Revenue control

Revenue Control

Monday, October 29, 2012 BAC-5132 Food and Beverage Management-II-Menu engineering : Revenue
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Control

Recap of CVP Analysis
 What is Variable rate.
 What is contribution rate
 What is meant by contribution margin in
relation to the food and beverage
business.
 What is break even in # of Guests.
 What is break even monetary value.
 Define the graph in BEP.
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Control

Scope
 Standard Revenue and Guest Check
Control Systems
1. Manual guest Check System
2. Automated Guest Check System
 Collecting Revenue
1. Server Banking System
2. Cashier Banking System
3. Revenue Reports

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Control

Scope
 Assessing Standard Revenue –
Beverage Operations
1. Automated Beverage Systems

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Control

KCM of the session
 To understand Revenue Control Procedures
typical of Food & Beverage Operations with
Manual Guest Check Systems.
 To understand POS (Automated Guest Billing
Systems) and how they simplify Guest Check
Control Systems.
 To differentiate between Server Banking and
Cashier Banking Systems.
 Explain how Managers use Daily Cashier
Reports as a Revenue Control Tool.
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Control

KCM of the session
 To understand the Use of POS Reports as
Revenue Control Tools.
 To comprehend how Managers in Non –
Automated Operations Control Beverage
Revenue and to Identify the Advantages
and Disadvantages of Automated
Beverage Control Systems.

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Control

Introduction
 The Last phase of the Control Cycle is
the collection of Revenue for Products
and Services offered to the Guests of the
Property.
 Planning for and Controlling Revenue is
just as important as properly managing
Costs.

Slide 7 / 53
Control

Introduction (cont’d…)
 The first step in designing a Control
System is to develop a Standard.
 Development of a Revenue Standard will
then help in comparing the Standard
Revenue with the Actual Revenue.

 How should a F&B Operation define
Revenue Standards?
Slide 8 / 53
Control

Introduction (cont’d…)
 Defining Revenue Standards
1. Method 1: Based Upon Guest Checks
The Standard – Amount of Revenue an
Operation expects to collect from it’s
Operation – is the sum total of Guest
Checks over a Meal Period.
2. Method 2: POS Summary
Unit Sales information entered into the POS
System can be summarized at the end of
the Meal Period and the Sales Figures can
be Multiplied with the Menu Items Costs to
yield Revenue Expectations or Standards.
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Control

Non – Automated System
Serve
Serve
rr
Guest A
Guest A
$$ 25.00
25.00
Manual Data Entry

POS
Guest B
Guest B
$$ 30.00
30.00

All Guest Checks
are collected End of
End of
at end of Meal Period Meal
Meal
Guest C & Period
Guest C Period
$$ Sales
Summed Sales
100.00 Summary
100.00 Summary

Guest D
Guest D
$$ 75.00
75.00 Standard Revenue

Automated System

Standard Revenue and Guest
Check Control Systems
 In some Food & Beverage Operations, a
Guest check system is at the heart of
Revenue Control.
 The Standard (Expected) amount of
Revenue is represented by the total of all
amounts recorded on Individual Guest
Checks for a Meal Period (Periods) after
all Checks have been Accounted for.

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Control

Guest Check Control Systems – Non –
Automated Operations / Manual System

 A fundamental Revenue Control Procedure
requires that server neatly write all F&B Orders
on Guest Checks.

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Control

Checklist for Preparing a Check Manually:
1. Servers must use pens and not pencils
2. All items ordered by the Guest must be
neatly written on the check
3. Mistakes must be crossed and not
erased. There should be no overwriting.
4. All Corrections must bear the signature /
initial of the respective Supervisor.
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Control

Check List for Check Writing

Use Pens Only

No Over Legibly
Writing Writing

Guest Check

Any Correction
No Erasing
To be
Only
Authorized by
Strike Through
Supervisor

 Initializing by the Supervisor:
Before Initializing, for a Correction made on the Check;
the Supervisor must check with the Kitchen / Bar if the
menu item has been prepared or not.
 Dealing with Void Items:
Sometimes, the Guest might just change his mind in
the middle of an order or a situation may come up
which might need his urgent attention. In such
cases, he may cancel the Order. Such items have to
be Voided and the Supervisor’s authorization must
be obtained.

