Hospitality Management: Food and Beverage Costs

Food and Beverage Cost

• Food cost refers to the total cost incurred in purchasing food items for a specific period.
• Factors influencing food cost:
  • Ingredient prices
  • Portion sizes
  • Wastage
  • Inventory management
• Beverage cost refers to the total cost incurred in purchasing beverages, including alcoholic and non-alcoholic drinks.

Purchasing and Procurement

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

Technological Applications in Procurement

• Automation
• Data Analytics
• Supplier Relationship Management

Cost Control Strategies

Cutting Costs

• Vendor Consolidation: consolidating purchases with fewer vendors to negotiate better prices.
• Inventory Management: implementing efficient inventory management practices to minimize waste.
• Negotiation Skills: developing strong negotiation skills to 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.

This quiz covers the basics of food and beverage costs in the hospitality industry, including factors that influence costs and procurement strategies.