory control (Scanlon 38). This is very crucial part in purchasing because money may be used to purchase other things which are not necessary. Purchasing unnecessary things may increase expenditure. Moreover, if inventory is not controlled, materials might be bought at the wrong time causing delays or in other occasions end up spoiling. This ensures that all equipment and other essential resources are made available on time and in good condition. The production sheet provides that every penny is invested wisely, with the aim of getting maximum benefits out of it.
2 What is the break-even cost: Variable cost $245,650 and Fixed costs $365,823 and must generate ………. in sales to make 10% profit.
Variable costs $245,650
Fixed costs $365,823
Profit = 10 % (0.1)
Sales=?
At B.E.P, total revenue= total cost (fixed cost+ variable cost)
Total cost= total revenue= (245,650+ 365,823) = 611,473
Contribution= total revenue- variable cost (611,473- 245,650) = 365,823
Also contribution = sales- variable cost
Thus sales = contribution+ variable cost (365,823+ 245,650) = 611,473
At the breakeven point total sales should be equal to the total revenue= 611,473 sales. This is because no profit is realized at the breakeven point.
10% of 611,473= 61,147.3
For the 10% profit to be realized total sales should be equal to (611,473+ 61,147.3) = 672,620.3
3 Options of package prices to customers, how are hourly beverage packages priced and what guidelines are used to determine prices?
In venues beverages items are organized into packages to ease usage and manage on pricing. Caterers need to come up with appealing packages that will make the event enjoyable for both the beverage providers as well as their customers. These beverage packages can be added to bookings to populate beverage items on banquet or track orders. Customers have to be given options to choose from a variety. The variety may include the choice of hourly basis, per person, flat rate or total beverage items. For the hourly basis packages, all drinks to be offered are selected and made available to customers, and they will be charged on an hourly basis (Scanlon 62). Per person option ensures that every individual present at the event will be charged the amount they consume. The flat rate option dictates that a flat rate should be chosen and a sales price determined for the event. Finally, the total beverage items require that the providers determine the total amount of beverage to be provided in an event and a total price calculated.
When determining the prices for the packages, it is important for a provider to use guidelines that will satisfy both sides. The prices should be reasonable that the beverage providers earn some profit out of it and at the same time the event owners do not feel exploited. The number of people attending the event should be given priority when planning the packages. The higher the number, the higher the sales thus prices should be lower due to economies of scale. The type of people attending the event should also be given equal consideration because different people require various services. According to Scanlon (65), dignitaries may attract extra charges since their services must be exclusive, and as such their packages must be designed in a special way. In the case of dignitaries, they may prefer an open beverage package where payments are made after the consumption. This means that payments are made after drinking while at the event based on the total amount consumed. However, it is advisable for event owners to employ cash beverage packages becau...