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Control

Write Off the Cost Inform Kitchen Not Item Deletion
To Process NO / Void
Order

Seek a
Logical
Explanation
Check whether
Item has been
Prepared by the
Bar / Kitchen

YES
If Guest Cancelled If mistake of the
The Item Server

Evaluate the Situation Debit the Server
Write Off the Cost Tips / Salary
Dealing with Corrections on Guest Checks

 The Workflow in a Manual System
 Before F&B Items are produced, Servers must
provide the appropriate Production Staff with the
Requisition Slip – K.O.T. / B.O.T.
 The Server will list all items he requires for a Table
on a K.O.T. / B.O.T. along with his ID, Table No., No.
of Pax & Time.
 Operations with Manual Guest Check Systems will
use a Duplicate guest Check System. The Server will
turn in the Duplicate Copy to the Kitchen and the
first copy will be presented to the Guest after
Tallying.
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Control

 The Workflow in a Manual System (Cont’d…)

 Requisition Slips and Duplicate Checks are
useful for routine Guest Check Audit Functions.

 At the end of the Meal Period, the Manager
matches the Requisition Slips (KOT’s or BOT’s)
or Duplicate Guest Check copies with the
corresponding guest Checks for which Revenue
has been collected.

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Control

 The Workflow in a Manual System
(Cont’d…)

 Such Audits identify Frauds and Mistakes
made by servers in Pricing. These must
be brought to the attention of the Servers
and Management makes it known to the
Staff that it takes Revenue Control
Seriously
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Control

 Guest Check Control
 The Guest checks must be unique to the Property, such
that they cannot be easily duplicated. (Generally with a
Logo of the Operation).
 Checks must be stored safely.
 Their Issue to the Servers must be controlled.
 All Checks must be Accounted for at the end of a Shift.
Used Checks must be deposited along with Revenue
Collected against it and unused Checks must be
returned or Transferred to another Server in the following
Shift in the presence of the Manager.
Slide 20 / 53
Control

Guest Check Control Procedures

Store
Securely

Issued to Must be
Server Accounted
At Beginning For at
of Shit Shift End
Guest
Check

Hard to
Serial No.
Duplicate
Control
(LOGO)

The Revenue Control Flow Chart –
Manual System
Checks All Checks Compared
Checks What was Produced &
Issued to Against KOTs & BOTs
Issued to What was Served?
Servers
Servers
at the
at the
Beginnin
Beginnin
gg All Checks & Revenue Guest was Billed
Of Shift
Of Shift Collected with KOTs & Correctly?
BOTs

Standard Revenue
Guest Orders Check and Revenue
Established
Entered onto KOTs Deposited
& BOTs
(Triplicate)
KOT -Kitchen

BOT - Bar

Check Presented to
Guest Check is made
Guest & Revenue
As per KOT / BOT
Collected

Orders are Served
Guest Orders Tallied with Physical
22
To Respective
Are Processed Cash Count
Guests

Guest Check Log
Ticket Type Guest Check No.
Date Shift Server Signature / Remarks
Food Beverage Start No. End No.
01-Sep A.M. X Jhonson 12001 12100
01-Sep A.M. X Samuel 14001 14100
01-Sep A.M. X Roby 12101 12200

01-Sep A.M. X Joseph 12201 12300
01-Sep A.M. X Joshy 14101 14200

Guest Check Control Systems –
Automated System
 Some automated systems use Pre-
Printed, Serially Numbered checks
similar to those used by Operations with
Manual Check Systems.
 Before entering the Order, the Server
must open a Guest Check within the
System.
 This is usually accomplished by inputting
the Server’s ID No. and the Guest Check
Serial No.
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Control

Automated System
 Once the System has recognized the Server and
opened the Guest Check, the Items are entered
and then relayed to more remote printers
located at appropriate Production Areas.
 Pre-Check Terminals are also equipped with
Guest Check Printers.
 As Orders are relayed to Production Areas, the
same items with their Selling Prices are printed
on the Server’s Guest Check.

Slide 25 / 53
Control

The Revenue Control Flow Chart –
Checks
Checks
Automated System
Issued
Issued Guest Places
to
to An Order
Servers
Servers
Guest Check Opened in Revenue Report is Generated
POS by Server ID By Multiplying Menu Item Analysis
with Item S.P.
(Standard Revenue)

Revenue Must Tally

POS
Total Revenue
Collected
Guest Order (Actual)
Entered into POS
Sum Total of Revenue
Collected for a Meal Period
Printed with Item Relayed to Remote Adding Individual
& Selling Prices Printer in Production Guest Checks
On Server Check Areas

Presented to Guest
For Payment &
Revenue Collected

Guest Check Control Systems – Automated System
Terminal
of
Origin
Total Server
Amount ID No.

