Category Archives: Food & Beverage

Ask TrueGuest: Bartender Selling Techniques

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Dear TrueGuest,

I am a food and beverage manager at a hotel with two bars.  Can you tell me some ways that we can increase our revenues?  We are obviously a little bit slower lately, but is there anything that we can do to help?

The selling area of a bartender’s service is always overlooked. These selling standards are extremely important to generating higher revenues. Bartenders can come across as uncaring and unfriendly if they just approach and ask guests, “What can I get for you?” They also will not sell much more than the minimum guest order. Most hotel bars are not like bars or nightclubs that stand alone. People usually expect more from a hotel bar. The service of a bartender should be similar to that provided by servers to a table of guests that are eating. There are many selling standards that should be in place for each time a guest arrives at the bar. This includes practices such as offering your drink menu to guests whether they know what they want or not, providing a food menu, suggesting any specialty drinks, offering more beverages, and offering bar snacks. Each of these practices has its own effect and benefit on your bartender’s guest service as well as revenues. Here is a breakdown.

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Cutting Payroll in Your Hotel Restaurants – Busser Edition

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If you are like many hotels, you are looking for ways to reduce your costs in your restaurants to compensate for the lower revenues.  In this first cutting payroll edition, we are going to discuss how to cut the busser (bussperson, busboy) position.  Many restaurant chains across the country have now eliminated the busser position.  Take a look at this article describing how chains such as T.G.I. Friday’s have eliminated the position.

First, a brief overview of how we see the bussperson position. Bussers are the key to a restaurant’s cleanliness.  They are relatively inexpensive to have on the floor during busy times.  However, they can really hamper good guest service.  Restaurants tend to use bussers to help the servers serve guests by doing things such as offering beverages and pre-bussing.  The problem is that guests cannot tell the difference between a server and a busser.  It does not matter if their uniforms are different.  When an employee approaches a guest’s table and offers a beverage, the guest expects that person is going to serve them.  Unfortunately, they do not always speak English and are not trained to properly serve the guest.  Many guest’s questions are answered with a blank stare or with, “I’ll get the server”.  Servers should serve.  They should be the first to greet the guest when they are seated.  They should take the drink orders and deliver them.  They should pre-buss and should deliver the checks.  A busser should never go to a guest’s table while there is a guest present.  If a busser is doing any of these tasks out of necessity, your server probably is unable to handle the number of tables he/she has been assigned.  You should reduce his/her table count until his/her service improves.

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The Benefits of Mystery Shopping

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Many managers usually ask us, “Why do we need mystery shopping?” or “How will mystery shopping benefit our hotel?”We are here today to answer these questions for you and more. Let’s start with the most basic, but very important question of, “What is Mystery Shopping?”To TrueGuest, mystery shopping is a training and observation tool for managers. With shoppers acting as normal customers writing detailed reports about the service they experienced, managers are able to get a rare glimpse of the service from a guest’s perspective. Mystery shopping provides a great look at the service a hotel provides that you, as a manager cannot personally see. By using these reports, a service improvement training program can be implemented with the proper accountability. How often do you train and train on service standards only to get poor “official” scores on guest service? How do you know where to begin to find out what went wrong? Mystery shopping reports provide that accountability tool for managers. They can find out exactly what is or is not happening that creates poor service.

There are many hotels that tell us, “We are doing well in our guest service scores, so we do not need any mystery shopping!”To those hotels, we say, “Congratulations!”But think of it this way; who fills out those comment cards that you regularly base your success on? The guests that take the time to fill out the comment cards are almost always either the guests that had a wonderful visit or the guests that had a completely terrible visit. This probably accounts for only 1% of your total guests. What you are essentially saying is that you do not care about how any of the guests in between feel; a good 99% of them. You are risking the loyalty of the guests that you provided below-average service to, who did not feel like filling out your comment cards. How would your corporate office respond to that? Comment cards are like a crapshoot; you hope that you get “good” guests this month and that they give favorable scores. Why not turn that crapshoot into a sure thing? Mystery shopping provides an unbiased, objective look at your service at any given time. Managers are then able to focus on keeping service consistently high by pinpointing and correcting any service deficiencies instead of waiting for a guest to comment on them. Unfortunately, they probably will have chosen another hotel by then.

