Food & Beverage Cost Control Benefit to your Business

Summary of Presentation Role of Food & Beverage Cost Controller Reports Content of Proposal Benefit Example Proposal

The Cost Control Function Oversee day to day operation of Goods Receiving and Storeroom areas Assist F&B department to achieve Food & Beverage costs and advise how best to make additional profit Provide Exec Chef / F&B Mgr with guidelines for structuring of menus based on sales analysis and current purchase costs Produce monthly Cost Control report for Senior Management Manage all aspects of ADACO system input Provide training for all ADACO users

Reports The following reports can be available for distribution: Daily Flash Food cost report Recipe costings for all menus items on sale in outlets Monthly F&B Menu Analysis reports for F & B management Monthly F &B Reconciliation in line with Accounts Monthly F & B Cost Control report for senior management

Inventory Results Beverage cost was 23.7 % YTD, Menu pricing appeared in line with competition, Outlet inventories $ 100 in variance (which is a good looking result) Upon further investigation, procedural faults were found in the following areas Inventories were being conducted for the total stock amount only - There was no detailed analysis on inventory results Only 70% of items sold had a potential value attached Menu items in MICROS P.O.S. were programmed at incorrect selling price No adjustments to account for internal credits such as Food to Bar, Wine by the glass and cocktail adjustments Lack of Training of pouring measurements

What Can This Achieve Food cost - using The Park Lane Hotel as an example YEARREVCOSTGP& SAVING 1997$ 5.25m30.5%$3.65m 1998$ 5.37m27.2%$3.92m=390k 1999$ 5.67m25.6%$4.22m=990k 2000$ 5.25m24.5%$3.97m=320k 2001$ 5.46m24.6%$4.13m=690k Total Revenue has increased by 4% Total Gross Profit has increased by 13%

What Can This Achieve Beverage cost - using The Park Lane Hotel as an example YEARREVCOSTGP & SAVING INVENTORY 1997$ 2.07m23.7%$1.58m $243, $ 2.29m20.7%$1.83m=470k $162, $ 2.31m19.1%$1.87m=530k $106, $ 2.39m18.7%$1.94m=680k $ 84, $ 2.38m16.8%$1.99m=720k $ 76,900 Total Revenue has increased by 15% Total Gross Profit has increased by 25.9% Total inventory value has been reduced by 317%

Proposal Conduct property Cost Control review and F&B operational review (5 days) Present review to F&B Mgr, DOF & GM Agree monthly goals and targets with F&B Mgr,DOF & GM for 6 next months Participation in a F&B Month End Monthly conference call with C.C. & DOF to monitor progress and follow up on goals & targets Conduct Quarterly or Six monthly review (2-3 days) Agree further goals & targets as requested by property Conduct 12 monthly review to report and analyse costs with C.C., F&B DOF & GM

Review (5days) One to one discussion with all relevant team members (DOF, Exec Chef, F&B Manager) Goods Receiving/ Purchasing function Storeroom / Issuing procedures ADACO system MICROS / REMANCO P.O.S. Set up Month End procedures Audit procedures Recipe Costing/Menu Analysis Outlet menu compilation Food & Beverage Reconciliation's