Cost Control Case Study

An owner managed 50 bedroom  hotel with a busy ground floor in competitive urban location had a Food GP that was consistently low, with little or no innovation on menus. Management had worries about complacency of the incumbent Head Chef and his ability to manage the various aspects of the operation.

We visited the property and recommended that all deliveries of goods throughout the hotel, but in particular in the kitchen area, were checked and recorded correctly by a trained individual. We aided in the commencement of an accurate weekly stocktaking procedure in the food area. We assisted in retaining an external assessor for the implementation of a comprehensive HACCP system including a minimum of four hygiene audits in the property per annum.. In conjunction with the owner we helped create a clear and comprehensive listing of the Head Chef’s Roles and Responsibilities, and came up with ways of engaging the Head Chef in up to the minute food trends.

The Hotel decided to employ a full time Cost Controller, dedicating time to all areas of procurement in the property but with particular emphasis on Food and Beverage. A Job profile/description was drawn up by us. and assistance was given in selection of the correct candidate. Training was then delivered on how to manage the department together with specific training on stocktaking and recording of same. Spread sheets were built by us to enable the accurate calculation of Food and Beverage GP, and also Food Costing.

As a Result of our input, Food profitability increased by over 10 points and remains consistent. The Beverage GP increased by 5 points. Weekly food stock-take shows the usage in the food area and allows for easy management of food costs. The property has become fully HACCP compliant and is assessed on a regular basis. The Head Chef position is now reasonably and accurately measured and a bonus scheme has been introduced and weighted against areas of responsibility. The Head Chef and F & B manager regularly visit food shops, gourmet supermarkets and similar restaurants to keep up to date on food trends.

If you need help with your Food or Beverage Profitability then contact us.