Cost Control - Hotels
Querist : Anonymous
Querist : Anonymous
I think, we will have to go area by area. To start with F&B, pls let me know the number of rooms, number of outlets and whether the hotel is following uniform system of accounting or not.
Based on your answer I will reply on F&B Controls.
Querist : Anonymous
1. Establish the standard food cost %. Involve Chef and F&B controller (if you have one). Ideal ratio is 30% of revenue. Chef may have to do the recipe costing to arrive at standard cost of each item sold.
2. Sign annual provisions contract for most of the supplies (veggies, groceries, etc). This will put control on the pricing of inputs. Put a mechanism to automatically highlight when the input prices go up.
3. Close the books daily to arrive at daily food cost. Daily controls are key.
4. Have a sound policy on staff free meals. Eligibility and limits. This can be an area of abuse and senior level management involvement is necessary.
5. Have a sound policy on complementary (govt officials, owners friends, etc). Ensure that this is reported correctly and Top management is aware.
6. Put controls on all exceptions like KoT reversals, Bills prepared and canceled, discounts given due to guest not happy.
7. Have control over open items (items not in menu). How the pricing is charged.
Key - Food Cost % and hold chef responsible for food cost. A similar control can exist in Bar as well (with some modifications)
If you do not have any more questions on F&B, I will move to HK.
Querist : Anonymous
1. Put a house keeping budget in place. Mostly the driver is beds occupied. Your HK component will include toiletries, news paper, or any item that is given to guest to consume.
2. You may also have HK dept consuming items of fixed cost nature (whether the guest stay or not) like cleaning materials. Have a fixed budget on that.
3. Regarding laundry. make sure that laundry runs like an in dependant unit with revenue matches with cost .
Ideally you should not be spending not more than 30 rupees or so per guest per night stayed. Could be less, depending on what you give.
Hope your doubt is clear.
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