THE PURCHASING IN FOOD SERVICE MANAGEMENT

hii.. evening uollss..
so today, as usual, i wanna share with about what i've learned in Catering System subject.
and for today, we gonna go through chapter 6, which is PURCHASING, okay ?

EH ! before i forgot, today is 14th February isn't it ?
 i nak advice yang couple2 tu, TOKSAH lah celebrate VALENTINE DAY..
 and I bet all of u are Muslim kan ?

haaaa.. meh sini i nak sental2 sikit uols punya pemahaman bout' this valentine day.

Celebrating Valentine's Day means resembling or imitating the pagan Romans, then the Christian imitation of the Romans in something that was not part of their religion.

Because Valentine's Day goes back to Roman times, not Islamic times, this means that it is something which belongs exclusively to the Christians, not to Islam, and the Muslims have no share and no part in it. 
The most important thing that you ( muslim ) need to know is, the Prophet Nabi Muhammad said: "Whoever imitates a people is one of them." 

So, whoever yang follow the Cristian and celebrate the Valentine Day, theyolls tu lebih kurang je macam mereka tau.. astaghfirullahalazimm.. 

Renung2 kan dan selamat beramal ye ? ihiks :)

Eh eh ehhh.. dah macam kelas CTU plak u kata ya ?? hahaha

ok ok lets go to our Purchasing topic pulak ye .....

What is Purchasing ?

In easy language, purchasing is when you acquire ( something ) by paying for it, same goes to buy.

It is the process of getting the right goods, at right time, for the right quantity, quality and also at the reasonable price that meets the established standards.

This is the example for Purchasing Activities Flow.

The Market

- It is means a place where buyer and seller meets together in order to carry on transactions of goods and services.

- There are 5 types of market :

1. Marketing channel - a set of practices or activities necessary to transfer the ownership of goods, from the point of production to the point of consumption. It is the way products and services get to the end-user, the consumer; also known as a distribution channel.
2. Primary market - the basic source of food supply including growing regions and processing plants
3. Secondary market - the physical, functional unit of the marketing system, which the products are accepted from the primary markets and distributed to the buyer.
4. Local market - Clients and customers who will buy a product in the region or area in which it is produced include customers located within the region the product or service is produced or made available.
5. Broker - wholesaler who does not assume ownership of the goods, bring the buyer and seller together.

- Market have their own regulation by U.S. Food and Inspection Program.

• Interstate Commerce
• any commercial transactions or traffic that cross state boundaries or that involve more than one state. 
• for an instance, a company in Negeri Sembilan buys something from a company in Pahang.
• Intrastate Commerce
• The act of purchasers and sellers transacting business while keeping all transactions in a single state.
  
• for an example, a company in Kuala Lumpur buys something from a company in Kuala Lumpur  also.

U.S. Department of Agriculture (USDA)

- USDA's Food Safety and Inspection Service is responsible for ensuring that the nation's supply of       meat, poultry, and egg products is safe and properly labeled.

Stamps of inspection by USDA

Food and Drug Administration (FDA)

- FDA is responsible for protecting the public health by assuring the safety, efficacy and security of       human and veterinary drugs, biological products, medical devices, our nation's food supply,                 cosmetics, and products that emit radiation. 

• Misbranded
• Standards of identity ( the originality of the food )
• Standards of quality ( grades of the product )
• Standards of fill ( quantity )

FDA's food pyramid

National Marine and Fisheries Service

- Agency of the Department of Commerce that controls a voluntary inspection system for fish, fish 

  products, and grade standards.

U.S. Public Health Department

- Concerned with the control of inspections and contagious disease, and also for the safety of some 

  foods.

Environmental Protection Agency

- Conserving water and energy, minimizing greenhouse gases, re-using solid waste, and getting a         handle on pesticide risks.

Department of The Treasury

- The Bureau of Alcohol, Tobacco and Firearms is responsible for monitoring the production,               distribution, and labeling of alcoholic beverages.

The buyer

• The art of negotiation
• Negotiation is  the process between two or more parties (each with its own aims, needs, and viewpoints) seeking to discover a common ground and reach an agreement to settle a matter of mutual concern or resolve a conflict.
• Ethics in purchasing
• Evaluated the goods objectively, and buying decision made on the quality, price and service.

