Managing Food and Beverage (F&B) Cost

Managing Food and Beverage (F&B) Cost

Introduction

In today's challenging business landscape, food and beverage profit margins face constant pressure due to rising costs and intensified competition. To ensure the financial viability of food and beverage operations, it is crucial to effectively manage costs and maximize income.

In this program, you will discover the comprehensive range of factors that impact the bottom line of food and beverage operations and gain the knowledge needed to navigate the complex environment of F&B and make informed decisions that drive profitability. Learn the intricacies of F&B cost control, from payroll and operating supplies to employee labor costs and overhead expenses. Master proven techniques for optimizing purchasing, inventory management, menu engineering, and pricing strategies.

Explore how to effectively manage overhead departmental expenses such as utility bills, taxes, insurance, rent, and marketing expenditures. By understanding the broader financial implications and implementing efficient cost-control measures, you can safeguard the financial health of your food and beverage operation.

Whether you are a restaurant owner, manager, or aspiring professional in the hospitality industry, this program offers invaluable insights and practical tools to manage food and beverage costs effectively and secure a competitive edge in the dynamic world of Food & Beverage.

Outcome

By the end of the program, participants will be able to:

- Understanding of Cost Implications: Learn how costs flow and identify areas where cost control measures can have the most significant impact on financial performance
- Component Analysis for Cost Optimization: Analyze each component of costs within F&B operations and implement cost-saving measures effectively
- Strategic Pricing Based on Actual Costs: Learn how to align pricing with actual costs and set prices to cover expenses to generate desired margins
- Menu Analysis for Enhanced Profitability: Acquire the skills to analyze menus and optimize resource allocation to enhance overall financial performance
- Focus Areas for Effective Cost Management: Gain insights into key challenges and opportunities to effectively manage costs and improve financial outcomes

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No	Topic	Topic Description
1	The Purchasing processes	What is purchasing? Product specification Format Type of purchasing Purchasing Methods
2	The Receiving control	The control Points Inventory management ITR Receiving Facilities
3	Storing and Issuing the product	Storing General Procedures Security Concern Maintaining quality during storage Inventory control The requisition procedures Establishing par stocks
4	Standard recipe Calculation	Flow in collecting and establishing standard recipes Recipe Costing Calculation Calculation on selling price
5	Calculating actual Food and Beverage Cost	Monthly Calculation The Basic calculation The information source Calculating the inventory Value Adjusting the cost of goods sold Component of daily food cost Calculating the actual daily beverage cost Procedures for calculating the beverage inventory
6	Labor Cost	The new normal labor costs calculation Labor costs % vs sales New scheduling New Labor requirement

Expert

R. Senthil Ilangovan CHA, FMP, MBA

R. Senthil Ilangovan FMP, MBA, or more commonly known as Govan, is a respected trainer and consultant in the hospitality and corporate industry. He has developed many programmes and manuals for hotels and restaurants all over Malaysia and ASEAN countries. He also provides consultancy to newly opened establishments and those that require operational and managerial expertise. His career in the hospitality industry has spanned 31 years. He started his career in Hilton, Melia Sole KL and diverse into many other hospitality related businesses such as Golf Club, Resort Hotels, and Port Catering Business as well. He has also served as a pre-opening team for several hotels, including Amber Court, Villa Genting D’Genting Resort in Genting Highlands, and many other hotels. His responsibility is more to planning the layout of the hotel operations, kitchen, restaurant and other support facilities. Govan is a Foodservice Manager Professional (FMP) holder, which is the highest award in hospitality and F&B industry. He is a double Masters holder in Business Administration from Canada and Australia, Diploma and Higher Diploma in Hospitality and Tourism Management from Toulouse, France. His vast experience local and internationally make him a better hospitality person and he is a person that likes to share the latest and different ways in managing the hotel operations or managing businesses. His training and development experience was established during his five-year tenure at Taylor's College, School of Hospitality and Tourism (TCHT). As Lecturer in Charge, where he drafted the Department’s course structure, planned of the manpower and ensured the smooth running of the fine dining restaurants and corporate training as well. Govan also attended E-Cornell Hotel Revenue Management and Restaurant Revenue Management program in Singapore as a part of enhancing his knowledge and application in this program. He always wanted to share his thoughts in making more revenue to the industry players. This year Govan attended HSMAI Revenue Management programme is Singapore to update on the latest development in Hotel Revenue Management. Govan’s training is an application training where the industry professionals can apply immediately when they return to the hotel. Govan’s area of specialization includes Hotel Revenue Management, F&B Management, F&B Revenue Management, Professional Selling Techniques, Controlling Cost, Managing People, Sales & Negotiation, Supervisory Skills Development, Train the Trainer programme and many more. He also lectures in Hotel Planning and design for Masters in Hospitality students. He is also trained associated from Hilton Hotels, Shangri-La, Sushi Tei Jakarta, Paradise Island Resort Maldives, Sun Island Resort, Vinpearl Group Vietnam, Seychelles Berjaya Beau Villon and some other ministries in Malaysia.