Food Cost Control: Security Issues

No one wants to think that their employees could steal, but it happens. It may be as simple as occasionally taking home coffee packets from the breakroom or as serious as smuggling cases of meat out of the freezer.

Simple security measures include:

• Keep non-dietary employees out of the kitchen and storage areas.
• Lock the storage areas when not in use.
• Lock the kitchen when no one is in there.
• Keep any kitchen access areas separate from the main work areas locked.
• Carefully control access to keys.
• Monitor deliveries and do not allow delivery people to put away stock.
• Use a purchasing system with needed amounts compared to inventory.
• Monitor receiving practices and putting away stock.
• Monitor taking out garbage.

Another important aspect is to have policies and procedures in place on what constitutes theft and what will happen to employees caught stealing, educate all staff on these policies, and enforce them. Keep in mind that some people really do not see taking small items as stealing.

Food Cost Control: Tracking Expenses

It is not possible to control food costs if the manager does not know where the money is going. It is also not possible to make good decisions if the manager does not know how the money is being spent.

For example, perhaps food costs are increasing because of a new employee meal program. If a fee is charged, then the revenue is also increasing. If only expenses are reviewed, and not the revenue, an accurate picture cannot be obtained.

Perhaps food costs are increasing because of an increase in supplements. Why is there an increase in supplements? Are more acute residents who truly need supplements being admitted? If so, perhaps the food budget needs to be adjusted. Or are residents not getting the assistance they need at meal time and so more supplements are given?

Is there an increase in marketing events, special activities for employees, more resident activities requiring food? If so, it can be evaluated whether these areas are the best use of a limited resource—the food dollar.

Maybe there has been a large increase in the number of residents on thickened liquids. If these residents require thickened liquids, there may need to be an adjustment in the food budget to allow for this.

If the dietary manager is tracking where money is being spent, and there does not seem to be increases in non-resident meal areas, then it may be the meals. If the menu has not changed, then it is likely that the increased expenditures are related to waste, theft, or increased food costs from the supplier. The manager can then further investigate these areas to determine the root cause of the increase in food costs.

Food Cost Control: Food Costs Other than Resident Meals

There are many factors that affect food costs besides meals for residents. Nourishments, supplements, nursing requisitions for passing meds, and food for activities are all examples of food residents receive that is not part of their meals.

If the resident cannot get enough nutrition through the menu, it is necessary to determine why and address that problem. For example, if the resident is not eating because he is depressed, it is not likely he is going to take a supplement either. If the resident is not getting enough assistance at meal time, it is not likely she will receive assistance for a between meal nourishment.

Fortified foods at meals work well in some situations. Perhaps the resident eats, but cannot handle large volumes of food. Fortified foods are less expensive than commercial supplements.

If a resident truly needs a supplement, it is important that the resident consumes it. If not, it is the same as putting money down the garbage disposal.

Water is an acceptable fluid for passing most meds. Drink mix is good for meds with unacceptable flavors. Applesauce is good for meds that have to be crushed. Avoid more expensive items such as juice, jelly, and pudding. And preportioned items cost more than bulk.

If all of the food residents receive come out of the same food budget, look carefully at how it is used. Any money that is used for nourishments and med pass cannot be used to upgrade the menu.

In addition, many facilities offer food to employees and guests through employee and guest meals, coffee and condiments in the breakroom, snacks for meetings, picnics, holiday meals, special meals, holiday events, etc.

If these items are also is part of the food budget, then the budget must be adequate to allow for this. It is not fair to the residents to reduce the quality of the menu so that staff can get free food.

If revenue is made from employee or guest meals, then it is important that the budget reflects that the revenue offsets the cost of these meals.

Food Cost Control: Holding and Serving

The most important aspect of holding food from a cost control standpoint is to keep it safe so it does not have to be discarded. Holding it properly also helps maintain quality. If the resident does not eat it, that is waste.

A critical aspect of serving is portion control. This applies prior to meal service when salads and desserts are preportioned. The diet spreadsheet tells the employees the proper serving size for each of the diets. The correct portion control utensils must be used and used properly.

For example, if the diet spreadsheet calls for a #8 scoop, that is what must be used. And this means a level scoop, not a rounded one. Scoops, dishers, ladles, and spoodles are examples of portion control utensils. Spoons and spatulas are not.

Portion control is also essential as meals are portioned on trayline. Again, the diet spreadsheets must be followed and the designated portion control utensils used properly.

