Beverage ControlBeverage Control

Beverage ControlBeverage Control

Aims of Beverage Control.Aims of Beverage Control.Beverage Cost Control Procedure.Beverage Cost Control Procedure.Preparing Daily/Monthly F&B Cost.Preparing Daily/Monthly F&B Cost.Report and analyzing of these Report and analyzing of these

Reports.Reports.

Aims of Beverage Aims of Beverage ControlControl

Aims of Beverage Control.Aims of Beverage Control.

Stock PlanningStock PlanningSales HistoriesSales HistoriesStandard YieldsStandard YieldsStandard Drink RecipeStandard Drink RecipeStandard Portion SizeStandard Portion Size

Stock PlanningStock Planning

Stock planning or volume forecasting Stock planning or volume forecasting of the sales volume for an of the sales volume for an establishment for a specific period establishment for a specific period and detailing of volume of sale for and detailing of volume of sale for each outlet as Dispense Bar, Cocktail each outlet as Dispense Bar, Cocktail Bar etc.Bar etc.

Sales HistoriesSales Histories

Record may be kept by a catering Record may be kept by a catering establishment to monitor the establishment to monitor the beverage sale and these develop list beverage sale and these develop list of most requested drinks it may be of most requested drinks it may be 90% of mixed drinks orders.90% of mixed drinks orders.

Standard YieldsStandard Yields

Standard Yield of Beverages may Standard Yield of Beverages may with few exceptions be accurately with few exceptions be accurately calculated because of the majority of calculated because of the majority of beverages there is little wastage and beverages there is little wastage and all contents.all contents.

Standard Drink RecipeStandard Drink Recipe

Standard drink recipe also be Standard drink recipe also be compile for majority of beverages compile for majority of beverages which offered sale by the which offered sale by the establishment. standard yield, recipe establishment. standard yield, recipe may be vary accurately produced as may be vary accurately produced as all content of drink may be itemized all content of drink may be itemized on the standard recipe.on the standard recipe.

Standard Portion SizeStandard Portion Size

As with standard recipe standard As with standard recipe standard portion sizes for beverages should be portion sizes for beverages should be easier to control than those for food easier to control than those for food products with some beverages.products with some beverages.

Beverage Cost Control Beverage Cost Control ProcedureProcedure

Beverage Cost Control Beverage Cost Control ProcedureProcedure

            Analyses of Income and Analyses of Income and Expenditure.Expenditure.

            Establishment and maintenance Establishment and maintenance of of standards. standards.

            PricingPricing            Prevention of waste.Prevention of waste.            Prevention of frauds.Prevention of frauds.            Management information.Management information.

Analyses of Income and Analyses of Income and Expenditure:Expenditure:

The revenue of each food & Beverage outlets is The revenue of each food & Beverage outlets is analyzed by considering the various aspects of analyzed by considering the various aspects of revenue such as: volume of food and beverage revenue such as: volume of food and beverage sales, the sales mix, the average spending sales, the sales mix, the average spending power of customers at the various times of the power of customers at the various times of the day and the number of customers served.day and the number of customers served.

The analyses of cost include departmental food The analyses of cost include departmental food and beverage costs and labor costs. The and beverage costs and labor costs. The performance of each outlet can then be performance of each outlet can then be expressed in terms of the gross profit and net expressed in terms of the gross profit and net margin (Gross Profit- Wages) and the net profit margin (Gross Profit- Wages) and the net profit

(Net Profit= Gross Profit- wages+ all overhead (Net Profit= Gross Profit- wages+ all overhead expenses such as rent, rates, insurance etc.)expenses such as rent, rates, insurance etc.)

Establishment and Establishment and maintenance of standardsmaintenance of standards

1.1. Setting up of standards is very important Setting up of standards is very important for the success of any establishment. for the success of any establishment. Without doing so no employee would Without doing so no employee would know in details the standards to be know in details the standards to be achieved nor could the employee’s achieved nor could the employee’s performance be effectively measured by performance be effectively measured by the management. An efficient unit should the management. An efficient unit should have laid down standards in manuals have laid down standards in manuals often as S.O.P’S (Standard operating often as S.O.P’S (Standard operating Procedures) which should be readily Procedures) which should be readily available to all staff for reference.available to all staff for reference.

PricingPricing

An important objective of Food & Beverage An important objective of Food & Beverage control in to provide sound basis for menu control in to provide sound basis for menu pricing including quotations for special pricing including quotations for special functions. It is therefore important to determine functions. It is therefore important to determine food & Beverage list prices in the light to food & Beverage list prices in the light to accurate food & beverage costs and other main accurate food & beverage costs and other main establishment costs; as well as general market establishment costs; as well as general market considerations, such as the average customer considerations, such as the average customer spending power, the prices charged by the spending power, the prices charged by the competitors and the prices that the market will competitors and the prices that the market will accept.accept.

