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Revenue Control
 
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Measures to Control Food & Beverage Revenue

Measures to Control Food & Beverage Revenue

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  • the site has a very educative information it will assist me on my revenue control to my new assignment as the Hotel Revenue auditor
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  • Very interesting site and very practical. Any slides for presenting bill to guest in a very busy cafe in a Hotel during breakfast time when their meal is already included in their room rate, nevertheless the bill still has to be raised?
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    Revenue Control Revenue Control Presentation Transcript

    • Revenue Control Food & Beverage Management III Year Prepared By: Bhavin Parekh
    • Contents
      • Standard Revenue and Guest Check Control Systems
      • Manual guest Check System
      • Automated Guest Check System
      • Collecting Revenue
      • Server Banking System
      • Cashier Banking System
      • Revenue Reports
    • Contents (cont’d…)
      • Assessing Standard Revenue – Beverage Operations
      • Automated Beverage Systems
    • Objectives
      • To understand Revenue Control Procedures typical of Food & Beverage Operations with Manual Guest Check Systems.
      • To understand POS (Automated Guest Billing Systems) and how they simplify Guest Check Control Systems.
      • To differentiate between Server Banking and Cashier Banking Systems.
      • Explain how Managers use Daily Cashier Reports as a Revenue Control Tool.
    • Objectives (Cont’d…)
      • To understand the Use of POS Reports as Revenue Control Tools.
      • To comprehend how Managers in Non – Automated Operations Control Beverage Revenue and to Identify the Advantages and Disadvantages of Automated Beverage Control Systems.
    • Introduction
      • The Last phase of the Operational Cycle is the collection of Revenue for Products and Services offered to the Guests of the Property.
      • Planning for and Controlling Revenue is just as important as properly managing Costs.
    • Introduction (cont’d…)
      • The first step in designing a Control System is to develop a Standard.
      • Development of a Revenue Standard will then help in comparing the Standard Revenue with the Actual Revenue .
      • How should a F&B Operation define Revenue Standards?
    • Introduction (cont’d…)
      • Defining Revenue Standards
      • 1. Method 1 : Based Upon Guest Checks
      • The Standard – Amount of Revenue an Operation expects to collect from it’s Operation – is the sum total of Guest Checks over a Meal Period.
      • Method 2 : POS Summary
      • Unit Sales information entered into the POS System can be summarized at the end of the Meal Period and the Sales Figures can be Multiplied with the Menu Items Costs to yield Revenue Expectations or Standards.
    • Guest A $ 25.00 Guest B $ 30.00 Guest C $ 100.00 Guest D $ 75.00 All Guest Checks are collected at end of Meal Period & Summed Standard Revenue Non – Automated System Server POS End of Meal Period Sales Summary Manual Data Entry Automated System
    • Standard Revenue and Guest Check Control Systems
      • In some Food & Beverage Operations, a Guest check system is at the heart of Revenue Control.
      • The Standard (Expected) amount of Revenue is represented by the total of all amounts recorded on Individual Guest Checks for a Meal Period (Periods) after all Checks have been Accounted for .
    • Guest Check Control Systems – Non – Automated Operations / Manual System
      • A fundamental Revenue Control Procedure requires that server neatly write all F&B Orders on Guest Checks.
      • Checklist for Preparing a Check Manually:
      • Servers must use pens and not pencils
      • All items ordered by the Guest must be neatly written on the check
      • Mistakes must be crossed and not erased. There should be no overwriting.
      • All Corrections must bear the signature / initial of the respective Supervisor.
    • Check List for Check Writing No Over Writing Any Correction To be Authorized by Supervisor No Erasing Only Strike Through Legibly Writing Use Pens Only Guest Check
    • Guest Check Control Systems – Non – Automated Operations / Manual System
      • Initializing by the Supervisor :
      • Before Initializing, for a Correction made on the Check; the Supervisor must check with the Kitchen / Bar if the menu item has been prepared or not.
      • Dealing with Void Items :
      • Sometimes, the Guest might just change his mind in the middle of an order or a situation may come up which might need his urgent attention. In such cases, he may cancel the Order. Such items have to be Voided and the Supervisor’s authorization must be obtained.
