HE-205
Evaluating Food Service Establishments ...Key Check Points
Receiving, Storage, Issuing, Inventory - 4
by Robert D. Buchanan, Restaurant,
Hotel and Institutional Management Specialist
The manager of a food service establishment and/or the manager and his supervisor need to take the time to make an overall analysis to determine the results that the organization is actually obtaining. This should be done several times a year. The evaluation should determine how well the food service operation is doing and where improvements should be made. Then some priorities, objectives, methods, and deadlines for improvements can be established.

This is one of a series of pamphlets describing how a person can fairly comprehensively, yet in less than a day, provide an overall evaluation of a food service operation. The key items, or food service conditions, to evaluate under each major category are described. Taken together, the key indicators of general conditions measure the degrees of efficiency (minimal costs) and effectiveness (optimal organizational satisfaction). A major category that has a deficient key indicator should be investigated further, and corrective adjustment should be considered and/or made where appropriate. A discussion of facts by management with the operating personnel is perhaps most needed to develop mutual understanding of the problems. Attainable performance objectives should be jointly established and reviewed at a later date.

If all key indicators are satisfactory in a major category, other aspects of that category are probably being handled with similar care. If all of the key indicators are high, but the profit is not adequate, then it will be necessary to examine the operation for inefficient purchasing and receiving practices, improper menu pricing, inaccurate records or financial statements, inventory method and method of computing the value, production waste, plate waste, security and pilferage, and so forth.

These operational analysis guidelines may be used by the manager of a single food service establishment for self-analysis, or by the unit manager’s supervisor.
1	Management Planning, Organizing, and Controlling (HE-202)
2	Personnel (HE-203)
3	Purchasing (HE-204)
4	Receiving, Storage, Issuing, Inventory (this publication)
5	Food Preparation (HE-206)
6	Food Presentation and Service (HE-207)
7	Maintenance of Building and Equipment (HE-208)
8	Sanitation and Housekeeping (HE-209)
9	Statistical and Ration Analysis (HE-210) 10 Consumer Satisfaction (HE-211)
4. Receiving, Storage, Issuing and Inventory
It is important to control the functions of receiving, storage, issuing and inventory because of the thousands of dollars of merchandise involved, to maintain the quality level of food, to insure that what was ordered was delivered and that what is needed is available. It may be that your profit dollar is shrinking at your back door —by pilfering of food, by accepting products below specifications, by items being short on count or weight and, most often, by paying for items that did not arrive.

One employee should be trained to verify both quantity and quality of food and supplies received. This employee should have the authority and responsibility for receiving, storage, and issuing. Procedures must be designed to maintain the quality of the product and to minimize the loss of food and supplies through spoilage and theft.

Receiving
Receiving of food and supplies is a process that management must initiate, supervise, and regularly evaluate to insure that the specified food quality and quantity at the quoted price is actually received and stored. The receiver will be only as demanding as he is trained to be.
Cooperative Extension Service • Purdue University • West Lafayette, Indiana