Controlling Food Sales

Chapter 12Controlling Food SalesPrinciples of Food, Beverage, and Labor Cost Controls, Ninth EditionIn Chapter 2, Control was defined as “a process used by managers to direct, regulate, and restrain the actions of people so that the established goals of an enterprise may be achieved.”Revenue control is clearly an important goal of sales control, but it is not the only one.IntroductionOptimize number of salesMaximize profitControl revenueGoals of Sales ControlConsider how customers select restaurants.To be successful, a restaurant must meet a sufficient number of customer needs to appeal to a large enough market.Optimizing Number of Sales LocationMenu item differentiationPrice acceptabilityDécorPortion sizesProduct qualityService standardsMenu diversityOptimizing Number of Sales Other things being equal, customers will choose the most conveniently located restaurant.The greater the distance from a population center, the fewer the customers a restaurant can expect to attract from that center.Having a good location is usually necessary for volume business. Optimizing Sales -Location-Homogenous products or services are so similar to one another that customers do not have a preference and will purchase whichever costs less.Differentiated goods and services are sufficiently different that customers develop preferences for them.Unique menu items created for increasing sales volume are called signature items. Optimizing Sales-Menu Item Differentiation-If restaurants are alike in every way except menu prices, the one with the lowest prices will have the greatest sales volume.If menu items are price sensitive, a relationship exists between sales price and sales volume. Optimizing Sales -Price Acceptability-Décor differentiates one restaurant from another.Décor that appeals to a large segment of the targeted market should be selected.Evaluate the decors of local restaurants.Optimizing Sales -Décor-Portion sizes must be appropriate to a restaurant’s clientele.Large portions do not always attract the greatest number of customers.Various customer segments demand food products of various levels of quality.Optimizing Sales -Portion Sizes - and - Product Quality- Customers select restaurants offering a type and level of service that they find appropriate to the occasion.Managers must be able to adjust some aspects of service in order to increase customer satisfaction.Optimizing Sales-Service Standards-Most restaurants find it necessary to have a broad range of menu items.The number and range of menu items are governed by cost considerations, available equipment, and the culinary abilities of the kitchen staff.Optimizing Sales-Menu Diversity-Cost is usually the most significant factor in establishing sales prices. Restaurants with differentiated products have more flexibility to change menu prices than those with homogenous products.The proper sales price for an item is that which will produce an acceptable number of sales.Maximizing Profit-Pricing Products Properly-Matching competitors prices.Calculating prices from costs and cost percents. Adding contribution margins to portion costs.Maximizing Profits-Setting Menu Prices-The Menu is the primary sales tool.The five most important elements of menu preparation are;Layout and DesignVariety of Foods and PricesItem Location and ArrangementDescriptive LanguageKitchen Personnel and EquipmentMaximizing ProfitsThe Importance of the MenuMany managers hold daily meetings with servers just before opening time to review the menu.Training servers to suggest various menu items.Maximizing Profits-Sales Techniques-Documenting food salesUsing numbered checksChecking and verifying food salesRecording revenueControlling Revenue Help servers remember ordersGive itemized bills to guestsMaintain records for sales historyProve accuracy of cashiers’ workVerify the accuracy of prices chargedRecords for tax purposesControlling RevenueDocumenting Food Sales – Guest ChecksPadded UnpaddedSignature bookConcerns on using hand-written guest checksLegibilityAccuracyControlling RevenueUsing Numbered ChecksDupesRestaurant sales control sheetControlling Revenue-Checking and Verifying Food Sales -Recording Revenue© John Wiley & Sons, Inc. 2009