UNIVERSITY OF NORTH TEXAS Summer 2015

College of Merchandising, Hospitality & Tourism Classroom: 345

4210.001 Food & Beverage Cost Control

Accounting 3

Course Syllabus

Jeff Britain, MBA

Office: Chilton 355 E

Office Hours: 12 to 1 PM

E-mail: Use Blackboard or or 214-385-0871.

CATALOG DESCRIPTION: Application of financial accounting principles to the hospitality industry: Uniform System of Accounts for restaurants, hotels, and clubs; completion of the accounting cycle for hospitality operations: transactions related to payroll, inventories, receivables, and payables for the hospitality industry.

PREREQUISITES: HMGT 2280 Hospitality Financial Accounting

HMGT 2480 Hospitality Managerial Accounting

Class Meetings:

INSTRUCTIONAL MATERIALS:

Food and Beverage Cost Control—Lea Dopson and David Hayes

Minimum requirement: Texas Instruments BAII Plus financial Calculator

INSTRUCTIONAL METHODS: This class uses a combination of lecture and class discussions. In addition, assignments, quizzes, and take-home Excel spreadsheet problems will be required to enhance the student’s application and retention of the material. Also, Internet and Blackboard study and quiz applications will be used to enhance student learning.

EXPECTED OUTCOMES:

Upon completion of the course, students will be able to:

A.  Apply the basic formula used to determine profit; express both expenses and profit as a percentage of revenue; and compare actual operating results with budgeted operating results.

B.  Develop a procedure to record current sales; compute percentage increases or decreases in sales over time; and develop a procedure to estimate future sales.

C.  Use sales histories and standardized recipes to determine the amount of food products to buy in anticipation of forecasted sales; purchase, receive, and store food products in a cost-effective manner; and compute the cost of food sold and food cost percentage.

D.  Use sales histories in conjunction with standardized drink recipes to develop a beverage purchase order; compute the dollar value of bar transfers both to and from the kitchen; and compute an accurate cost of goods sold percentage for beer, wine, and spirits.

E.  Use management techniques to control the costs associated with preparing food and beverages for guests; compute the actual cost of producing a menu item and compare that cost against the cost that should have been achieved; and apply various methods to reduce cost of goods sold percentage.

F.  Choose and apply the best menu type to an operation; identify the variables that must be considered before establishing menu prices; and assign menu prices to menu items based on their cost, popularity and ultimate profitability.

G.  Identify the factors that affect employee productivity; develop appropriate labor standards and employee schedules for use in foodservice operations; and analyze and evaluate actual labor utilization.

H.  Assign Other Expenses in terms of being fixed, variable, or mixed; differentiate controllable from noncontrollable Expenses; and compute Other Expense costs both in terms of both cost per guest and percentage of sales.

I.  Prepare an Income (Profit and Loss) Statement; analyze sales and expenses using the P&L statement; and evaluate a facility’s profitability using the P&L statement.

J.  Analyze a menu for profitability; prepare a cost/volume/profit (break-even) analysis; and establish a budget and monitor performance to the budget.

K.  Identify internal and external threats to revenue dollars; create effective countermeasures to combat internal and external theft; and establish and monitor a complete and effective revenue security system.

L.  Identify management challenges in a global economy; identify advances in technology and information management; select advance technology products, and monitor developments in cost control technology.

COURSE SCHEDULE (subject to change):

Date / Topic / Chapter
Day1&2 / Introduction & Managing Revenue and Expenses / 1
Day 2&3 / Determining Sales Forecasts / 2
Day 3,4 and 5 / Managing the Cost of Food / 3
Day 6&7 / Managing the Cost of Beverages / 4
Day 8 / Test—Chapters 1-4
Day 9&10 / Managing the Food and Beverage Production Process / 5
Day 11&12 / Managing Food and Beverage Pricing / 6
Day 13&14 / Managing the Cost of Labor / 7
Day 15 &16 / Controlling Other Expenses / 8
Day 17 / Test—Chapters 5-8
Day 17&18 / Analyzing Results Using the Income Statements / 9
Day 19 / Planning for Profit / 10
Day 20 / review
Day 21 / Final—Chapters 9-10 and perhaps 11

OUTCOMES ASSESSMENT:

Participation 10%

Assignments/Quizzes 25%

Exam 1 & 2 20% & 20%

Final Exam 25%

Total 100%

Example of Grade Calculation (Weighted Average):

Assessment / Raw Score / Grade / Weight / Calculation / Weighted Average
Participation / 70/75 / 93 / 5% / 93*.05 = / 4.65
Assignments/Homework / 400/450 / 89 / 25% / 89*.25 = / 22.25
Exam #1 / 90 / 90 / 20% / 90*.25 = / 18.00
Exam #2 / 88 / 88 / 25% / 88*.25 = / 22.00
Final Exam / 93 / 93 / 25% / 93*.25 = / 23.25
Total / 90.15

Participation: Participation will be evaluated based on attendance and participation in class discussions. Unexcused absences will result in a loss of the participation grade. Students are expected to come to class prepared and will be evaluated on contributions made to class discussions.