Prevention of wastePrevention of waste

1.1. In order to achieve the set In order to achieve the set standards it is necessary to prevent standards it is necessary to prevent the wastage of raw material such as the wastage of raw material such as poor preparation, over production, poor preparation, over production, failure to use standard recipes etc. failure to use standard recipes etc. Even the proper use of man power Even the proper use of man power is taken in to the consideration. is taken in to the consideration.

Prevention of fraudsPrevention of frauds

1.1. It is necessary for a control system to present or It is necessary for a control system to present or at least restrict the possible areas of fraud by at least restrict the possible areas of fraud by customers and staff. Typical areas of fraud by customers and staff. Typical areas of fraud by customers are such things customers are such things

2.2. as deliberately walking out without paying;as deliberately walking out without paying;3.3. unjustifiably claiming that the food or drink that unjustifiably claiming that the food or drink that

they had partly or totally consumed was not they had partly or totally consumed was not palatable and indicating that they will not par for palatable and indicating that they will not par for it; it;

4.4. disputing the number of drinks served; disputing the number of drinks served; 5.5. making payment by stolen cheques or credit making payment by stolen cheques or credit

cards.cards.6.6. Typical areas of fraud by staff are overcharging Typical areas of fraud by staff are overcharging

or undercharging for items served and stealing of or undercharging for items served and stealing of food, drink or cash. food, drink or cash.

Management informationManagement information

An effective control system should provide An effective control system should provide accurate up-to-date information for the accurate up-to-date information for the preparation of periodical reports for preparation of periodical reports for management. This information should be management. This information should be sufficient enough to provide complete analyses sufficient enough to provide complete analyses of performance for each outlet of an of performance for each outlet of an establishment for comparison with set establishment for comparison with set standards previously laid down (For Example: standards previously laid down (For Example: Budget standards.)Budget standards.)

Beverage CostBeverage Cost

CostCost

Definition: Definition: Accountants define a Accountants define a costcost as a as a reduction in the value of an asset for the purpose reduction in the value of an asset for the purpose of securing profit or gain.of securing profit or gain.

In context of the hotel industry cost can be In context of the hotel industry cost can be defined as the expense to the hotel or restaurant defined as the expense to the hotel or restaurant for goods or services when the goods are for goods or services when the goods are consumed or the services rendered. consumed or the services rendered.

Food and beverages are considered consumed Food and beverages are considered consumed when they have been used, wastefully or when they have been used, wastefully or otherwise, and are no longer available for the otherwise, and are no longer available for the purpose for which they were acquired. purpose for which they were acquired.

Types of CostsTypes of Costs

Fixed Cost:Fixed Cost: These are the cost These are the cost which are normally unaffected by which are normally unaffected by the change in sales volume. the change in sales volume. Items of Fixed cost are as Items of Fixed cost are as follows:follows:

Examples: Insurance premium, Examples: Insurance premium, real estate taxes, depreciation in real estate taxes, depreciation in equipments etc.equipments etc.

Variable Costs: These are the cost Variable Costs: These are the cost which has direct relationship with the which has direct relationship with the sales volume. As business volume sales volume. As business volume increases, variable cost will increase; increases, variable cost will increase; as volume decreases, variable cost as volume decreases, variable cost should decrease. Items of variable should decrease. Items of variable cost are as follows:cost are as follows:

Examples: Labor cost, raw material Examples: Labor cost, raw material cost, beverage cost etc.cost, beverage cost etc.

Controllable costs: are those that can be changed Controllable costs: are those that can be changed in the short term. All the variable costs are in the short term. All the variable costs are generally controllable. The cost of food or generally controllable. The cost of food or beverage, for Example, can be changed in several beverage, for Example, can be changed in several ways-by changing portion sizes, by changing ways-by changing portion sizes, by changing ingredients or by changing both of these. The ingredients or by changing both of these. The cost of labor can be increased or decreased in the cost of labor can be increased or decreased in the short term by hiring additional employees or by short term by hiring additional employees or by laying some of them off.laying some of them off.

Non Controllable Cost: These are the cost which Non Controllable Cost: These are the cost which normally does not change in the short time. normally does not change in the short time. These are usually fixed costs, and the list of most These are usually fixed costs, and the list of most common would include rent, interest on common would include rent, interest on mortgage, real estate taxes, license fees and mortgage, real estate taxes, license fees and depreciation depreciation

Unit Cost:Unit Cost: can be defined as the expenses can be defined as the expenses incurred in the preparation of one individual incurred in the preparation of one individual portion of the dish or any other item like portion of the dish or any other item like beverage etc. beverage etc.

