Hospitality Management: Food and Beverage Cost

Food and Beverage Cost

• Food cost refers to the total cost incurred in purchasing food items for a specific period.
• Factors influencing food cost include ingredient prices, portion sizes, wastage, and inventory management.

Beverage Cost

• Beverage cost is the total cost incurred in purchasing beverages, including alcoholic and non-alcoholic drinks.

Purchasing and Procurement

• Purchasing involves the principles and strategies guiding the acquisition of goods and services.
• Procurement is the process of acquiring goods and services from external sources.

Technological Applications in Procurement

• Automation can be used to improve procurement processes.
• Data analytics can help in procurement decision-making.
• Supplier relationship management technology can improve vendor relationships.

Cost-Cutting Strategies

• Vendor consolidation involves consolidating purchases with fewer vendors to negotiate better prices.
• Implementing efficient inventory management practices can minimize waste and reduce costs.
• Developing strong negotiation skills can help secure favorable terms with suppliers and vendors.

Personnel and Human Resources

• Personnel and human resources involve the strategic oversight and coordination of an organization’s workforce.

Labor Cost

• Labor cost refers to the total expenditure incurred by an organization on its workforce, including wages, salaries, benefits, and related expenses.

Supervision and Staff Management

• Supervision and staff management involve overseeing and directing employees to ensure they perform their duties effectively and efficiently.