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Chapter 16 Monitoring Beverage Operations

This document provides an overview of principles for controlling food, beverage, and labor costs for bars and restaurants. It discusses several methods for monitoring bar operations and employees. It also outlines different approaches to tracking beverage costs, including the cost approach, liquid measure approach, and sales value approach. Formulas are provided for calculating beverage inventory value, cost of beverages consumed, and beverage cost percentage. The document also reviews items that affect beverage cost and how to calculate the sales value per bottle of liquor. Finally, it lists generally accepted inventory turnover rates for spirits and beers.

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Arifin Fu
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© Attribution Non-Commercial (BY-NC)
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124 views

Chapter 16 Monitoring Beverage Operations

This document provides an overview of principles for controlling food, beverage, and labor costs for bars and restaurants. It discusses several methods for monitoring bar operations and employees. It also outlines different approaches to tracking beverage costs, including the cost approach, liquid measure approach, and sales value approach. Formulas are provided for calculating beverage inventory value, cost of beverages consumed, and beverage cost percentage. The document also reviews items that affect beverage cost and how to calculate the sales value per bottle of liquor. Finally, it lists generally accepted inventory turnover rates for spirits and beers.

Uploaded by

Arifin Fu
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Principles of Food, Beverage, and Labor Cost Controls, Ninth Edition

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

1.

2.

The Cost Approach Cost percent methods Monthly calculations Cost calculations by category Daily calculations The Liquid Measure Approach Ounce-control method

3.

The Sales Value Approach Actual sales record method Average sales value method Standard deviation method

+ = = =

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

+/ =

Value of beverages issued to the bar Inventory differential Cost of beverages consumed

Beverage cost percentage = Beverage cost Beverage sales

Added to beverage cost


Subtracted from beverage cost


Food to bar (directs) Storeroom issues Mixers Managers drinks Special promotions

1.
2. 3.

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

1. 2.

Generally accepted turnover rates


Spirits1.5 Beers2.0

Average inventory = (Opening inventory + Closing inventory) 2 Turnover rate = Cost of beverages sold for a period Average inventory for the period

John Wiley & Sons, Inc. 2009

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