1. 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

2. Research Subject:
Chef Teng Chain-Restaurant
Case Study:
Impact of Price Hiking on F&B
and Its Counter Measurements

3. 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

4. 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
Constant
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

5. Utility Analysis
-5
0
5
10
15
20
25
30
35
40
45
50
2010 2011 2012 2013 2014
RATEOFCHANGEOFUTILITYPRICING(%)
TIME LENGTH
CHART OF UTILITY INDEX
Dubai Crude Oil Water Electricity Mean

6. 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
Constant
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

7. -60
-40
-20
0
20
40
60
80
2010 2011 2012 2013 2014
RateofChangeofVegetablePricing(%)
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

8. 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
Constant
-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

9. -5
0
5
10
15
20
2010 2011 2012 2013 2014
RateofChangeofMeatPricing(%)
Time Length
Chart of Meat Index
Pork Ribs Pork Trotter Chicken Mean

10. 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
Constant
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

11. 0
5
10
15
20
25
30
35
2010 2011 2012 2013 2014
RateofChangeforMenuPricing(%)
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

12. Relationship between Utility Index, Ingredient Index and Menu Index
-5
0
5
10
15
20
2010 2011 2012 2013 2014
RateofChange(%)
Time Length
Comparism of Indices
Utility Vegetable Meats Menu

13. 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

14. Alternative Solutions
 Cutting down portion
 New concept
 Meal packages

15. 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

16. Technology Spearhead Future World
 Energy Efficient Electricity Consumption
 Greater production, faster, more energy saving
 Renewable Heat Technology
 E-marketing
 E-commerce

17. Conclusion / Q&A
 Zack Fong
Project Leader

18. Credit
 Interviewee: Chef Tim Teng, CEO of Chef Tim Chain-Restaurant
 Tutor: Ms Jennifer Chen

19. Zack
Project Leader
Brian
Background Research
Sally
Utility Analysis
Vita
Operation Control
Rex
Commissary Kitchen
Joyce
Ingredient Analysis
Alex
Solution Methods
Nancy
Alternative Solution

20. Interview

21. Interview

22. End of Presentation
Thank you