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- Total cost (a x c)
- Unit potential sales: the potential revenue of the item if sold at the full selling price (d)
- Total potential sales (a x d)
3. The bartender at the banquet bar must prepare the drinks for each banquet according to the Banquet Function Sheet. The prepared beverages must be recorded under the lssued column of the Banquet Requistion and
Return Report, except for small banquets when order vouchers similar to those of a restaurant are used. Lf a permanent banquet bar does not exist, beverage should be issued directly from the main store and returned to the main store at the end of the function.
4. Once the banquet has finished, the remaining beverages must be checked, the net consumed amount and actual
Sales calculated. The Bartender must sign the issuing and returning of the beverages. The person in charge of
The banquet bar is responsible for preparing the beverage sales records and an invoice will be prepared and posted by the Cashier accordingly.
5. The Cost Controller will review the actual sales calculation of the report sent from the banquet bar, enter the cost of each item and calculate the total cost as well as the potential sales amount. The difference between the calculated potential sales amount and the actual sales is used to adjust the banquet bar’s potential sales amount. The cost is compared against the banquet’s potential cost. For flat rate banquets, it is used as reference information when establishing the future selling price.
6. Lf there is a large difference between the potential beverage sales and the actual beverage sales, the cause for the difference should be investigated.
7. Unlike restaurants, banquets do not necessarily have any trends and are rather affected by the type of events such as wedding receptions and cocktail parties. Accordingly, monthly banquet target beverage cost should be determined by referring to the previous year’s actual beverage cost results and the trends indicated by the menu sales analysis.
Ojective
To achieve an appropriate profit margin in banquets and ensure the operation is standardized and with minimum waste.
Policy
1. A Function Sheet must e prepared for all banquets, stating the date and hour, name of the banquet room, number of guests, price charged, detailed menu and any other relevant details.
2. The potential food cost for the banquet must be calculated in advance, to ensure that appropriate Sales pricing is used.
3. Potential food cost and actual food cost must be compared and any significant variance should be formally explained.
Procedure
1. The contents of the menu are decided with customers with a prearranged standard menu for breakfast, lunch, dinner, buffet, and wedding receptions. A standard recipe must be prepared in the same manner as previously detailed. The potential food cost for each menu must be calculated and attached to the banquet sheets
2. For special orders outside the standard menu, the special banquet menu should be presented to the Cost Controller well before the banquet is held in order to calculate the food cost in advance.
3. The Cost Controller must then calculate the food cost for one serving, of the new banquet menu. If special dishes are ordered which do not already have a prepared standard recipe, the Executive Chef must prepare the standard recipe to calculate the food cost. If the cost calculation cannot be performed because the standard recipe is not available, a dish with similar main materials should be used as reference to calculate the cost.
4. If the food cost for one serving is high in comparison with the sales price, the Banquet Manger and the Food and Beverage manager must be notified by writing. In order to improve the cost ratio, the materials used must be changed to lower the cost, and/or the selling price increased. If the menu or the selling prices are adjusted, a revised Function Sheet must be prepared and submitted to the Cost Controller.
5. When the banquet is finished and the sales recorded, the cost Controller will apply the cost ratio which has been calculated for each banquet in advance to the respective sales, and calculate the total food cos for the banquet.
6. If there is a difference between the guaranteed number of guests (prepared number of meals) and the actual number of guests, the Banquet Manager must explain the situation. The bottles to be used for cocktails and for straight drinks should be assigned separate potential sales values or alternatively to adjust the potential sales value in advance.
7. The food sales and food cost are accumulated for all banquets during the month, and the potential food cost and the potential cost ratio are calculated for the same period. When the potential food cost and actual food cost are compared, the difference should be within 2 percent.
8. Any significant difference between the potential food cost and the actual food cost as a result of the analysis should be investigated and explained. The explanations may include:
- Sales discounts or adjustments
- Unrecorded sales
- Losses arising from the cooking process
- Standardized procedures from material purchase to cooking are not followed
9. Unlike a restaurant, banquets do not necessarily have trends and are affected by seasonal events such as wedding seasons, convention seasons, and Christmas parties, with customers able to choose from a wide variety of menus. Accordingly, monthly banquet target food cost should be determined by referring to the previous year’s actual food cost results and the
potential food cost of each menu.