    • Dealing with Corrections on Guest Checks If mistake of the Server YES NO Debit the Server Tips / Salary Evaluate the Situation Write Off the Cost Check whether Item has been Prepared by the Bar / Kitchen Seek a Logical Explanation Item Deletion / Void Write Off the Cost Inform Kitchen Not To Process Order If Guest Cancelled The Item
    • Guest Check Control Systems – Non – Automated Operations / Manual System
      • The Workflow in a Manual System
      • Before F&B Items are produced, Servers must provide the appropriate Production Staff with the Requisition Slip – K.O.T. / B.O.T.
      • The Server will list all items he requires for a Table on a K.O.T. / B.O.T. along with his ID, Table No., No. of Pax & Time.
      • Operations with Manual Guest Check Systems will use a Duplicate guest Check System. The Server will turn in the Duplicate Copy to the Kitchen and the first copy will be presented to the Guest after Tallying.
    • Guest Check Control Systems – Non – Automated Operations / Manual System
      • The Workflow in a Manual System (Cont’d…)
      • Requisition Slips and Duplicate Checks are useful for routine Guest Check Audit Functions.
      • At the end of the Meal Period, the Manager matches the Requisition Slips (KOT’s or BOT’s) or Duplicate Guest Check copies with the corresponding guest Checks for which Revenue has been collected.
      • Such Audits identify Frauds and Mistakes made by servers in Pricing. These must be brought to the attention of the Servers and Management makes it known to the Staff that it takes Revenue Control Seriously.
    • Guest Check Control Systems – Non – Automated Operations / Manual System
      • Guest Check Control
      • The Guest checks must be unique to the Property, such that they cannot be easily duplicated. (Generally with a Logo of the Operation).
      • Checks must be stored safely.
      • Their Issue to the Servers must be controlled.
      • All Checks must be Accounted for at the end of a Shift. Used Checks must be deposited along with Revenue Collected against it and unused Checks must be returned or Transferred to another Server in the following Shift in the presence of the Manager.
    • Guest Check Control Procedures Issued to Server At Beginning of Shit Serial No. Control Hard to Duplicate (LOGO) Must be Accounted For at Shift End Store Securely Guest Check
    • The Revenue Control Flow Chart – Manual System Checks Issued to Servers at the Beginning Of Shift Guest Orders Entered onto KOTs & BOTs (Triplicate) KOT -Kitchen Guest Orders Are Processed Orders are Served To Respective Guests Guest Check is made As per KOT / BOT Check Presented to Guest & Revenue Collected Check and Revenue Deposited BOT - Bar All Checks Compared Against KOTs & BOTs All Checks & Revenue Collected with KOTs & BOTs Guest was Billed Correctly? Standard Revenue Established Tallied with Physical Cash Count What was Produced & What was Served?
    •  
    • Guest Check Control Systems – Automated System
      • Some automated systems use Pre-Printed , Serially Numbered checks similar to those used by Operations with Manual Check Systems.
      • Before entering the Order, the Server must open a Guest Check within the System.
      • This is usually accomplished by inputting the Server’s ID No. and the Guest Check Serial No.
    • Guest Check Control Systems – Automated System
      • Once the System has recognized the Server and opened the Guest Check, the Items are entered and then relayed to more remote printers located at appropriate Production Areas .
      • Pre-Check Terminals are also equipped with Guest Check Printers.
      • As Orders are relayed to Production Areas, the same items with their Selling Prices are printed on the Server’s Guest Check.
    • The Revenue Control Flow Chart – Automated System Checks Issued to Servers Guest Places An Order POS Guest Check Opened in POS by Server ID Guest Order Entered into POS Printed with Item & Selling Prices On Server Check Relayed to Remote Printer in Production Areas Presented to Guest For Payment & Revenue Collected Sum Total of Revenue Collected for a Meal Period Adding Individual Guest Checks Total Revenue Collected (Actual) Revenue Report is Generated By Multiplying Menu Item Analysis with Item S.P. (Standard Revenue) Revenue Must Tally
    • Guest Check Control Systems – Automated System Total Amount Taxes Total Bill Amount Prices Of Items Items Ordered Time of Origin Guest Check Serial no. Server ID No. Terminal of Origin Guest Check
    • Guest Check Control Systems – Automated System
      • Modern systems eliminate the Guest Check altogether.
