FOOD COST MANAGEMENT: A COMPARISON STUDY OF 3 BRANCHES OF KORBEQ RESTAURANT BY STEVAN MEATSHOP
By Jason Liuden
11603085
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION - HOTEL AND TOURISM MANAGEMENT concentration
FACULTY OF BUSINESS AND COMMUNICATION
SWISS GERMAN UNIVERSITY The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia Revised after Thesis Defense on 13 July 2020
July 2020
Jason Liuden STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Jason Liuden
_____________________________________________
Student Date
Approved by:
Mr. Rano Abryanto, S.Tr., M.Par.
_____________________________________________
Thesis Advisor Date
Dr. Nila Krisnawati Hidayat, SE. MM
_____________________________________________
Dean
Date
Jason Liuden ABSTRACT
THE IMPACT OF FOOD OPERATIONAL CONTROL CYCLE TOWARDS FOOD COST MANAGEMENT: A COMPARISON STUDY OF 3 BRANCHES OF
KORBEQ RESTAURANT BY STEVAN MEATSHOP
By Jason Liuden
Mr. Rano Abryanto, S.Tr., M.Par.
SWISS GERMAN UNIVERSITY
This research aims to investigate the impact of food operational control cycle towards restaurant food cost management in Korbeq restaurant by Stevan Meat Shop. In this research it will mainly focus on quantitative method however to strengthen the study it will also be supported with qualitative method and direct observation before the pandemic occurred. Furthermore, this study has come up with conclusion that food operational control cycle has an impact on food cost management. Based on results it shows that food operational control cycle contributes 41.9% on impacting food cost management on restaurant operational, and another 58.1% was caused by other factors that are not mentioned in this study. The dimensions of food operational control cycle also analyzed using descriptive study supported with qualitative data to determine which factors of food operational control cycle has the most impact. As a result, issuing and production determined as the most impactful dimension. The other dimension of the food operational control cycle are menu planning, purchasing, receiving, storing, service.
Keywords: Food and Beverage, Food Service Industry, Management, Operational Control Cycle, Food Cost Management
Jason Liuden
© Copyright 2020 by Jason Liuden All rights reserved
Jason Liuden DEDICATION
I dedicated this work to my god, parents, family, proposed advisor, my research methodology lecture and friends for all of their blessing and support. Thank you for always supporting me all the time.
Jason Liuden ACKNOWLEDGEMENTS
First of all, I would like to praise Almighty God that has allowed me to complete this piece of work. His countless blessings, hope, strength and grace has helped me in overcoming the faced challenges throughout the process. Thank you for the intangible support that He gave.
Secondly, I thank for both of my parents and brother, Jenny Lukito, Bangun Maridjan and Vincent Liuden for their endless love, support and pray in every step of my life. I am grateful for having such inspiring and tough role models. Without their sacrifices, I am truly aware that I would not be able to experience life as a whole.
Thirdly, I also would like to give my biggest appreciation to Mr. Rano Abryanto, S.Tr., M.Par. as my advisor for all his time, hard work, patient, education, and guidance from the beginning until the end of this thesis. Your guidance and education has gave me a true perspective working as a true chef.
Fourthly, to the one and only Caroline Tania my first ever best friend at SGU that I truly love. Thank you for always creating every moment in SGU to be wonderful memories. I am grateful for having the most hard working, kind, reliable, lovely and supportive girlfriend like you.
Fifth, to all my best friends in SGU, Jennifer Sydnie, Patricia Josephine, Natasya Edith, Ellisa Natalia, Prisca Ivana, Matthew Michael and David Fernanda. Thank you for always be there for me through ups and downs, thank you for creating our Europe study trip unforgettable and lovable. Love you guys a lot.
Last but not least, I am blessed to obtain the encouragement from my inner circle throughout the process, namely Stanley Setiawan, Billy and the refreshment support from my Cookies Family (Oreo, Regal and Pocky).
