FOOD AND BEVERAGE MANAGEMENT Manajemen Perhotelan

PROFITABILITY Meeting 4 Manajemen Perhotelan

Profitability Differences: Hotel & Restaurant Foodservices Profitability = Revenue - Expenses Profit amounts generated by restaurant F & B is relatively easy to calculate. The process of allocating revenues and expenses applicable to F & B services in a hotel is more difficult. (alokasi biaya) Costs of F & B sales is generally higher in a restaurant than in hotel. Hotel’s “bottom line” profit from F & B sales is likely to be lower than a restaurant’s. Define allocation as the process of spreading costs between two or more profit centers to more accurately identify each department’s profitability. Payroll costs (or fixed labor costs) are higher than in a restaurant.

Marketing-related Differences: Hotel & Restaurant Foodservices Location within the community Restaurants: locations easily accessible to potential guests Hotels: locations most accessible to guests desiring lodging accommodations Location within a hotel Restaurants: locations easily accessible to potential guests Hotels: locations most accessible to guests desiring lodging accommodations Menu For hotels, F& B service is viewed as an amenity or secondary (sale of guestrooms is primary objective)

Room Service Operations: Profitability Concerns Why lose money? Relatively few properties generate profits from room service Very high labor costs High expenses incurred for capital costs Why offered? Service to guests Impacts hotel rating - some guests select hotels based on room service availability High expenses incurred for capital costs - Delivery carts / warming devices Offer hospitality suite business Provide hosted events How to offset losses? Hospitality suite business involves providing food and beverage service during conventions / conferences; hosted events are functions served by a hotel which are complementary for invited guests.

Room Service Operations: Menu Planning Factors Quality Concerns Less likely to oversee room service food quality Must offer products maintaining quality during holding and transportation to guest room (example: problems with omelet & French fries) Cross-Selling Advertising availability of other hotel services - dinner menu providing info about Sunday brunch Menu Language Discuss issue of the prompt removal of soiled room service items, and how to design procedures for this operating challenge; use the first case study to facilitate discussion with students. Language barriers for international guests - uses of pictures and multi-lingual menu descriptions Clearly state ordering-requirements (kebijakan suatu negara) - minimum order charges / mandatory tipping policies

Room Service Operations: Operating Issues An inaccurate room service order cannot be corrected quickly. A minor problem in room service may impact guest’s perceptions about the entire lodging experience. (bad effect) Communication Guest placing order / order taker / room service production-service staff / room service staff Abbreviations should be clearly understood by order taker and food production staff (singkatan harus jelas) Technology Improving the accuracy of room service orders electronic cash register (ECR) / point-of-sale terminal / remote printer Ask students about “upselling techniques” they have used in any segments of food and beverage service; then discuss how those techniques can be applied in room service. Upselling Technique Opportunities for upselling are overlooked (diabaikan) Upselling increases guest check average (A+ to A++ etc)

Room Service Operations: Within-Room Service Training issues for room service attendants Explaining procedures to retrieve room service items Asking guests where room service meal should be set up Presenting guest check and securing payment Opening wine bottles (where applicable) Question 4 in “Issues at Work” (Chapter 8) addresses special training that a room service attendant needs to become an efficient dining room server. Providing an attitude of genuine hospitality

Banquet Operations: Profit Opportunities Well-planned banquets can be profitable! Banquet menu has higher contribution margin. - banquets frequently celebrate special events Forecasting & planning production, service and labor are relatively easy. - formal guarantee is made - less likelihood of overproduction of food with subsequent waste Beverage sales from hosted or cash bars increase profit. - capable of increasing alcoholic beverage sales Stress that coordination between banquet chef and banquet manager, between production staff and service staff, between sales / marketing department and the banquet department is critical to success. Distinguish between hosted bars and cash bars. Market share is the percentage of the entire volume of business of a specific type which the hotel enjoys. Increasing market share of the community’s banquet business Increasing property’s profitability

Banquet Operations: Menu Planning Factors / concerns for planning banquet menus Guest preferences Ability to deliver desired quality products Availability of ingredients required to produce the menu Production / service staff with appropriate skills Equipment / layout / facility design issues Nutrition issues Sanitation issues Discuss the use of a banquet event order, and how this helps the banquet planning process Peak volume production / operating concerns Ability to generate required profit levels

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