      • These systems maintain only an electronic File for each guest Check.
      • A thin narrow Receipt like Guest Check can be Printed at any time during Service. However, in most cases it is usually Printed after the Guest Meal, when the Server presents it to the Guest for Settlement.
      • Since no Paper Forms are used, the Table No. often becomes the Tracking Identifier for the Order. In case of Multiple Checks per Table, the Seat No. becomes the Tracking Identifier.
    • Guest Check Control Systems – Automated System
      • POS Technology Guest Check control functions eliminate the Need for most of the time Consuming Audit Procedures.
      • When items must be Voided, after they have been entered into the System, a Supervisor with a Special ID can access the System and delete the appropriate items.
      • At the end of the Meal Period, the System prints a Report showing all Voided Items along with the ID of the Server Responsible and the Supervisor who Voided the Items.
    • Guest Check Control Systems – Automated System
      • It is very essential for the System to differentiate between Voided Items and Items Returned.
      • An item that has been Voided after it has been prepared is termed “Returned”.
      • “ Returns” use up your Inventory and generate no Revenue.
      • Items Returned must be included in Inventory Usage, whereas Voided Items are not .
    • Server Fraud – Manual System Server A Takes a Guest Order Makes KOT & BOT KOT BOT Chef Processes Order as per KOT Barman Processes Order as per KOT Order is Collected & Served to Guest Server Prepares Bill For Guest Server does not charge The Guest for a Menu Item and Beverage on the Main Bill Gives the Guest a Rough Bill For the other two dishes not charged On the Main Bill Full Revenue is Collected Check Amount is Dropped in the Cash Box Balance is Pocketed and Distributed Server Raises a Void BOT/ KOT and Drops it in Box
    • Server Fraud Prevention – Automated Systems Server A Takes a Guest Order Opens Guest Check in POS Kitchen Bar Chef Prepares Orders As per Remote Printed Order Barman prepares Order As per Remote Printed Order Order is Collected & Served to Guest Bill is Automatically Generated Server does not charge The Guest for a Menu Item and Beverage on the Main Bill Gives the Guest a Rough Bill For the other two dishes not charged On the Main Bill Full Revenue is Collected Check Amount is Dropped in the Cash Box Balance is Pocketed and Distributed Server Raises a Void BOT/ KOT and Drops it in Box x x x x
    • Guest Check Control Systems – Automated System
      • At any moment in time, the Supervisors can access the POS System from any terminal and check the status of any open Transaction. This helps reduce Server Fraud, Guest Check and Revenue Control.
      • The Status of the Guest Transaction changes from Open to Closed when the Payment is Received from the Guest and Recorded in the System.
    • Collecting Revenue
      • Up until now we have been discussing procedures to assess the amount of Standard Revenue.
      • The next step in Revenue Control is to develop and implement Revenue Control Procedures to ensure that the Actual Revenue Collected corresponds to the Revenue Standards Established.
    • Collecting Revenue
      • There are essentially 2 Types of Collection Systems:
      • Server Banking System
      • Cashier Banking System
    • Collecting Revenue – Server Banking
      • With this system, the Servers / Bartenders use their own Banks of money to collect payments from Guests and retain the Revenue until the end of their Shifts.
      • In some Operations, a locking Cash Box is provided for each Server to store collected Revenue & Credit Card vouchers.
    • Collecting Revenue – Server Banking
      • Manual Scenario
      • All checks assigned to each Server are totaled by the Cashier / Manager. This results in the “Total Amount” collected by the Server.
      • Totals of Credit Card Vouchers, Room Charges, City Ledger Settlements are then deducted from the “Total Amount”.
    • Collecting Revenue – Server Banking
      • Manual Scenario
      • The Balance Amount is the Amount of Cash to be collected from the Server. The remaining amount with the Server would represent his Opening Float (Bank) plus Cash Tips earned.
      • This is a very time consuming and tedious process.
