f&b cost control case study icap nkuht

F&B Cost Control by Ms Jennifer Chen

Zack 4991C015 Vita 4991C001 Rex 4991C004

Joyce 4991C005 Sally 4991C009

Nancy 4991C011 Brian 4991C012 Alex 50211025

21st May 2014

Research Subject: Chef Teng Chain-Restaurant

Case Study: Impact of Price Hiking on F&B and Its Counter Measurements

Company’s Introduction

Founded at 1984

Local Cuisine with French Style Cooking

Company's Motto: Service with Conscience and Moral

9 outlets.

NTD 240 million in year 2013

Utility Analysis

Utility Price Index Rate of Change for Utility Index (%)

2010 2011 2012 2013 2014 Year 2010 2011 2012 2013 2014

76.02 93.07 109.3 108.1 103.7 Dubai

Crude Oil

Cons

tant

22.43 43.78 42.2 36.41

12.08 12.08 12.08 12.08 12.8 Water 0 0 0 0

2.73 2.76 2.76 2.72 2.86 Electricity 1.099 1.099 -0.366 4.762

Mean 7.84 14.95 13.94 13.72

Utility Analysis

-5

0

5

10

15

20

25

30

35

40

45

50

2010 2011 2012 2013 2014

RATE

OF

CHAN

GE O

F U

TILI

TY P

RICI

NG

(%)

TIME LENGTH

CHART OF UTILITY INDEX Dubai Crude Oil Water Electricity Mean

Food Cost Analysis Vegetable Price Index Rate of Change of Vegetable Index (%)

2010 2011 2012 2013 2014 Year 2010 2011 2012 2013 2014

55.5 58.1 67.4 72.8 61.9 四季豆

Cons

tant

4.685 21.44 31.17 11.53

83.2 85.5 90.1 87.3 103.3 秀珍菇 2.764 8.293 4.928 24.16

91.1 93.7 88.7 99.7 101.2 杏鮑菇 2.854 -2.634 9.44 11.09

48.9 56.3 57.3 59.1 73.7 金針菇 15.13 17.18 20.86 50.72

40.1 39 45.4 51.8 51.2 菜豆 -2.743 13.22 29.18 27.68

38 35.9 49.2 45.1 49.9 九層塔 -5.526 29.47 18.68 31.32

14.3 14.5 18.8 19.8 9 高麗菜 1.399 31.47 38.46 -37.06

31.6 22.7 43.5 37.5 20.5 番茄 -28.16 37.66 18.67 -35.13

28.3 26.8 28.7 25.3 26.1 雪裡紅 -5.3 1.413 -10.6 -7.774

34.3 30.4 37.5 38 54.6 苦瓜 -11.37 9.329 10.79 59.18

89.2 84.5 82 85.1 89 筍乾 -5.269 -8.072 -4.596 -0.224

Mean -2.869 14.43 15.18 12.31

-60

-40

-20

0

20

40

60

80

2010 2011 2012 2013 2014

Rate

of C

hang

e of

Veg

etab

le P

ricin

g (%

)

Time Length

Chart of Vegetable Index

四季豆 秀珍菇 杏鮑菇 金針菇 菜豆 九層塔

高麗菜 番茄 雪裡紅 苦瓜 筍乾 Mean

Food Cost Analysis

Meat Price Index Rate of Change of Meat Index (%)

2010 2011 2012 2013 2014 Year 2010 2011 2012 2013 2014

161.37 158.67 159 159.6 169.28 Pork Ribs

Cons

tant

-1.67 -1.46 -1.09 4.90

108.34 105.77 109.17 114.59 127.53 Pork

Trotter -2.37 0.76 5.76 17.71

128.42 129.22 124.24 128.92 140.83 Chicken 0.62 -3.25 0.38 9.66

Mean -1.14 -1.31 1.68 10.75

-5

0

5

10

15

20

2010 2011 2012 2013 2014

Rate

of C

hang

e of

Mea

t Pric

ing

(%)

Time Length

Chart of Meat Index

Pork Ribs Pork Trotter Chicken Mean

Selling Price Analysis Menu Price Index Rate of Change for Menu Index (%)

2010 2011 2012 2013 2014 Year 2010 2011 2012 2013 2014 30 30 30 30 30 枸杞高麗菜

Cons

tant

0 0 0 0 30 30 30 30 30 番茄滑蛋 0 0 0 0 40 45 45 50 50 乾煸四季豆 12.5 12.5 25 25 45 45 45 45 50 金針燴鮑菇 0 0 0 11.11 45 50 50 50 50 豆豉秀珍菇 11.11 11.11 11.11 11.11 50 50 50 50 50 油燜筍 0 0 0 0 45 45 50 55 60 宮保雞丁 0 11.11 22.22 33.33 45 45 50 55 60 三杯雞 0 11.11 22.22 33.33 45 45 50 55 60 丁香小魚 0 11.11 22.22 33.33 50 50 50 55 60 青龍小卷 0 0 10 20 50 50 55 60 60 蜜汁珍珠蟹 0 10 20 20

60 金沙臭豆腐 90 蔥燒肋排 90 90 90 90 95 蹄膀 0 0 0 5.55 60 60 雞絲百頁

Mean 1.96 5.57 11.06 16.06

0

5

10

15

20

25

30

35

2010 2011 2012 2013 2014

Rate

of C

hang

e fo

r Men

u Pr

icin

g (%

)

Time Length

Chart of Menu Index

枸杞高麗菜 番茄滑蛋 乾煸四季豆 金針燴鮑菇 豆豉秀珍菇

油燜筍 宮保雞丁 三杯雞 丁香小魚 青龍小卷

蜜汁珍珠蟹 蹄膀 Mean

Relationship between Utility Index, Ingredient Index and Menu Index

-5

0

5

10

15

20

2010 2011 2012 2013 2014

Rate

of C

hang

e (%

)

Time Length

Comparism of Indices

Utility Vegetable Meats Menu

Raising Selling Price

Timing

Customers loyalty

Introducing promotion as price raising

Increase of high population dish to encourage low population dish selling

Raising less frequent, greater amount

Alternative Solutions

Cutting down portion

New concept

Meal packages

Establishment of Commissary Kitchen

Control food cost percentage

Cutting down human resources cost

Saving utility expenses

Mass Production

Big storage space

Efficiency

Bulk ordering

Standardized quality

Technology Spearhead Future World

Energy Efficient Electricity Consumption

Greater production, faster, more energy saving

Renewable Heat Technology

E-marketing

E-commerce

Conclusion / Q&A

Zack Fong Project Leader

Credit

Interviewee: Chef Tim Teng, CEO of Chef Tim Chain-Restaurant

Tutor: Ms Jennifer Chen

Zack Project Leader

Brian Background Research

Sally Utility Analysis

Vita Operation Control

Rex Commissary Kitchen

Joyce Ingredient Analysis

Alex Solution Methods

Nancy Alternative Solution

Interview

Interview

End of Presentation Thank you