Introduction
Food and beverage comprise an essential component for guest offering. Location-based pursuit ability accompanied with well-executed food and beverage offerings to guests will certainly increase per capita food and beverage sales of $5 or greater with increase of other sales by enhancing the guests’ length-of-stay. A location should be aptly chosen to derive inspiration from their environment – like sea seashore, town or mountain, for indulging a sense of spirit and place into the design and cuisine. Thus, food and beverage is actually the driver of guest visits.
Food and Beverage Profitability Generalizations
In dealing with food and beverage profitability, income is one part of the equation, while prime cost forms the other part of the equation. Prime cost denotes the total cost of the goods sold and includes food, beverages, related paper products, gross labour cost of all food and beverage staffs. Labour cost comprises of payroll, payroll taxes, medical cover and other employee benefits. In a food service capacity, prime cost should be 60 % or less of food and beverage income for attaining a good target. Proper management of prime costs requires promise, actions and regulation; and can consequently help food and beverage sales to add $2 profit per guest.
It is essential to keep a regular record of prime cost since it includes the two most controllable costs of labour and goods sold. It needs to be also emphasized that calculation of cost of goods sold also should be done frequently on a weekly or bi-weekly basis. This will nevertheless alter the attitudes and behavior of the kitchen staffs since it evokes a sense of awareness of the necessity of controlling food and beverage costs. Keeping track of food costs on a regular basis will normally result in a reduction of 2 % to 4 % or more to cost of goods sold.
In addition to providing the labour costs and cost of goods sold to the food and beverage manager, an open-book approach for the purpose of sharing the information with all food and beverage staffs is highly recommended to advance performance and income. It is necessary to post two graphs, where one will show the weekly labour percentage and the other will depict the weekly or bi-weekly cost of goods sold. The vertical axis of the graph will demonstrate the rising percentage, while the horizontal axis should show the time periods. The target range and the newly posted results either weekly or bi-weekly will provide the staff members instant response on performance and their subsequent role.
Food and Beverage Profitability Approaches
It is imperative to maintain a list of options of food and beverage utilizing creativeness that is not only thrilling to our diners but is also easily reached to a display of palates. The best service would be to serve high quality food in their rooms in a timely manner with excellent service. A glass of fresh lemonade upon check in can make a customer for life. Commencing from the guest’s familiarity to the food deliverance, in-room-dining can prove to be very demanding. Due consideration should be given to guest requirements, seasonality of the ingredients and food excellence. Furthermore, exploitation of interactive digital incorporation may go a long way in food and beverage sale profitability along with other initiatives and marketing initiatives.
References
White Hutchinson Leisure & Learning Group (2010). Managing prime food and beverage costs for maximum profitability. Leisure eNewsletter Vol. X, No. 7, November-December 2010. Retrieved Website: http://www.whitehutchinson.com/news/lenews/2010_december/article106.shtml
