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Beverage Control

Beverage Control
 Aims of Beverage Control.
 Beverage Cost Control Procedure.
 Preparing Daily/Monthly F&B Cost.
 Report and analyzing of these
Reports.
Aims of Beverage
Control
Aims of Beverage Control.

 Stock Planning
 Sales Histories
 Standard Yields
 Standard Drink Recipe
 Standard Portion Size
Stock Planning

 Stock planning or volume forecasting
of the sales volume for an
establishment for a specific period
and detailing of volume of sale for
each outlet as Dispense Bar, Cocktail
Bar etc.
Sales Histories
 Record may be kept by a catering
establishment to monitor the
beverage sale and these develop list
of most requested drinks it may be
90% of mixed drinks orders.
Standard Yields

 Standard Yield of Beverages may
with few exceptions be accurately
calculated because of the majority of
beverages there is little wastage and
all contents.
Standard Drink Recipe

 Standard drink recipe also be
compile for majority of beverages
which offered sale by the
establishment. standard yield, recipe
may be vary accurately produced as
all content of drink may be itemized
on the standard recipe.
Standard Portion Size

 Aswith standard recipe standard
portion sizes for beverages should be
easier to control than those for food
products with some beverages.
Beverage Cost Control
Procedure
Beverage Cost Control
Procedure
       Analyses of Income and
Expenditure.
       Establishment and maintenance of
standards.
       Pricing
       Prevention of waste.
       Prevention of frauds.
       Management information.
Analyses of Income and
Expenditure:
 The revenue of each food & Beverage outlets is
analyzed by considering the various aspects of
revenue such as: volume of food and beverage
sales, the sales mix, the average spending
power of customers at the various times of the
day and the number of customers served.
 The analyses of cost include departmental food
and beverage costs and labor costs. The
performance of each outlet can then be
expressed in terms of the gross profit and net
margin (Gross Profit- Wages) and the net profit
 (Net Profit= Gross Profit- wages+ all overhead
expenses such as rent, rates, insurance etc.)
Establishment and
maintenance of standards
1. Setting up of standards is very important for the
success of any establishment. Without doing so
no employee would know in details the standards
to be achieved nor could the employee’s
performance be effectively measured by the
management. An efficient unit should have laid
down standards in manuals often as S.O.P’S
(Standard operating Procedures) which should be
readily available to all staff for reference.
Pricing
An important objective of Food & Beverage control
in to provide sound basis for menu pricing
including quotations for special functions. It is
therefore important to determine food & Beverage
list prices in the light to accurate food & beverage
costs and other main establishment costs; as well
as general market considerations, such as the
average customer spending power, the prices
charged by the competitors and the prices that the
market will accept.
Prevention of waste
1. In order to achieve the set
standards it is necessary to prevent
the wastage of raw material such as
poor preparation, over production,
failure to use standard recipes etc.
Even the proper use of man power
is taken in to the consideration.
Prevention of frauds
1. It is necessary for a control system to present or at least
restrict the possible areas of fraud by customers and
staff. Typical areas of fraud by customers are such
things
2. as deliberately walking out without paying;
3. unjustifiably claiming that the food or drink that they
had partly or totally consumed was not palatable and
indicating that they will not par for it;
4. disputing the number of drinks served;
5. making payment by stolen cheques or credit cards.
6. Typical areas of fraud by staff are overcharging or
undercharging for items served and stealing of food,
drink or cash.
Management information
 An effective control system should provide
accurate up-to-date information for the
preparation of periodical reports for
management. This information should be
sufficient enough to provide complete analyses
of performance for each outlet of an
establishment for comparison with set
standards previously laid down (For Example:
Budget standards.)
Beverage Cost
Cost

 Definition: Accountants define a cost as a
reduction in the value of an asset for the purpose
of securing profit or gain.
 In context of the hotel industry cost can be
defined as the expense to the hotel or restaurant
for goods or services when the goods are
consumed or the services rendered.
 Food and beverages are considered consumed
when they have been used, wastefully or
otherwise, and are no longer available for the
purpose for which they were acquired.
Types of Costs
Fixed Cost: These are the cost
which are normally unaffected by
the change in sales volume. Items
of Fixed cost are as follows:
Examples: Insurance premium,
real estate taxes, depreciation in
equipments etc.
 Variable Costs: These are the cost
which has direct relationship with the
sales volume. As business volume
increases, variable cost will increase;
as volume decreases, variable cost
should decrease. Items of variable
cost are as follows:
 Examples: Labor cost, raw material
cost, beverage cost etc.
 Controllable costs: are those that can be changed
in the short term. All the variable costs are
generally controllable. The cost of food or
beverage, for Example, can be changed in several
ways-by changing portion sizes, by changing
ingredients or by changing both of these. The
cost of labor can be increased or decreased in the
short term by hiring additional employees or by
laying some of them off.
 Non Controllable Cost: These are the cost which
normally does not change in the short time.
These are usually fixed costs, and the list of most
common would include rent, interest on
mortgage, real estate taxes, license fees and
depreciation
 Unit Cost: can be defined as the expenses
incurred in the preparation of one individual
portion of the dish or any other item like
beverage etc.
 Total Cost:
 Total cost can be defined as the
expenses incurred in preparation of
all the food stuffs served in any meal
period.
 Historical Cost: Historical cost can be
defined as the cost incurred in past for operating
the business entity. Such type of cost can be
found in business records, books of accounts,
financial statements, employees time cards and
similar other statements.
Reports Used in Food
and Beverage
Department
Format of Purchase Order