Jason Liuden
Table of Contents
THE IMPACT OF FOOD OPERATIONAL CONTROL CYCLE TOWARDS FOOD COST MANAGEMENT: A COMPARISON STUDY OF 3 BRANCHES OF
KORBEQ RESTAURAN T BY STEVAN MEATSHOP ... 1
STATEMENT BY THE AUTHOR ... 2
ABSTRACT... 3
© Copyright 2020 ... 4
DEDICATION ... 5
ACKNOWLEDGEMEN TS ... 6
Table of Contents ... 7
LIST OF FIGURES ... 11
LIST OF TABLES ... 12
CHAPTER 1 - INTRODUCTION ... 14
1.1 Background... 14
1.2 Research Problem ... 17
1.3 Research Objectives ... 18
1.4 Research Questions ... 19
1.5 Scope and Limitation... 19
1.6 Significance of Study ... 19
CHAPTER 2 - LITERATURE REVIEW ... 21
2.1 Food Cost and Sales Control ... 21
2.1.1 Food Cost ... 22
2.1.1.1 Fixed Cost ... 22
2.1.1.2 Variable Cost ... 23
2.1.1.3 Controllable Costs ... 24
2.1.1.4 Non-controllable Costs ... 24
2.1.2 Food Sales... 25
2.1.2.1 Monetary Terms of Food Sales... 25
2.1.2.2 Nonmonetary Terms of Food Sales ... 26
2.1.3 Food Cost-to-Sales Ratio: Cost Percent ... 27
2.1.4 Food Cost Control and The Cost/Volume/Profit Equation... 27
2.1.5 Variable Rate and Contribution Rate... 28
2.2 Restaurant Operational Control Cycle ... 28
Jason Liuden
2.2.1.1 Menu planning ... 30
2.2.1.2 Purchasing... 31
2.2.1.3 Receiving ... 32
2.2.1.4 Storing... 33
2.2.1.5 Issuing ... 33
2.2.1.6 Food Production... 34
2.2.1.7 Service and Serving ... 34
2.2.2 Restaurant ... 35
2.3 Benefits of Food Cost Management ... 39
2.3.1 Company Advantages ... 40
2.3.2 Effects on Employee ... 41
2.3.3 Aid to planning ... 42
2.3.4 Performance Measurement ... 43
2.4 Previous Study ... 43
2.5 Study Differences ... 48
2.6 Research Model ... 49
2.7 Hypothesis ... 50
CHAPTER 3 – RESEARCH METHODS ... 50
3.1 Type of Study ... 51
3.2 Unit of Analysis & Observation ... 51
3.3 Population & Sampling ... 52
3.3.1 Population ... 52
3.3.2 Sampling ... 52
3.3.3 Sampling Technique ... 53
3.3.4 Type of Sampling ... 54
3.4 Data Source and Collection Method ... 55
3.4.1 Type of Data ... 55
3.4.1.1 Primary Data ... 55
3.4.1.2 Secondary Data ... 55
3.4.2 Scale... 56
3.5 Operational Variables ... 57
3.6 Data Processing Procedure ... 67
3.6.1 Pre-Test ... 67
3.6.1.1 Data Screening ... 68
3.6.1.2 Validity Test ... 68
3.6.2 Reliability Test... 69
3.7 Data Analysis Technique... 71
3.7.1 Descriptive Statistic Analysis ... 71
3.7.2 Classical Assumption Test... 71
Jason Liuden
3.7.3 Simple Regression Analysis ... 72
3.7.4 Qualitative Methods... 73
CHAPTER 4 – RESULTS AND DISCUSSION ... 74
4.1 Brief Company Background ... 74
4.1.1 Branches Comparison Data ... 75
4.2 Pre-Test Result ... 77
4.2.1 The Result of Validity Pre-Test ... 77
4.2.1.1 Food Operational Control Cycle (X) ... 77
4.2.1.2 Food Cost Management (Y) ... 80
4.2.2 The result of Reliability Pre-Test ... 81
4.2.2.1 Pre-Test Reliability Test Case Processing Summary ... 82
4.2.2.2 Pre Test Reliability Test Reliability Statistics ... 82
4.3 Respondent Profile ... 82
4.3.1 Demographic Data ... 83
4.3.1.1 Gender... 83
4.3.1.2 Age... 84
4.4 Descriptive Statistic Analysis ... 84
4.4.1 Menu Planning (X) Descriptive Comparison Analysis ... 85
4.4.2 Purchasing (X) Descriptive Comparison Analysis ... 86
4.4.3 Receiving (X) Descriptive Comparison Analysis ... 87
4.4.4 Storing (X) Descriptive Comparison Analysis ... 88
4.4.5 Issuing (X) Descriptive Comparison Analysis ... 89
