BST&HM 2k22

F&B Management
Labor & Revenue Control
 Consider this Example
A restaurant always exceeds its standard Labor Cost by
$100 a week (5,200 a year).
How much extra revenue that restaurant has to make
to cover the excess $5,200
Their profit margin is 12%
That means $43,333 in additional revenue has to be
made to cover the excess cost of 5,200
 Labor and Revenue Control Considerations
 Varies with size and volume of business.
 Chain operations have better procedures supported by corporate
headquarters.
 Independent operations have to make and implement and
monitor their own systems
 Overtime is necessary if volume of business increases, but no
overtime for a longer period might mean that we have over staffed.
 Pre-cut steaks and prepackaged salads can reduce labor hours as
well as portion control problems.
 Very critical to find the right number of employees to work which
is not too high or too low for smooth running of operation & guest
satisfaction.
 Labor Standards Job Analysis

A time & productivity The process of

standard against which determining the tasks,
staff member’s actual behaviors &
work performance can characteristics essential
be measured to a job
 Developing a Staffing Guide
A staffing guide answers the question, “how many labor hours are needed foe each
position to produce and sere number of meals while meeting quality requirements.

While constructing staffing guides, consider the following

 Set specific labor standards

 Labor standards should reflect productivity rates of better than average staff

members
 When staff members become more efficient through experience & work

simplification, manages should change the staffing guide to reflect higher

productivity rates.
 The standard labor hours of a staffing guide need to be converted to labor dollars to

ensure consistency with labor cost.

 Fixed vs Variable Labor
The minimum amount of Labor requirements that
labor required to operate varying according to
a food service facility volume of business
regardless of volume of activity
business
 Forecasting Sales
 Forecasting for each f&b operation is unique due to its
menu, location, & type of service.
 Sound forecasting is critical for success, production staff
uses it to purchase, receive, store, issue & produce menu
items.
 Forecast is based on historical data and then adjusted to
current situation.
 Forecasting helps managers to ensure proper number of
staff members are scheduled.
 POS system can provide you with all the necessary
information about guest count, labor hours, revenues etc of
any historical date
Forecasting for Lodging Properties
Depends on the occupancy forecasting done by rooms
division department.
In-room dining business is also forecasted by the
prospective occupancy.
F&B department knows about what banquet and
catering events are scheduled.
 Preparing Work Schedules
 Staffing guide & sales forecast are the tools to schedule staff members.

 Work flow is rarely constant, mixture of slow, rush an normal periods so better

idea not to start and begin all staff members at the same time
 Two successful tools are the manager’s past experience and his/her knowledge

of staff’s capacity.
 Schedule plans do not always work, be prepared for staff not showing up being

sick or any emergency or guest count being way more/less than expected.
 Once schedule is finalized you an project expected labor dollars by simply

multiplying the hours with the rate

Manual Guest Check System
 POS Guest Check Systems
When a servers opens an automated check, it becomes part of an Open
Check File, it may contain the following:
 Terminal Number

 Server Identification Number

 Time when the guest check was opened

 Items ordered

 Price with taxes

 Final amount due

 Accepting Personal Checks
 Some properties accept and some have strict policies against accepting personal

checks.
 Operations that accept, should require proper identification such as drivers license,

credit card

Common guideline to safeguard against fraudulent personal checks

1. Accept checks only for amount of purchase

2. Made it payable to the F&B operation

3. Do not accept if marked “for deposit or collection only”

4. Checks must be legible, no sign of tempering and smudges

5. The guest should sign in the presence of a manager/supervisor

6. When accepted checks should be marked with operations stamp “for deposit
only”
 Revenue Collection
Separation or Division of duties: Internal Control
system in which one employee do not get complete
authority over a series of transactions: order entry,
delivery, collection & reconciliation
Server Banking System Cashier Banking System
 Servers/bartenders collect payments  Outdated system where guest pays a

and submit at the end of the shift cashier, or pays server/bartender

 POS generates a closing shift report who process the payment through a

for each server/bartender cashier.

 Tips left on CC are deducted from  At the end cashier completes a

cash due report of checks opened and

 A manager tallies the CC slips, cash,

revenue collected against them.

checks and allows the server to leave

 Cashier Banking System
After the cash is restored to its original amount & types of currency, the actual
revenue is the total of the following items
 Cash for deposit (cash, personal & travelers checks)

 Payment card charges (visa, master, discover, amex)

 Purchases paid out (vouchers/receipts if any cash paid from register during the

shift)
 Tips paid out (payments for tips that guest entered on payment cards and

house accounts)
• Undercover agent
• Checks service, honesty
of staff members
• Reports his/her findings
to the management
• Especially done for bar
staff.