The 7 Principles Of Food And Beverage Yield Management To Reach Profitability
By Jefrey Walter, Dynamic leader|Food and Beverage & Culinary Management|Revenue Optimization
It is very common that hoteliers and food & beverage professionals tend to generate revenue eventually. However, there is an underlying procedure to generate profit from the revenue obtained. This fact has a great emphasis on the ability of the team and the organization to carefully analyze the strategies of yield management. These strategies not only allow for the cross-pollination of ideas but also helps to reach profitability.
1. Modify the strategies:
Perhaps the most relevant and effective solution would be to modify your food and beverage strategies. It is time-consuming and risky, but if properly done the results are boundless. The most essential strategies would be the training of kitchen staff and f&b service staff and portion control. In order to modify the strategies, it is imperative to understand customer behavior.
2. An open eye
Despite effective training, The staff can be very elusive during the busy operation, so they might not focus on these strategies to control the waste or yield management. The food and beverage managers and executives should notice everything which happens and advise the staff on the spot about the importance of control on wastage and portion control. For example: If a bartender has a lot of guests during their busy operation, there is a risk wherein the bartender might feel befuddled and use a 60ml measurement instead of 30ml which results in a major loss. Similarly during the busy operation, if the chefs don't control the portion of french fries it will lead to a major loss too. There might be a fair amount of revenue generated that attracts employees and employers but they will never be able to make enough profit without a proper yield management system.
3. Ask your Team:
If you find it challenging to build those strategies, communicate with your team effectively, and hold many briefing and interactive sessions to discuss those. As a leader, it is your utter responsibility to communicate with your team and build new strategies. Listen to your subordinates and explore a new range of ideas, carefully analyze those to make a final report, and build the strategies now.
4. Training chefs and food and beverage service team:
When it comes to operational activity, both chefs and f&b service staff play an essential role to control the portioning. Arguing and shouting at your staff will only make you lose your energy and waste your time. Instead, focus on training programs, to coach, to make them understand the value, provide incentives, and appreciate their efforts at all times. When they tend to make the same mistake during a busy operation, advise on the spot, and correct them.
5. Consistency is the Key:
To carefully analyze the plate cost and portion, it is necessary to understand the customer's level of food and beverage intake. Take notes and make a report of the wastage, and advise the staff to portion properly, and to be attentive to detail. Different types of customers have their own perspective about the size of a food or a beverage. However, it is very important that the customers get the same quantity and quality of food and beverage when they visit next time wherein consistency act as a key to satisfy the customers. There is a possibility that your vendor might supply a wide range of products wherein there is an expired or a blemish product. This will not only spoil that particular item but also other items that are near to it in terms of food or a perishable item. Effective negotiation with the vendor is a top priority, and your staff should make note of minor issues and act in accordance with it in order to avoid food poisoning or loss in quality which leads to a loss in consistency.
6. Visit F&B Outlets:
One of the best things you can do is to take your team and visit high end and successful restaurants and f&b outlets. The learning objective should be the strategies of cost control and yield management. I suggest you visit Wagamama or a successful fast-food chain or a financially successful and popular restaurant, and carefully note their method of cost control through proper portioning, you will be surprised. The level of accuracy and discipline helps them to reach their objective.
7. Focus on your equipment:
The type of equipment that you use is your visible thief. Focus on your equipment and to use it effectively. If you fill your portioning bag with 100ml of sauce instead of a 90ml, it will hinder your profit. Similarly, if your weighing scale isn't showing an accurate measurement, it will impact the entire operational performance. It will not show you an immediate result but results in a long-term impact.
Modifying the strategies should be applied only to the food and beverage businesses that do not generate enough profit. Considering all these above 7 principles in terms of a food and beverage operational activity, it effectively helps to generate profit from the revenue itself. In order to generate revenue effectively, you can refer to my article about revenue optimization for a restaurant to be financially and economically successful https://www.hospitalitynet.org/opinion/4100876.html
PS: This article reflects my personal opinion for a professional food and beverage workforce.