SS2 Catering Craft Practices Lesson Note on Factors that Influence Gross Profit

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FACTORS THAT INFLUENCE GROSS PROFIT

Purchasing (Suppliers and Specification)

• Suppliers unable to meet/cope with volume or standard
• Not keeping close to agreed prices or checking market prices
• Poor response to customer’s complaint
• Poor menu planning

Ordering:-

• Incorrect specification, quantity or price
• Stock deteriorating due to shortage of storage space
• Materials lost during delivery this may be due to poor transportation of goods
• Change in source and quantity of supply
• Poor stock rotation
• Poor hygiene due to failure of staff to carryout procedure

FACTORS THAT ASSIST A CONTROL SYSTEM

• Menu remaining family constant e.g., Mr Biggs, Tantalizers, Chicken Republic, Celebrities etc
• Standardized recipes and purchasing specification used
• Menu has a limited number of dishes

Stocktaking is made easier and costing more accurate. In order to carry out a control system, food stocks must be secure, refrigerators and deep freezers should be kept locked, portion control must accurate. A book-keeping system must be developed to monitor daily operation.

EVALUATION

1. Enumerate different methods of PRICING
2. Mention three (3) factors that influence GROSS PROFIT
3. State two factors that assist in control system

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