Pricing have a impact on total sale.
High price high sale with low volume but it
may impact guest choice
Low price high sale volume.
Pricing is an art.
Total project cost
Return on investment.
Guest ability to pay
Condition of Economy
Selling Determined by
Food and Beverage Manager
Pricing Can be Based on
Total Capital Invested
Competition in Market
Reasonable price: The manager or owner
uses his own perspective in fixing the price
of the menu / dish. The guests thinking are
not considered even how this pricing will
reflect on profit.
Highest price guest can pay
The management anticipates what
maximum a guests can pay. A slight
reduction in the management’s decision of
the price is the final price. The reduction is
done to give allowance for the mistakes
made by the management in judging the
guest’s ability to pay for a dish.
A few dishes are priced aggressively low to attract
The price of a few dishes may be as low as cost
price or lower than the cost price.
These few dishes prices are crowd / guest
Management tries to recover this loss from the
sale of other dishes and beverages.
In other way the hotel tries to improve the sales
In India, it is the most common method of fixing
Hotel decides to maintain a certain food cost.
Before fixing the price, the portion size and the
food cost of the dish is calculated. After knowing
the food cost then the selling price is decided.
The price fixed by the management is
similar to the price fixed by other similar
hotels / restaurants.
The management tries to control all cost
(food cost / variable cost, semi-variable cost
and fixed cost).
Mark Up Price
This is applicable in case of products which
are not prepared by the hotel / restaurant but
are traded by the restaurant like cold aerated
drinks, alcoholic drinks, cigarettes, etc.
Management decides to charge 30 percent
more than the purchase price of the items.
The Ratio Price Method
The previous year’s food cost and selling price’s
ratio is analyzed and management keeping that as
a benchmark decides the selling price for future.
While changing the price the elasticity of demand
should be studied. By increasing or reducing the
price the effect of sale must be analyzed and
decided whether to change price or not, if yes,
then how much? So that it helps in improving the
Cashier's Sales Summary Sheet/
Restaurant Sales Summary Sheet
cashier maintains the complete record of restaurant sales
prepared in duplicate
accounts department and control department.
In case guest settle his bill in cash then the amount received is
shown in the cash column and discount allowed is shown in
the discount column.
In case the guest settle his bill by signing (either as a hotel
resident or as a credit card / debit card holder) then the total
amount is shown in the ledger column and in the remarks
column the Room Number, Name of the Guest, Credit Card
Number / Debit Card Number and other details are entered.
Cashier then signs in the signature column.