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Chapter 16 Monitoring Beverage Operations. Principles of Food, Beverage, and Labor Cost Controls, Ninth Edition. Ways to Monitor Beverage Production . Management observes bar operations Designated employee observes others working at the bar and reports back to management
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Chapter 16Monitoring Beverage Operations Principles of Food, Beverage, and Labor Cost Controls, Ninth Edition
Ways to Monitor Beverage Production • Management observes bar operations • Designated employee observes others working at the bar and reports back to management • Individuals unknown to the bartender visit the bar, observe employees, and report back to management • Closed-circuit television systems permit observation from some remote location
Approaches for Monitoring Beverage Operations • The Sales Value Approach • Actual sales record method • Average sales value method • Standard deviation method • The Cost Approach • Cost percent methods • Monthly calculations • Cost calculations by category • Daily calculations • The Liquid Measure Approach • Ounce-control method
Cost Percent Formulas and Equations Opening beverage inventory + Beverage purchases this month = Total available for sale this month – Closing inventory this month = Value of beverages issued to the bar Bar inventory value at the beginning of the month – Bar inventory value at the end of the month = Bar inventory differential
Cost Percent Formulas and Equations Value of beverages issued to the bar +/– Inventory differential = Cost of beverages consumed Beverage cost percentage = Beverage cost ÷ Beverage sales
Adjustments to Beverage Cost Added to beverage cost • Food to bar (directs) • Storeroom issues • Mixers Subtracted from beverage cost • Managers’ drinks • Special promotions
How to Calculate Bottle Sales Values • Determine bottle size and drink size. • Calculate drinks per bottle. • Multiply drinks per bottle by drink price to get sales value per bottle. Example Bottle size: 1 liter; drink size: 1 ounce 33.8 drinks per bottle 33.8 × $3.00 = $101.40
Inventory Turnover • Average inventory = (Opening inventory + Closing inventory) ÷ 2 • Turnover rate = Cost of beverages sold for a period ÷ Average inventory for the period Generally accepted turnover rates Spirits—1.5 Beers—2.0 © John Wiley & Sons, Inc. 2009
