CONTROLLING FOOD SALES

Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved

CONTROLLING FOOD SALES


Introduction

• In Chapter 2, Control was defined as “a process used by managers to direct, regulate, and restrain the actions of people so that the established goals of an enterprise may be achieved.”

• Revenue control is clearly an important goal of sales control, but it is not the only one.


Goals of Sales Control

• Optimize number of sales

• Maximize profit

• Control revenue


Optimizing Number of Sales

• Consider how customers select restaurants.

• To be successful, a restaurant must meet a sufficient number of customer needs to appeal to a large enough market.


Optimizing Number of Sales

• Location• Menu item differentiation• Price acceptability• Décor• Portion sizes• Product quality• Service standards• Menu diversity


Optimizing Sales-Location-

• Other things being equal, customers will choose the most conveniently located restaurant.

• The greater the distance from a population center, the fewer the customers a restaurant can expect to attract from that center.

• Having a good location is usually necessary for volume business.


Optimizing Sales-Menu Item

Differentiation-• Homogenous products or services are so similar to one another that customers do not have a preference and will purchase whichever costs less.

• Differentiated goods and services are sufficiently different that customers develop preferences for them.

• Unique menu items created for increasing sales volume are called signature items.


Optimizing Sales -Price Acceptability-

• If restaurants are alike in every way except menu prices, the one with the lowest prices will have the greatest sales volume.

• If menu items are price sensitive, a relationship exists between sales price and sales volume.


Optimizing Sales-Décor-

• Décor differentiates one restaurant from another.

• Décor that appeals to a large segment of the targeted market should be selected.

• Evaluate the decors of local restaurants.


Optimizing Sales -Portion Sizes-

and-Product Quality-

• Portion sizes must be appropriate to a restaurant’s clientele.

• Large portions do not always attract the greatest number of customers.

• Various customer segments demand food products of various levels of quality.


Optimizing Sales-Service Standards-

• Customers select restaurants offering a type and level of service that they find appropriate to the occasion.

• Managers must be able to adjust some aspects of service in order to increase customer satisfaction.


Optimizing Sales-Menu Diversity-

• Most restaurants find it necessary to have a broad range of menu items.

• The number and range of menu items are governed by cost considerations, available equipment, and the culinary abilities of the kitchen staff.


Maximizing Profit-Pricing Products Properly-

• Cost is usually the most significant factor in establishing sales prices.

• Restaurants with differentiated products have more flexibility to change menu prices than those with homogenous products.

• The proper sales price for an item is that which will produce an acceptable number of sales.


Maximizing Profits-Setting Menu Prices-

1. Matching competitors prices.

2. Calculating prices from costs and cost percents.

3. Adding contribution margins to portion costs.


Maximizing ProfitsThe Importance of the Menu

• The Menu is the primary sales tool.

• The five most important elements of menu preparation are;– Layout and Design– Variety of Foods and Prices– Item Location and Arrangement– Descriptive Language– Kitchen Personnel and Equipment


Maximizing Profits-Sales Techniques-

• Many managers hold daily meetings with servers just before opening time to review the menu.

• Training servers to suggest various menu items.


Controlling Revenue

• Documenting food sales

• Using numbered checks

• Checking and verifying food sales

• Recording revenue


Controlling RevenueDocumenting Food Sales –

Guest Checks• Help servers remember orders

• Give itemized bills to guests

• Maintain records for sales history

• Prove accuracy of cashiers’ work

• Verify the accuracy of prices charged

• Records for tax purposes


Controlling RevenueUsing Numbered Checks

• Padded

• Unpadded

• Signature book

• Concerns on using hand-written guest checks– Legibility– Accuracy


Controlling Revenue-Checking and Verifying Food

Sales -Recording Revenue

• “Food Checkers”

• Dupes

• Restaurant sales control sheet

Documents

CONTROLLING FOOD SALES