- There are 2 types if purchasing :

• Centralized purchasing 
• Purchase of materials by a single purchase department. 
• This department is headed and managed by a purchasing manager.
• Under centralized purchasing, all purchases made by the purchase department to avoid duplication, overlapping and the non-uniform procurement.
• Cooperative purchasing 
• A purchasing cooperative is a type of cooperative arrangement, often among businesses, to agree to aggregate demand to get lower prices from selected suppliers.
• Retailers' cooperatives are a form of purchasing cooperative.
• It is often used by government agencies to reduce costs of procurement.

Process between Centralized and Cooperative Purchasing

--

The Vendor

- Vendor is a  person or company offering something for sale, especially a trader in the street.

- We need to choose the right vendor in purchasing the goods.

- Evaluate each of the products to ensure they meet the established specifications.

Method of Purchasing

• Informal / Open-market buying
• Purchase of goods, usually in smaller quantities or in an emergency, without contract or negotiations.
• Formal competitive bid buying
• Written specifications and estimated quantities needed are submitted to vendors with an invitation for them to quote prices.

Competitive bidding variations

• Cost-Plus purchasing
• buyer agrees to buy certain items from a purveyor for an agreed-on period of time based on a fixed mark-up.
• Prime vending
• involves a formal agreement with a single vendor to supply the majority of product needs.
• Blanket purchase agreement
• purchased variety of items from local suppliers, but the exact items, quantity and delivery requirement are not known.
• Just-in-time purchasing
• purchased goods in the exact quantities required for a specific production run and delivered just-in-time.

Factors to consider when purchasing

1. Market forms of food
2. Food quality
3. Quality standards
4. Grades
5. Grading and acceptance services
6. Brands

Purchasing Procedures

• Identify
• Requisition
• Inventory stock level
• minimum and maximum stock level must be established
• Quantity to buy
• depends on money, storage space, method of buying, and frequency of deliveries.
• Specifications
• detailed description of a product and should always include :
• Name of the product
• Federal grade 
• Unit on which price was quoted
• Name and size of container
• Count per container
• Issuing bid request
• Provides vendors with opportunity to submit bids for specific items needed
• Developing purchase orders
• Requisition
• Specifies the quantity of each item needed for the bid period, quality and specifications.
• Tabulating and evaluating bids
• Awarding contracts
• general condition include services to be rendered, dates, methods of deliveries, inspection request and many more.

Purchasing procedures

Law and contract management

• Uniform Commercial Code
• Law of Agency
• Law of warranty
• Law of Contract

Law of competition and pricing

• Sherman Antitrust Act
• Federal Trade Commission Act
• Clayton Act
• Robinson Patman Act

Siap lah sudahhhh T_T

Thats all for this topic.

Chapter 5 : THE MENU

Hiiiiii hellloo annyeonghaseyoo mushi-mushii, and Assalamualikummm...

So today, i wanna share with uolls about what i have been taught on Chapter 5 ; THE MENU by my handsome lecturer, Sir Azwan.


INTRODUCTION

All of you have been to a restaurant, isn't it ? So, I bet you know what the Menu is.
Menu is the most important tool if you wanna start a food service operation. If you don't have the menu, then when people get into your restaurant, they will make this face to you. HAHA

Plus, a well-planned menu serves as catalyst that drives all operational functions from Purchasing, Production, Assembly, Distribution, Service and Sanitation.


Menu Planning

There are 3 factors of influence in making the menu ;

• Organizational

          - to plan a menu, it is need to be reflect to the organization's mission and goals.

• The customer
• Demographics - We need to know the trends of a population based on factors such as age, race, sex, economic status, level of education, income level and employment to plan the menu.
• Sociocultural influences - The factors that greatly impact the menu planning such as marital status, lifestyle, ethnic background, values, and religion of the customer.
• Eating habit 
1. Nutritional Requirements
2. Recommended Daily Allowance
3. Dietary References Intakes
4. Food consumption, trends, habits, and preferences
• Operational and managerial

Budget Guidelines

- In retail operation, the amount to be budgeted is based on the projected income from the sale of           food.
- The income must generate adequate revenue to cover back the amount to buy raw material, pay          employee salary, operating expenses, and of course we need some PROFIT.

If you don't have the profit, it is mean that you dah bankrappp T_T .
You need to prevent that problem happen to you, so pandai2 lah budget yeeee :D


Production and Service Capabilities

a) Equipment and Physical Facilities

• to complete the menu planned for any given day, the work space and all of the equipment should be available.

