Define the following terms:

1. FTE: “Full Time Equivalent” – the number of equivalents (not the number of people) that would be a full shift – it is the ratio of the total number of paid hours during a period (part time, full time, contracted) by the number of working hours in that period– the ratio units are FTE units or equivalent employees working full-time, so one FTE is equivalent to one employee working full-time – Annual FTE = Hours worked that year divided by 2080 (52 wks x 40 hours)
2. “Danger Zone”: the temperature range in which food-borne bacteria grows most rapidly (between 40°F and 140°F)
3. Break Even Point: the sales volume at which a business earns exactly no money (the point at which cost or expenses and revenue are equal) – there is no net loss or gain, and one has “broken even”
4. FIFO: “First In, First Out” – an acronym for food storage practices (dry, refrigerated, and frozen food storage packages), it is a food rotation system that protects product quality and freshness – stock has to be rotated, so the first products displayed (IN) are the first products used or sold (OUT) in order to minimize spoilage and waste
5. Marketing Mix: the marketing mix represents the package of approaches that organizations use to attract a target market – it is a combination of factors that can be controlled by a company to influence consumers to purchase its products – marketing decisions generally fall into the following four controllable categories (“The 4 P’s of Marketing”) – (1) product, (2) price, (3) place (distribution), and (4) promotion
6. CQI: “Continuous Quality Improvement” – it is an approach to quality management that consists of systematic and continuous actions that lead to measurable improvement in services and helps ensure that products and services meet established standards
7. HACCP: Hazard Analysis & Critical Control Point – this is a systemic approach to controlling identified hazards specific to food processes – there are 7 principles of HACCP, and these guidelines were designed for the food processing industry:
   (1) Identify hazards and assess their severity and risks
   (2) Identify the critical control points (CCP) in food preparation
   (3) Establish critical limits for preventative measures associated with each identified CCP
   (4) Establish procedures to monitor CCP’s
   (5) Establish the corrective action to be taken when monitoring shows that a critical limit has        been exceeded.
   (6) Establish effective record keeping systems that document the HACCP system
   (7) Establish procedures to verify that the system is working
8. Standard of Identity: standards of identity for food are mandatory requirements which are set by a governing body that determine what a food product must contain to be marketed under a certain name in allowable commerce
9. Benchmarking: a measure of the quality of a company’s policies, products, programs, and strategies in comparison to standard measures
10. Social Marketing: advertising and marketing initiatives that promote a restaurant’s benefit for both the consumer and the greater good – restaurants utilize social marketing to advertise the freshness of ingredients, their support for the community, environmentally sound business practices and smart energy consumption – the goal is to let their customers know they’re eating a delicious meal that also benefits the community and the environment
11. Micromanagement: a management style whereby a manager involves themselves too directly in what their staff should be doing – they closely observe and/or control the work of their subordinates or employees
12. IBR Approach: “Interest-Based Relational Approach” – an approach to conflict resolution that focuses on building mutual respect and understanding, and encourages you to resolve conflict in a united, cooperative way – during the process, the focus should be on behaving courteously and consensually, and on insisting that others do the same, the priority is to help each side develop an understanding of the other’s position, and to encourage both to reach a consensus (even if that means agreeing to disagree) – this approach is based on the idea that the role of a manager is not simply to resolve conflict but to ensure that team members feel respected and understood, and that their differences are appreciated – it helps to manage conflict in a civil and “grown-up” way

Discuss the importance of the menu in food service operations. Consider the relationship between the menu and:

• The purchasing process: The menu is important to the purchasing process because the food items that are going to be purchased will be based on the menu, and more popular items will need to be purchased more frequently.
• The staff required: The menu will impact how many people will need to be hired and their skill level. If the menu is a complex one you will need a more experienced staff so that the quality of the food is not impacted as well as the amount of labor hours.
• The equipment required: The complexity of the menu will influence the type of equipment needed.
• The budget (cash flow and expenses): Budget can influence the menu because you need to be making enough to cover all costs, such as labor, raw food, and operations, and you also want to make a profit. If a menu item is causing you to lose money you need to consider whether or not to keep it.
• Marketing: The menu should be advertised in a way that is easy to read, the food should be in line with what the population you are serving wants, and you want all food descriptions should be accurate.