Assignments/Quizzes: Assignments and Quizzes will be given randomly throughout the semester to help assess your progress. The assignments are expected to be handed in at the beginning of the following class period, unless otherwise stated. Since quizzes may not be announced, class attendance is a must. There will be no “make-up quiz” if you are not present when the quiz is given.

Midterm and Final Exams: Both exams will include objective and subjective questions. Examples of objective questions include multiple choice, true/false, and problems. Examples of subjective questions include short answer, essay, and case study analysis.

All students are to take special notice of the exam dates stated on the syllabus. No make-up exams will be given EXCEPT EMERGENCIES. Emergencies only include a medical emergency involving yourself or a death in your immediate family. Regular medical appointments “Check-ups” and/or “Family gatherings” do not constitute emergency situations and do not meet the aforementioned requirement. Travel plans are not emergencies. Additionally, excuses related to employment (working during the exam or sleeping late because of work the night before) do not meet the requirement for a make-up exam. I strongly advise you to contact your employer as soon as possible so that you can coordinate your work schedule with your academic schedule.

Once an exam is taken, ex post facto excuses for performance will not be considered. Additionally, extra credit projects will not be given to make up for poor exam performance. I cannot offer one student a project that I do not also offer the entire class.

ATTENDANCE AND TARDINESS: Attendance is mandatory and will be assessed in the participation grade. As it is in a professional setting, tardiness is unacceptable. This is also part of your grade and if you leave class early, you are absent.

Revisions: The instructor reserves the right to revise this syllabus and list of requirements when, in her judgment, such revision will benefit the advancement of the course goals.

Vision of the Hospitality & Tourism Management Program

To be a global leader in advancing education, creating knowledge, and shaping the hospitality and tourism professionals of the future.

Mission of the Hospitality & Tourism Management Program

Educating students for leadership in the global hospitality and tourism industries and advancing the profession through excellence in teaching, research, and service.

Program Learning Outcomes

Upon graduating with a Bachelor of Science in Hospitality and Tourism Management, students will be able to:

1.  Demonstrate basic knowledge of theoretical constructs pertaining to the hospitality and industries.

2.  Apply the basic principles of critical thinking and problem solving when examining hospitality and tourism management issues.

3.  Apply technical aspects of the hospitality and tourism industry.

4.  Demonstrate professional demeanor, attitude, and leadership needed for managerial positions in the hospitality industry.

ACADEMIC REQUIREMENTS

Beginning Fall 2013, students entering UNT who wish to pursue the Bachelor of Science with a major in Hospitality and Tourism Management enter as pre-majors. To declare a major in hospitality management, a student must have completed at least 45 hours of college course work, including HMGT 1420, HMGT 1470, HMGT 1500, HMGT 2280, HMGT 2480, HMGT 2790 and HMGT 2860, have a cumulative UNTGPA of at least 2.5, and have completed at least 100 documented work hours in the hospitality industry. A grade of C or above must be earned in each merchandising and hospitality management course completed in residence or transferred to UNT. This includes all courses with prefixes CMHT, MDSE, HFMD, DRTL and HMGT.

Pre-majors who have completed these requirements and who have a cumulative GPA of at least 2.5 may file a formal application for major status. Approved majors may then enroll in those advanced courses designated “hospitality majors/minors only.”

§  Continuing students majoring in Hospitality and Tourism Management are required to have a minimum grade point average of at least 2.35 on all courses completed at UNT.

§  A grade of C or above must be earned in each merchandising, digital retailing, hospitality and tourism management course completed in residence or transferred to UNT.

Academic requirements for graduation with a BS from the College of Merchandising, Hospitality and Tourism include:

§  A minimum of 2.5 grade point average in the professional field, with minimum grades of C required in all CMHT, MDSE, HFMD, DRTL and HMGT courses.

§  A minimum of 2.5 grade point average in all courses completed at UNT.

§  A minimum of 2.5 grade point average in all work attempted, including transfer, correspondence, extension and residence work.

Important for Timely Graduation

A prerequisite is a course or other preparation that must be completed before enrollment in another course. All prerequisites are included in catalog course descriptions. It is very important that you work with your advisor to be sure you are sequencing courses correctly (rather than taking courses scheduled at a convenient time) to avoid delayed graduation. Ultimately, it is a student’s responsibility to ensure they have met all prerequisites before enrolling in a class. Students who have not met prerequisites will not be allowed to remain in a course. Once classes begin, students often have few, if any, options for adding a different course, which can be an issue for financial aid.

For additional information regarding requirements and policies, refer to the 2013-2014 Undergraduate Catalog.

2