4.4.6 Production (X) Descriptive Comparison Analysis ... 90
4.4.7 Serving (X) Descriptive Comparison Analysis ... 91
4.4.8 Food Cost Management (Y) Descriptive Comparison Analysis ... 92
4.5 Classical Assumption Test ... 93
4.5.1 Normality Test ... 93
4.6 Inferential Statistic Analysis... 95
4.6.1 Simple Linear Regression... 95
4.6.1.1 Model Summary ... 95
4.6.1.2 F-Test Result... 100
4.6.1.3 T-Test Result ... 100
4.7 Hypothesis Analysis and Discussion ... 102
CHAPTER 5 – CONCLUSIONS AND RECCOMENDATIONS ... 103
5.1 Conclusions ... 103
5.2 Recommendations ... 104
5.2.1 Recommendations for Owner and Managerial Implications ... 105
5.2.1.1 All Branch ... 105
5.2.1.1.1 FOCC(X) - (Receiving, Issuing, Production & Serving) ... 105
5.2.1.1.2 Food Cost Management (Y) ... 106
5.2.1.2 Recommendations for Owner... 107
Jason Liuden
GLOSSARY ... 109
Food Operational Control Cycle ... 109
Food Cost Management ... 109
Server ... 109
Butcher ... 109
Cooks ... 109
Simple Linear Regression ... 109
SPSS... 109
References ... 110
APPENDICES ... 117
Appendices 1: The Finalize Test Q uestionnaire after Item Analysis ... 117
Appendices 2: POST TEST & PRE TEST RESULT ... 123
Appendices 3: Gading Serpong SPSS (Descriptive) Result ... 130
Appendices 4: Harmonie Exchange SPSS (Descriptive) Result... 131
Appendices 5: Pantai Indah Kapuk SPSS (Descriptive) Result... 132
Appendices 6: Pantai Indah Kapuk Branch Photo ... 133
CURRICULUM VITAE ... 140
Jason Liuden LIST OF FIGURES
Figures Page
Figure 1. 1 : HOREKA Business Growth in Indonesia, 2016 ... 15
Figure 1. 2: General Restaurant Operating Structure ... 17
Figure 2. 1: 7 Steps of Food and Beverage Operational Control Cycle, 2006 ... 29
Figure 2. 2: Food Cost Management Benefits, 2019 ... 40
Figure 2. 3: Research Model ... 50
Figure 4. 1: Gender Statistic ... 83
Figure 4. 2: Age Statistics ... 84
Figure 4. 3: Distribution of the Data in P-Plot ... 94
Figure 4. 4: Distribution of the Data in Histogram ... 95
Jason Liuden LIST OF TABLES
Table Page
Table 2. 1 : Previous Study ... 43
Table 2. 2: Study Differences ... 48
Table 3. 1 Likert Scale ... 56
Table 3. 2 Operational Variables ... 57
Table 3. 3: Pearson Correlation... 69
Table 3. 4 Cronbach’s Alpha ... 70
Table 3. 5: Coefficient of Determination (R2) Effect Size... Error! Bookmark not defined. Table 4. 1: All Branches of Korbeq Restaurant Data (Dec’19 – Feb’20)... 76
Table 4. 2: Pre-test (X) Validity Result ... 80
Table 4. 3: Pre-test (Y) Validity Result ... 81
Table 4. 4: Pre Test Case Processing Summary ... 82
Table 4. 5: Pre Test Reliability Test Result ... 82
Table 4. 6: Summary of “Gender” Profile ... 83
Table 4. 7: Likert Scale ... 85
Table 4. 8: Menu Planning (X) Descriptive Statistics ... 85
Table 4. 9: Purchasing (X) Descriptive Statistics ... 86
Jason Liuden
Table 4. 11: Storing (X) Descriptive Statistics ... 88
Table 4. 12: Issuing (X) Descriptive Statistics ... 89
Table 4. 13: Production (X) Descriptive Statistics ... 90
Table 4. 14 Serving (X) Descriptive Statistics... 91
Table 4. 15: Food Cost Management (Y) Descriptive Statistics ... 92
Table 4. 16: Normality Test – Kolmogorov Smirnov Test ... 94
Table 4. 17: Model Summary of Simple Linear Regression ... 99
Table 4. 18: F-Test Result... 100
Table 4. 19: T-Test Result... 101