Discuss how the availability of food relates to menu planning. Why is it important to use seasonal products?

Availability of food impacts the foods offered on the menu as well as their price. If a food is hard to obtain or out of season, it will likely be more expensive, or it is possible it won’t be as fresh (may need to use frozen or canned). Using seasonal products is important because it helps maintain the integrity of the food product as well as its freshness, and it also reduces food costs because foods are cheaper and easier to get when they are in season.

Describe at least 3 ways in which an institutional food service (hospital, prison, school, etc.) is different from a restaurant kitchen and food service.

1. Institutional food service establishments need to follow government nutritional guidelines
2. Institutional food service establishments are non-commercial (i.e. not for profit)
3. Institutional food service establishments use tray lines instead of assembling and serving hot meals immediately to help cut down on time and increase production

Describe at least 3 ways in which they are the same.

1. Both have a budget and guidelines on how much money can be spent on food purchasing
2. Both have menus
3. Both need to practice food safety

Food Order Preparation

• Based on the information below, what can you surmise about food usage this facility? It seems like food usage is fairly high and the facility goes through their stock quickly.
• Should the par stock levels be adjusted? Why or why not? The par stock levels need to be increased because they are very low or running out of every food item, so if there was ever an issue with late deliveries or damaged food items they would not be able to run the facility with the weekly inventory amounts left over.
• What would be on the weekly food order submitted for this facility?

Item	Par Stock Level	Weekly Inventory	Weekly Food Order
Rice (5lb bags)	10	4	6
Canned potatoes (#10 cans)	6	2	4
Applesauce (#10 cans)	5	1	4
Pork and beans (#303 cans)	10	6	4
Rye bread (loaves)	4	3	1
Wheat bread (loaves)	10	1	9
Eggs (dozen)	8	1	7
Vegetable oil (liters)	2	0	2
Hot dogs (1 lb packs)	10	5	5
Chicken quarters (5 lb pkg)	10	2	8

Marketing campaigns often pair the overt (stated) benefit(s) of using their product or service with another desire of the target demographic group. For example: Using toothpaste brand X will give you shiny white teeth – paired with – having shiny white teeth will make cute people want to socialize with you. Describe a promotional campaign for a nutrition program that could utilize this marketing strategy.

Drinking this filling and nutritious smoothie for breakfast will help promote weight loss so that you can wear a bikini with confidence this summer!

A foodservice operation uses hamburger patties at an average rate of six cases per day. It takes 3 days after an order is placed to receive the order. Management wants to keep 2 days’ supply on hand. The reorder point would be how many cases?

Reorder Point = Lead Time Stock + Safety Stock

Reorder Point = (2 days supply x 6 cases) + (3 days for delivery x 6 cases)

Reorder Point= 12 + 18 = 30

Foodservice data indicate 31% of the 360 clients served ordered roasted chicken when it was a menu item. Based on the historical data, approximately how many servings of chicken should be forecasted?

Historical customer count + (Historical customer count x % of estimated increase or decrease)

360 x .31 = 111.6 –> 112 servings of chicken should be forecasted

A business pays 3% of its income as rent ($1,500), 65% towards labor and food costs, and $2,800 towards other monthly expenses. How much profitdoes this business make per month?

This business makes $13,700 profit per month.

You are planning the budget for next year. Labor costs will increase by 12%. Food costs will increase by 8%. Operating costs will increase by 2%. This year, sales totaled $1,000,000. Labor costs were 40% of income, food cost was 40% of income and operating costs were 20% of income. What is the projected budget?

The projected budget is $1,084,000.