Registration No. ………….. PO……………..
Order From Sheraton Corporation,Newyork
Terms……………. Freight………………. Delivery Date…………….
Special Instructions…………………………………
Code Item Seize Quantity Price Total
231 Johney Walker 1 Litre 2 1000Re. 2000

Order Total 1000 Re.
Purveyor 2 White Authorize By…………….
Account 1 Yellow Date………………………
Receiving 1 Pink
Agent 1 Blue
Bin Card
Commodity……………………. Reorder Point…………..
Maximum Stock………………. Bin Number…………….
Minimum Stock………………. Supplier………………….

Date Reference Received Issued Balance
Stores Requisition
Department……………………… No. …………………..
Date………………….

Bottle code Brand Name Seize Quantity Price Amount
Bottle Magnum

Store Keeper Order By Order Date
(Signature)
Purchase Requisition
No. …………………..
Date………………….

Vintage Specification Seize
Bottle Magnum Half

Store Keeper
(Signature)
1(b)

Bar Stock Book
Name of Bin Opening Received Total Closing Consumpti Price/u Sale
drink No. stock Stock on nit
Typical Work sheet for par stock
Beverage sales using Fixed percentage
System
Date Day Bvg Cost Cost to Actual Actual Stnd Bvg % Bvg % to
Today Date Sales Sales To Sales to Today Date
Date
Receiving Sheet
XYZ Company---------------------- Date------------------- Cleark---------------------

Invoce Total Storeroom Liquar Direct to Department
Purveyor Number Amount
Department Amount Received By

Note : 1 Copy retained by receiving.
2 Copy forward to Accountung.
SPOILAGE REPORT

SPOILAGE REPORT

HOTEL WINDSORY Date___________
Clerk__________

Item Amount Reason

Total
DAILY FOOD AND BEVERAGE COST
REPORT
DAILY FOOD AND BEVERAGE COST REPORT
FOOD DEP DATE___________

COST REVENUE
TODAY MTD TODAY MTD %
MTD
VEERANDA
ROOM SERVICE
CLAUDINE’S
BANQUETS
GALLEY
TOTAL RESTAURENT

HELPS HALL CREDIT

Continued……..
BEVERAGE DEPARTMENT
VEERANDA
ROOM SERVICE
CLAUDINE’S
ATRUIM
BANQUETS
POOL BAR
TEXAS
CAPTAIN’S
SHOWROOM
BINGO
UPPER EDI

TOTAL ALL
BEVERAGE

NOB HILL
FOOD
BEVERAGE

NOTES:
Banquet worksheet
Banquet worksheet Date____________
Group______________
A B C D E F G H I J K
Brand LIssue Additio Total Ending Usage Bottle Standin Total Stand Actual Varian
nal availainvento cost g bottle costs ard sales ce +
issue ble ry sales costs or(-)
value

1 2 10 12 3 9 $9.5 $16 85.59 144 144 -

2 4 6 10 2 8 $15.5 $124 124 176 176 -

3 12 2 14 1 3 $4.78 $ 62 62 169 156 13

4 $8.75

5 $8.72
Cashier _________________ Date________________

CASH RECONCILIATION

1. Cash 2.
Opening Bank ______________ Register cocktail hour Dinner Hour
Closing Bank ______________ Closing Reading ________ ________
Net Cash ______________ Opening Reading ________ ________
+ Paid Outs ______________ Register Sale ________ ________
Voids ______________ Coupons ________ ________
+ Coupons ______________ Transfers(+ or_) ________ ________
+ Charges ______________
Total Receipts ______________ Total Receipts ________ ________
Over/(Short) ______________

Sales by item (Register) Coupons etc _________
House wine ______________ Sales in DR
( included in meal ) _________
Wines _______________
Soft Drink _______________ Total Sale For Events _________
Liquor _______________
Cordials _______________
Other _______________
Total Sales _______________

5. #1 Total Receipts ____________________
#2 Total Cocktails & Dinner ____________________
#3 Total Sales & Coupons ____________________
Thank You
By - Om Singh

Amrapali Institute of Hotel
Management