F & B : COST CONTROLS dept label
PRIME
CUTS
Some Marcus Hotels & Resorts ’ properties cut their own meat and then use the trimmings for burgers or other menu items that yield a good food cost .
Hotels are finding increasingly innovative ways to keep F & B costs in check . by ANN BAGEL STORCK , MANAGING EDITOR
It is not a new reality , but it is impacting hotel F & B operations with increasing intensity and urgency : performing as a loss leader is no longer acceptable , and competition from all sides is stiffer than ever .
“ Hotels must start to run their restaurants like free-standing restaurants — changing menus more often , using locally sourced items and partnering with the butcher shop or grocer around the corner ,” says Michael Braun , food and beverage director at Ciragan Palace Kempinski Istanbul , which Kempinski Hotel Group recently honored as its Best Food & Beverage Hotel . “ These are all steps to keep costs manageable .”
F & B is a naturally volatile industry , notes Patrick Chiappetta , corporate director of restaurants for Denihan Hospitality Group , New York City , so responding quickly to changes in market prices is crucial . “ Cost fluctuation is not going to stop ,” he says . “ So in terms of purchasing , you ’ ve got to foresee that and adjust .”
Marcus Hotels & Resorts , Milwaukee , Wisconsin , works with its vendors to obtain live food costs based on fluctuating pricing , says Peggy Williams-Smith , the company ’ s corporate vice president , food and beverage . “ Most master food distributors will partner with you to keep your SKUs up to date in the system so you can run your menu mix out of your point-of-sale system to get an idea of your costs ,” she adds .
Indeed , closely monitoring data — via various computer programs or manually — is a critical daily process for keeping F & B costs in check . Robert Nyman , the Scottsdale , Arizona-based president of consultancy The Nyman Group , says every element of an F & B operation must stand on its own as a profit center , with a supervisor crunching the numbers and having a clear understanding of the financial goals . “ They know what they have to achieve versus getting surprised at the end of the month ,” Nyman explains . “ Rooms does it all the time . Food and beverage can do the same thing .”
www . hotelsmag . com October 2013 HOTELS 39