The work space and also the equipment are completely PERFECTO ~~

b) Personnel

• Skilled labor must be hired in determining the complexity of the menu.

Haaaa.. did u see that ? Terserlah tak PRO dia ? haha

c) Availability of food

• Make sure source of the raw materials can easily to be obtained and near to the food service operation. (logistic)
• Dynamics of the market can affect what foods are available on the menu.

d) Style of service

• the distance between kitchen and point of service should be near to each other and accessible.
• some food are more suitable to seated service, and so on.

The foods are being serve to the customer properly.
Ala-ala fine dining gitu haa...

e) Extent of selection

• Selective menu : there re more than 2 choices of food in each type of menu such as appetizers, salads, soups, main courses, and desserts.

One of the selective menu example

• Semi-selective menu : have one or more choices of food in at least one menu category.

As you can see, it is only one category of menu ( burger ),
 but still have choices of burger kan ?

• Non-selective menu : offers no choice of food item, single menu only.

For your info, there are five types of food menu in the foodservice operation :

1. Static menu - Same menu items offered every day. These menus usually are laminated for easy cleaning and reuse or printed on wall. The foodservice operation that usually used this type of menu is restaurant.
2. Single-use menu - Planned for service on a particular day and not used in the exact form a second time. Often used in on-site food service such as catered event and holiday.
3. Cycle menu - Different items each day on a weekly, bi-weekly, or some other basis, after which the cycle is repeated. Usually used in healthcare institution and schools.
4. Table d'hote / Prix-fixe menu - Items grouped together & sold for one price.
5. Du jour menu - These menus change daily and are focused on seasonal ingredients, preparing the freshest food possible.
   

What is menu Pattern ???

What i understand about the menu pattern is when you follow that same Menu Plan-most of the times the Menu Pattern is regarding a one day Menu Plan. For example, lets say you eat cereal in the morning, a sandwich in the afternoon, and a steak for dinner. A pretty boring Menu plan, but if you eat this everyday; that is what you call a menu Pattern.



Food Characteristics and the Combination

When we talk about food, it must be perfect isn't it ? I mean, who wanna eat the food we don't even like kan ? Senang cerita, makanan yang tekak kita tak boleh nak terima. kalau makan sampai muntah2 haa. "blarrghh" kata Sir Anizan :P

So, we need to consider the characteristics when preparing a food such as :

• Presentation
• Color of the food
• The texture should be al-dante
• consistency must be right
• Shape and size of the food
• Flavor combination yang awesome

haaaaa.. look interesting kan ? Ni pon dah boleh buat kita laparr T_T
That is why the food characteristics are very important yaaa....

Menu Writing

Here are the steps in menu development :

1. Entrees
2. Soups and sandwiches
3. Vegetables and "sides"
4. Desserts
5. Garnishes
6. Breads
7. Breakfast items
8. Beverages

• Checklist for menu evaluation 
• the menu need to be evaluated prior to use, and on an ongoing basis.

Example of food evaluation form

The Printed Menu

• Menu design and format
• the menu must be appeal to the customer, stimulate the sales, influence the guest, and be clean and simple in design and format.
• Descriptive wording
• The spelling should be accurate and no typo ya. Besides, the picture of the food also need to be right. The food that not available must be remove from the menu card.
• Truth-in-menu legislation
• Require the menu accurately describes the foods to be served. If you give the misleading names to the menu, it is ILLEGAL.
• Menu marketing
• The manner of the food being presented  to the potential customer can increase the sales volume.
• Spoken menu
• Communicating the menu choices by read the menu to the customer.

Customer Satisfaction

The most important things when we operate the food service establishment is the customer satisfaction. The satisfaction of the guest will bring them back to our restaurant at another time.

The customers feedback can be done by :

• Surveys and comment cards
• Can be done formally via written surveys and comment cards.
• Frequency rating of popularity index
• Established by formal or informal surveys, where the customer are asked to rate the most menu items that they love to eat.
• Sales data
• Tracked by modern registers can be used to revise an existing menu or plan a new menu.

Some example of menu...

Fuhhhhh.... Done for chapter 5.

Hopefully, I can remember all of the knowledge that have been taught by my lecturer.

Thank you Sir Azwan :)