Guest Check
Taxes Serial no.
Guest
Check

Total Bill Time of
Amount Origin

Prices
Items
Of
Ordered
Items

Automated System
 Modern systems eliminate the Guest Check
altogether.
 These systems maintain only an electronic File for
each guest Check.
 A thin narrow Receipt like Guest Check can be Printed
at any time during Service. However, in most cases it
is usually Printed after the Guest Meal, when the
Server presents it to the Guest for Settlement.
 Since no Paper Forms are used, the Table No. often
becomes the Tracking Identifier for the Order. In case
of Multiple Checks per Table, the Seat No. becomes
the Tracking Identifier.
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Control

Automated System
 POS Technology Guest Check control functions
eliminate the Need for most of the time
Consuming Audit Procedures.
 When items must be Voided, after they have
been entered into the System, a Supervisor with
a Special ID can access the System and delete
the appropriate items.
 At the end of the Meal Period, the System prints
a Report showing all Voided Items along with the
ID of the Server Responsible and the Supervisor
who Voided the Items.
Slide 29 / 53
Control

Automated System
 It is very essential for the System to differentiate
between Voided Items and Items Returned.
 An item that has been Voided after it has been
prepared is termed “Returned”.
 “Returns” use up your Inventory and generate no
Revenue.
 Items Returned must be included in Inventory
Usage, whereas Voided Items are not .

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Control

Server Fraud – Manual System
Balance is Pocketed and
Distributed
Server A

Check Amount is Dropped
in the
Cash Box
Takes a
Guest Order

Server Raises a Void Full Revenue is
BOT/ KOT and Drops Collected
Barman Processes
BOT

it in
Makes KOT & BOT Order as per KOT Box

KOT Gives the Guest a Rough Bill
For the other two dishes not charged
On the Main Bill
Chef Processes
Order as per KOT

Server does not charge
The Guest for a Menu Item and
31
Order is Collected & Server Prepares Bill
Beverage on the Main Bill
Served to Guest For Guest

Server Fraud Prevention – Automated Systems
Balance is Pocketed and
Distributed
Server A

Check Amount is Dropped
in the
Cash Box
Takes a
Guest Order

Server Raises a Void Full Revenue is
Barman prepares Order BOT/ KOT and Drops Collected
Opens Guest As per Remote Printed it in
Bar

Check in POS Order Box

Kitchen Gives the Guest a Rough Bill
For the other two dishes not charged
On the Main Bill
Chef Prepares Orders
As per Remote Printed
Order

Server does not charge
The Guest for a Menu Item and
32
Order is Collected & Bill is Automatically Beverage on the Main Bill
Served to Guest Generated

Automated System
 At any moment in time, the Supervisors can
access the POS System from any terminal and
check the status of any open Transaction. This
helps reduce Server Fraud, Guest Check and
Revenue Control.

 The Status of the Guest Transaction changes
from Open to Closed when the Payment is
Received from the Guest and Recorded in the
System.

Slide 33 / 53
Control

Collecting Revenue
 Up until now we have been discussing
procedures to assess the amount of
Standard Revenue.
 The next step in Revenue Control is to
develop and implement Revenue Control
Procedures to ensure that the Actual
Revenue Collected corresponds to the
Revenue Standards Established.

Slide 34 / 53
Control

Collecting Revenue
 There are essentially 2 Types of
Collection Systems:
1. Server Banking System
2. Cashier Banking System

Slide 35 / 53
Control

Collecting Revenue – Server Banking

 With this system, the Servers / Bartenders
use their own Banks of money to collect
payments from Guests and retain the
Revenue until the end of their Shifts.
 In some Operations, a locking Cash Box is
provided for each Server to store collected
Revenue & Credit Card vouchers.

Slide 36 / 53
Control


 Manual Scenario
All checks assigned to each Server are
totaled by the Cashier / Manager. This
results in the “Total Amount” collected by
the Server.
Totals of Credit Card Vouchers, Room
Charges, City Ledger Settlements are
then deducted from the “Total Amount”.

Slide 37 / 53
Control


 Manual Scenario
The Balance Amount is the Amount of
Cash to be collected from the Server. The
remaining amount with the Server would
represent his Opening Float (Bank) plus
Cash Tips earned.
 This is a very time consuming and tedious
process.

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Control

 Automated Scenario
When the F&B Operations are automated, then
the POS System will be able to generate a
Report at the end of the meal period for every
server with the amount of Revenue accredited to
him.
The Report generated also tells you the amount
under each mode of settlement.
In such a scenario, it becomes fairly simple to
identify the Cash Revenue & collect the same
from the Server.

