Subtracting the total cost of sales from total revenue we find the department’s Gross Profit, a measure that can be used as a proxy for efficiency. But this is only half the story – cost of sales and expenses must also be factored in to gain a clear understanding of the operation.įollowing the three revenue streams, the cost of sales is sub-divided into three categories: cost of food sales, cost of beverage sales, and cost of other revenue. The USALI defines these as: audiovisual, function room rentals and setup charges, cover charges, surcharges and service charges, and miscellaneous other revenue.Īdding up these three streams (Food, Beverage, and Other) gives us the department’s Total Revenue. The final stream, Other Revenue, comprises the proceeds from selling services and not consumable food and beverage items. Therefore, this section will also be divided into five segments: Venue, In-room Dining, Banquet / Conference / Catering, Mini Bar, and Other Beverage Revenue. The structure and definitions for Beverage Revenue is exactly the same as for its Food counterpart, with the distinction that the sold items to be recorded are alcoholic beverages instead of food and non-alcoholic ones. ![]() Finally, Other Food Revenue comprises the sales of food and non-alcoholic beverages that are not included in any of the four previous categories. Mini Bar Food Revenue includes sales of packaged items (soft drinks, bottled water, candy, snacks) that are placed in the rooms for guests to purchase. The caveat here is that while the Banquet category is used for groups or individuals who are also occupying guestrooms, the Catering designation is used for the ones who are not hotel guests. Banquet / Conference / Catering Food Revenue refers to the sales in the property’s banquet rooms. In-room Dining Food Revenue refers to the sales that need to be delivered to the guests’ rooms. Venue Food Revenue encompasses the proceeds from selling food and non-alcoholic beverages in the property’s individual dining facilities, for example, restaurants, bakeries, snack shops, spas, among others. There are five sources of food revenue: venue, in-room room dining, banquet / conference / catering, mini bar, and other. Therefore, as per the USALI this department’s schedule displays three separate streams of revenue: Food, Beverage, and Other. As unexciting and trivial as this distinction may seem, it is very important that each component is recorded separately in order to be properly tracked and benchmarked. Just as its name outlines, there are two major components in this operating department: food (food and non-alcoholic beverages) and beverage (alcoholic beverages). ![]() Whatever the complexity of your Food and Beverage operation might be, following the USALI recording standards to benchmark metrics will help you streamline processes, discover opportunities within your market, and improve your property’s standing among its competitive set. Even though the Rooms Department is often considered at the center of hotel profitability, it is important to track the results across the entire organization to achieve long-term and sustainable success.
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