Total Cost:Total Cost: Total cost can be defined as the Total cost can be defined as the

expenses incurred in preparation of expenses incurred in preparation of all the food stuffs served in any meal all the food stuffs served in any meal period.period.

HistoricalHistorical Cost: Cost: Historical cost can be Historical cost can be defined as the cost incurred in past for operating defined as the cost incurred in past for operating the business entity. Such type of cost can be the business entity. Such type of cost can be found in business records, books of accounts, found in business records, books of accounts, financial statements, employees time cards and financial statements, employees time cards and similar other statements.similar other statements.

Reports Used in Food Reports Used in Food and Beverage and Beverage DepartmentDepartment

Registration No. ………….. PO……………..

Order From Sheraton Corporation,Newyork

Terms……………. Freight………………. Delivery Date…………….

Special Instructions…………………………………

Code Item Seize Quantity Price Total

231 Johney Walker 1 Litre 2 1000Re. 2000

Order Total 1000 Re.

Purveyor 2 White Authorize By…………….

Account 1 YellowDate………………………

Receiving 1 Pink

Agent 1 Blue

Format of Purchase OrderFormat of Purchase Order

Bin CardBin CardCommodity……………………. Reorder Point…………..

Maximum Stock………………. Bin Number…………….

Minimum Stock………………. Supplier………………….

Date Reference Received Issued Balance

Stores RequisitionStores Requisition

Department……………………… No. …………………..

Date………………….

Bottle code Brand Name Seize Quantity Price Amount

Bottle Magnum

Store Keeper Order By Order Date

(Signature)

Purchase RequisitionPurchase Requisition

No. …………………..

Date………………….

Vintage Specification Seize

Bottle Magnum Half

Store Keeper

(Signature)

Bar Stock Book

Name of drink

Bin No.

Opening stock

Received

Total Closing Stock

Consumption

Price/unit

Sale

1(b)

Date Day

Bvg Cost Today

Cost to Date

Actual Sales

Actual Sales To

Stnd Sales to Date

Bvg % Today

Bvg % to Date

Typical Work sheet for par stock Beverage sales using Fixed percentage

System

XYZ Company---------------------- Date------------------- Cleark---------------------

Purveyor

Invoce Number

Total Amount

Storeroom

Liquar

Direct to Department

Department

Amount Received By

Receiving Sheet

Note : 1 Copy retained by receiving. 2 Copy forward to Accountung.

SPOILAGE REPORT

HOTEL WINDSORY Date___________ Clerk__________

Item Amount Reason

Total

SPOILAGE REPORT

DAILY FOOD AND BEVERAGE COST REPORTFOOD DEP DATE___________

COST REVENUE TODAY MTD TODAY MTD % MTD

VEERANDA

ROOM SERVICE

CLAUDINE’S

BANQUETS

GALLEY

TOTAL RESTAURENT

HELPS HALL CREDIT

DAILY FOOD AND BEVERAGE COST REPORT

Continued……..

VEERANDA

ROOM SERVICE

CLAUDINE’S

ATRUIM

BANQUETS

POOL BAR

TEXAS

CAPTAIN’S

SHOWROOM

BINGO

UPPER EDI

TOTAL ALL BEVERAGE

BEVERAGE DEPARTMENT

NOB HILLFOOD

BEVERAGE

NOTES:

Brand

Issue

Additional issue

Total available

Ending inventory

Usage

Bottle cost

Standing bottle sales value

Total costs

Standard costs

Actual sales

Variance + or(-)

1 2 10 12 3 9 $9.5 $16 85.59

144 144 -

2 4 6 10 2 8 $15.5

$124 124 176 176 -

3 12 2 14 1 3 $4.78

$ 62 62 169 156 13

4 $8.75

5 $8.72

Banquet worksheet Date____________ Group______________A B C D E F G H I J K L

Banquet worksheet

Cashier _________________ Date________________

CASH RECONCILIATION

1. Cash 2. Opening Bank ______________ Register cocktail hour Dinner HourClosing Bank ______________ Closing Reading ________ ________Net Cash ______________ Opening Reading ________ ________+ Paid Outs ______________ Register Sale ________ ________Voids ______________ Coupons ________ ________+ Coupons ______________ Transfers(+ or_) ________ ________ + Charges ______________ Total Receipts ______________ Total Receipts ________ ________Over/(Short) ______________ Sales by item (Register) Coupons etc _________House wine ______________ Sales in DR ( included in meal ) _________ Wines _______________ Soft Drink _______________ Total Sale For Events _________Liquor _______________Cordials _______________Other _______________Total Sales _______________

5. #1 Total Receipts ____________________ #2 Total Cocktails & Dinner ____________________ #3 Total Sales & Coupons ____________________

Thank YouThank You

By - Om SinghBy - Om Singh

Amrapali Institute of Hotel Amrapali Institute of Hotel ManagementManagement