    • Collecting Revenue – Server Banking
      • Automated Scenario
      • When the F&B Operations are automated, then the POS System will be able to generate a Report at the end of the meal period for every server with the amount of Revenue accredited to him.
      • The Report generated also tells you the amount under each mode of settlement.
      • In such a scenario, it becomes fairly simple to identify the Cash Revenue & collect the same from the Server.
    • Server Sales Report
    • Server Banking System Server A Begins Shift with Float of $ 500 Check Settled by Cash $ 75 Check Settled by Cash $ 50 + Cash Tip $ 5 Check Settled by CC $ 100 Check Settled by Room Account $ 150 At End of Shift All Checks are Totaled Transaction Analysis After 1 Settlement Server Bank Balance $ 575 After 2 Settlement Server Bank Balance $ 630 Total Revenue $375 After 3 Settlement Server Bank Balance $ 630 After 4 Settlement Server Bank Balance $ 630 Revenue in Cash $125 $ 630 - $ 125 = $ 505 – Cash Tip = $ 500 Server Transactions During Shift
    • Collecting Revenue – Cashier Banking
      • With the Cashier Banking System, the Guest pays the Cashier; the Bartender or the Server ( who later pay the Cashier).
      • Manual Scenario
      • Upon receiving a Check for settlement, the Cashier will key in each item on the check into the Register.
      • The Register will tally each item and imprint the total on the check for verification with the Server’s Handwritten Total.
      • The Cashier will then retain the money and the Check.
    • Collecting Revenue – Cashier Banking
      • Automated Scenario
      • With most electronic POS Systems, the Cashier does not have to key each item from every Guest Check into the Register. The Cashier’s Terminal simply accesses the Transaction Number opened by the Server and the Cashier closes it by collecting and recording the Revenue.
      • At the end of the Shift, the Cashier’s Cash Drawer and supporting documents are accounted for.
    • Assessing Standard Revenue: Beverage Operations
      • Just as in the Control of Food Revenue, the expected Revenue from Beverage Sales is based on the total number of Items actually Sold.
    • Beverage Revenue – Non Automated Properties Guest Orders Beverage Bartender Prepares A Manual Check Check is Placed in A Slot Corresponding To Guest Table No. Guest Repeats Order Bartender Processes The Order & Serves Guest is Ready to Pay Check is Rung into the Register and Funds Deposited Check is Deposited in a Box All Checks are Totaled at Shift End Standard Revenue Actual Revenue is Compared
    • Assessing Standard Revenue: Beverage Operations
      • An obvious disadvantage of the above method is that it is very time consuming.
      • It is also not practical to separate the Preparation, Service and Collection Activities. Bartenders generally take Orders, Prepare and Serve the Drink and also collect money for the same.
      • The chances of Theft are far greater in this case.
    • Verification of Standard Revenue
      • We could use the Shift Wise Inventory Procedure to determine the Standard Revenue due from the Beverage Operation. The idea is to determine the Sale of the Operation during a Shift which multiplied by the Item S.P., would give Standard Revenue against which Actuals would be compared.
    • Establishing Standard Revenue
    • Automated Beverage Systems
      • In Automated Operations, the Task of the Management in Controlling Beverage Revenue is simplified. It is fairly simple to establish Standard Revenues and Portion Control is also enforced by the System.
      • Most Automated systems can:
      • Dispense Drinks according to the Operations’ Standards
      • Count the Number of Drinks Poured
      • Asses Standard Revenue for Beverage Sales
      • Provide Timely Management Reports
    • Automated Beverage Systems
      • To be explained by means of a OHP and Transparency.
      • Depicts the POS System, a Sample POS Screen and Automated Dispensing Unit Remotely Located with a Drink Dispensing Gun at the Bar Counter.
      • (Refer Bar & Beverage Management – Tanke – Pg. 280, 286,288)
    • References
      • Food & Beverage Controls –
      • Jack D. Ninemeier
      • (American Hotel & Lodging Association)
      • Bar & Beverage Management –
      • Kotschevar & Tanke
      • (American Hotel & Lodging Association)
    • Link to Next Lesson
      • PREVENTING THEFT OF REVENUE