This also applies to beverages poured before or during service as well. A 4-ounce portion of juice does not appear to be very much in most glasses. Employees need to be trained on how high to fill each type of glass for each beverage.

Not following portion control is a major source of waste in facilities.

Food Cost Control: Preparation and Cooking

Accurate preparation of food is essential in controlling food costs. Over- and under-production both cost money.

The most important tool for accurate preparation and production is recipes quantified to the proper amount. If 85 servings of beef stew are needed, the recipe should be quantified to 85. It is not likely that the cooks will take the time to accurately quantify the recipe to the proper amount. If the recipe is for 50, they will probably just double it which will lead to overproduction.

Recipes not only need to be available, they need to be followed each and every time they are used. If 22 pounds of beef are needed, 22 pounds should be used. Rounding up to 25 will affect costs and quality. Rounding down to 20 will affect the nutritional status of residents and quality. If this leads to increased supplementation, the cost will be much greater than 2 pounds of beef!

The second essential tool is the production sheet. This tells the employee all the items that are needed and the amounts. This is important for production and for pre-portioning items such as salads and desserts.

If the employees do not have the tools they need to accurately prepare food, or do not follow them, costs cannot be controlled. Not using recipes and production sheets leads to wasted food which equates to wasted money.

Food Cost Control: Receiving and Storage

The two most important aspects of receiving are to make sure that what was ordered (items and amounts) is delivered and that the food is safe.

If the food that was ordered is not delivered, substitutions might need to be made which can cost more. Also, if the item remains on the invoice, then an item not received is still purchased. If items not ordered were delivered and accepted, this is money going toward food that is not needed.

If unsafe food is accepted, it will need to be discarded later to keep the residents safe. This is the same as throwing money away.

The delivery needs to be checked in and put away immediately. This is especially important for refrigerated and frozen foods. The longer these foods sit in the temperature danger zone, the greater the chance they will become unsafe and will need to be discarded.

Food must be stored properly to keep it safe and to maintain quality. If food becomes contaminated during storage or is subjected to time-temperature abuse, it must be discarded. If the quality deteriorates, it will either need to be discarded or, if used, it will negatively affect customer satisfaction. Any time food is discarded, it is the same as discarding money.

Proper receiving and storage will help control food costs.

Food Cost Control: Purchasing

Raw food costs are one important factor contributing to food costs. It is important to get the best prices possible.

Joining a group purchasing organization (GPO) is a good first step in obtaining good prices. The principle behind a GPO is that the greater the volume, the greater the discount from suppliers. An individual facility does not have much clout in negotiating prices with a supplier. The volume is not there. But if the facility joins a GPO with hundreds of other facilities, then the volume warrants special pricing. Plus the GPO does the negotiating for its members.

With the large volume, the GPO can also negotiate prices with manufacturers in addition to suppliers. This creates even more savings.

It is not enough to simple join a GPO, however. It is important to understand and follow the contract to ensure best purchasing decisions. For example, one item might appear to have the best price on the order sheet. However, if the supplier and manufacturer discounts are taken into account, a different brand might actually offer the lowest price.

Once a GPO is selected, then a supplier that the GPO supports must be selected. It is important to compare quality and not just price. It is not enough to compare apples to apples, even. It is necessary to compare the same type, size, quality, and quantity of apple to ensure the best price.

Ideally, specifications for each food item should be determined first. Then compare the price for each supplier’s product that matches your specification. One supplier’s “top” line may only be equal to another supplier’s “medium” line.

When preparing an order, a guide is very helpful in ensuring that all items in the correct quantity are ordered. This is more accurate than “winging it” each week. Both over and under ordering will negatively affect food costs. It is also more time efficient in the long run.

If errors are made in purchasing, it is extremely difficult, if not impossible, to make it up later.

Another critical tactic is to order within budget each week. This is much easier than ordering above budget and trying to make it up later.

Food Cost Control: Using the Flow of Food

How do you eat an elephant? One bite at a time.

The same philosophy can be used to control food costs. Meeting the food budget can seem an overwhelming and daunting task. One way to break this down into manageable pieces is to use the flow of food through the department. If the right procedures are followed throughout the flow of food, costs will be contained.

The flow of food includes purchasing, receiving, storage, preparation, cooking, holding, and serving. Depending upon the food items, there may also be cooling and reheating. These steps will be discussed throughout the month. In addition, how non-resident meals and food can affect food costs will be discussed.

A comprehensive menu system has the tools necessary to control costs at each step in the flow of food. Menus systems will be the topic of a future month as a good menu system also determines regulatory compliance and customer satisfaction.