Server Sales Report
Server Sales Report By Category
Bob - 07/09/2005 Gross Sales 134.4
1530 Hours Page 1
Item Name Net Sales Promos Taxes Gross Sales
Salads 13.90 0.00 0.70 14.60
Soups 5.50 0.00 0.28 5.78
Chips and Fries 9.90 0.00 0.50 10.40
Dinners 25.00 0.00 1.25 26.25
Desserts 10.00 0.00 0.50 10.50
Burgers 8.75 0.00 0.44 9.19
Sanwiches 6.50 0.00 0.33 6.83
Pizza 7.95 0.00 0.40 8.35
Kid's Meals 3.00 0.00 0.15 3.15
Beers 20.00 0.00 1.00 21.00
Wine 17.50 0.00 0.88 18.38
Totals 128.00 0.00 6.40 134.40

Number of Guest
Lunch 13
Dinner 0
After Hours 0
Total Guest 13
Number of Checks
Lunch 6
Dinner 0
After Hours 0
Total Checks 6

Server Banking System
Transaction Analysis
Total Revenue Revenue in Cash
$375 $125
After 1 Settlement
Server A Server Bank Balance
$ 575

At End of Shift
All Checks are
$ 630 - $ 125 =

Totaled
$ 505 – Cash Tip = After 2 Settlement
$ 500 Server Bank Balance
Begins Shift with $ 630
Float of $ 500
Server
Transaction After 3 Settlement
s During Server Bank Balance
Shift $ 630

Check
Check Check
Check Check
Check Check
Check
Settled Settled Settled Settled After 4 Settlement
Settled Settled Settled Settled Server Bank Balance
by
by by Cash
by Cash by CC
by CC by
by
Cash $$ $$50 $$100 Room $ 630
Cash 50 100 Room
75
75 ++Cash
Cash Accoun
Accoun
Tip $$55
Tip t t$$150
150

Collecting Revenue – Cashier Banking
 With the Cashier Banking System, the Guest
pays the Cashier; the Bartender or the Server
( who later pay the Cashier).
 Manual Scenario
Upon receiving a Check for settlement, the
Cashier will key in each item on the check into
the Register.
The Register will tally each item and imprint the
total on the check for verification with the
Server’s Handwritten Total.
The Cashier will then retain the money and the
Check.
Slide 42 / 53
Control

Collecting Revenue – Cashier Banking
 Automated Scenario
With most electronic POS Systems, the
Cashier does not have to key each item from
every Guest Check into the Register. The
Cashier’s Terminal simply accesses the
Transaction Number opened by the Server
and the Cashier closes it by collecting and
recording the Revenue.
At the end of the Shift, the Cashier’s Cash
Drawer and supporting documents are
accounted for.

Assessing Standard Revenue:
Beverage Operations
Just as in the Control of Food
Revenue, the expected
Revenue from Beverage Sales
is based on the total number of
Items actually Sold.

Slide 44 / 53
Control

Beverage Revenue – Non Automated Properties

Guest Orders
Actual Revenue is
Beverage Standard Revenue
Compared

Bartender Prepares
A Manual Check All Checks are
Totaled at Shift
End

Check is Guest is
Placed in Bartender Processes Ready to Pay
A Slot Check is
The Order & Serves
Corresponding Deposited in a
To Guest Table No. Box

Check is Rung into the
Guest Repeats
Register and
Order
Funds Deposited

Assessing Standard Revenue:
Beverage Operations
 An obvious disadvantage of the above
method is that it is very time consuming.
 It is also not practical to separate the
Preparation, Service and Collection
Activities. Bartenders generally take
Orders, Prepare and Serve the Drink and
also collect money for the same.
 The chances of Theft are far greater in this
case.
Slide 46 / 53
Control

Verification of Standard Revenue
 We could use the Shift Wise Inventory
Procedure to determine the Standard
Revenue due from the Beverage
Operation. The idea is to determine the
Sale of the Operation during a Shift which
multiplied by the Item S.P., would give
Standard Revenue against which Actual
would be compared.

Slide 47 / 53
Control

Automated Beverage Systems
 In Automated Operations, the Task of
the Management in Controlling Beverage
Revenue is simplified. It is fairly simple to
establish Standard Revenues and
Portion Control is also enforced by the
System.

Slide 49 / 53
Control

 Most Automated systems can:
1. Dispense Drinks according to the
Operations’ Standards
2. Count the Number of Drinks Poured
3. Asses Standard Revenue for Beverage
Sales
4. Provide Timely Management Reports

Slide 50 / 53
Control

 Depicts the POS System, a Sample POS
Screen and Automated Dispensing Unit
Remotely Located with a Drink Dispensing
Gun at the Bar Counter.

(Refer Bar & Beverage Management –
Tanke – Pg. 280, 286,288)

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Control

References
 Food & Beverage Controls –
Jack D. Ninemeier
(American Hotel & Lodging Association)

 Bar & Beverage Management –
Kotschevar & Tanke
(American Hotel & Lodging Association)

Slide 52 / 53
Control

Questions
&
Comments
Slide 53 / 53
Control

Revenue control

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