Monitoring Beverage Operations

1
Monitoring Beverage Operations

• HRT 276 Chapter 16
• Part III Beverage Control

2
Thanks to

• The information in this presentation comes from
  Chapter 16
• Principles of Food, Beverage, and Labor Cost
  Controls
• By Paul R. Dittmer
• 7th Edition. 2003. New York John Wiley Sons

3
Introduction

• Monitoring Beverage Operations
• Maintaining SOP
• Training and monitoring staff performance
• Monitoring beverage revenue
• Monitoring beverage expense
• Comparing actual cost to standard cost
  comparing actual cost to actual sales
• Comparing actual use to theoretical use
• Comparing actual sales to theoretical sales

4
Cost Percent Method

• Monthly Calculations
• Cost / Sales Beverage Cost
• Beginning Inventory
• Purchases
• /- Transfers in or out, Credits, invoices in
  transit
• - Ending Inventory
• Beverage cost in dollars
• The percentages are compared with historical
  benchmarks
• See figure 16.2

5
Cost Percent Method

• Daily Calculations
• Cost / Sales Daily Beverage Cost
• Requisition cost is extended
• Daily beverage sales from the daily receipts
• See Figure 16.3 for a simple example
• Daily adjustments may be considered, as well
• Daily Additions
• Daily Subtractions
• See Figure 16.4 for a more detailed example
• The percentages are compared with historical
  benchmarks

6
Standard Cost Method

• Standard Drink Recipes
• Comparing actual cost for a period with standard
  cost for a period
• Standard costs are determined by tracking
• The types of drink sold for the period
• The number of each drink sold for the period
• When each drinks standard cost is extended based
  on the number sold, the total cost is the
  theoretical cost
• The actual cost is compared to the standard cost
• Once the difference, in dollars, is known
• Evaluated and investigate
• Check variances

7
The Liquid Measure Approach

• Determine the actual number of ounces used in the
  period
• Determine the theoretical number of ounces that
  should have been used
• Compare the two
• If different, which way over or under?
• Over-pouring
• Under-pouring
• Sometimes tracking sends a message

8
The Sales Value Approach

• Determine the potential sales value of each
  bottle of product based on standards
• We know the ounce per drink amount
• We know the ounces per bottle
• We know the cost per bottle
• We know the selling price of each drink
• We know how much was used
• From these figures, we calculate the potential
  value (in revenue terms) of each bottle
• This is valuable is drinks are sold straight

9
Actual Sales Record Method

• Not all liquor is sold straight
• Mixed drink differential
• The difference between the sales price of a given
  drink and the sales value of the same ingredient
  sold straight
• Example vodka shot 3.75 Bloody Mary 4.75
• The differential is 1.00
• Differentials can be positive or negative
• This issue is why the Sales Value approach
  discussed on the previous slide doesnt work for
  all liquor
• A more detailed analysis would be required (16.7)

10
Average Sales Value Method

• Less time-consuming than the Actual Sales Record
  method
• Average differential is determined during a test
  period
• Might be done once per quarter to capture
  seasonal fluctuations in beverage sales mix
• The method (shown in Figure 16.8) tracks all
  drinks made with a particular liquor
• Calculate total ounces
• Calculate total sales, based on drink pricing
• Determine Sales Value per Ounce, on average
• Compare actual sales with sales value per ounce
  totals