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WSJ Reports Businesses See Rise In Employee Theft

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WSJ-LogoThe Wall Street Journal posted a great article on the rise of employee theft as a result of the recession.  You can read the entire article on MSN’s Money page here.  The article reports that ‘New research shows that employers are seeing an increase in internal crimes, ranging from fictitious sales transactions and illegal kickbacks to the theft of office equipment and retail products meant for sale to customers.’  The article also mentions that ‘To many employers’ chagrin, the workers guilty of the most grandiose theft frequently turn out to be those deemed to be highly trustworthy’.

We have seen a dramatic increase in internal theft while in the field and expect to see a continued increase in 2009, especially in employees who rely on tips for a large part of their salary.  Many hotels have been forced to dramatically reduce the number of hours as occupancy declines and many of the hotel restaurants have slowed down.  Many employees are now really struggling to make what they made in the past and most cannot afford to take a pay cut and still pay their monthly expenses.     Continue reading →

Are Rising Food Costs Killing Your Restaurant’s Profits?

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Are rising food costs decreasing your restaurant’s profits?  You better act now!  We anticipate the cost of food, especially the staples, to continue to rise.  Food and Beverage Departments for hotels are typically low-profit areas and can easily turn into no-profit areas if you do not react quickly.  Here are some things that you can do:

Know Your Food Costs – It is surprising how little hotels actually know about their food costs.  Most hotels have a breakfast buffet, however, few hotels have any idea what their food cost is on the buffet.  Most just assume they are making a high profit because they were taught that buffets were always high profit.  Not true.  Spend the time to calculate your buffet cost.  You may be surprised to find out that your buffet food cost is 40 or 50 percent!

Here is a simple way to find out the food cost for your buffet:  Have the kitchen log every single item that is used on the buffet during a 7 day period (10 cases of bacon, 22 cases of eggs, etc).  At the end of the week, add up the total food expense and divide it by the amount of revenue you posted for those days.  Be sure to do it for a whole week because you will find that your weekend food cost is very different than your weekday food cost.  Also, be sure to add in all items included with the buffet such as juice and coffee.

Re-engineer Your Menu – Hopefully, you are using a spreadsheet or computer program to monitor your menu engineering.  Be sure to re-evaluate your menu every single month.  For additional menu engineering help, check out this article.

Evaluate your menu prices – Now that you know your food cost and your menu engineering, be sure to evaluate your menu prices.  You will most likely have to raise prices.  However, don’t just raise all of the prices across the board, be very strategic.  Raise only the prices of the items that are the best sellers but do not have the best profit.  Keep the prices the same on the items that do not sell well but have a high profit.  Replace the items that do not sell well and do not have a high profit.

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How to Calculate Beverage Cost

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Surprisingly, many people that are in food and beverage management positions and even general management positions do not know how to calculate beverage costs, one of the most important costs in every hotel’s budget.  Don’t worry, we won’t tell!  We will help you keep that secret by showing you how beverage cost is calculated.  It is really quite simple.

Here is the way that most actual costs are calculated.  This is the cost that you usually try to get as low as possible in order to beat your budget.

First, you will need your bar’s total purchases (in dollars) for the period.  Remember, these should be liquor purchases only.  Second, you will need to know your change in liquor inventory (in dollars) for the period.  You will then subtract the total change in inventory from the total purchases (if the total change in inventory is negative, keep it that way but still subtract it from total purchases).  We must take into account the inventory change because if you do not, purchasing more liquor to stock up would drive your liquor cost up while lowering your inventory by purchasing less would lower your liquor cost.  If the liquor inventory is not considered, your liquor usage will not be properly seen in your cost calculation.  Lastly, you will need your bar’s total liquor revenues for the period.  Divide the first (purchases – inventory) number by the revenues.  That final number will be the cost percentage for the period.  A formula for those of you that need to see it visually is below.

 Actual Cost Formula

Check back soon for more useful tips that just might make your job easier.

Perpetual Beverage Inventory How-To Video

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mqdefaultPerpetual Beverage Inventory How-To Video

Training Video Goal: Successful implementation of perpetual beverage inventory by providing instructions and necessary tools

Training Video Length: Approximately 10 Minutes, Video can be paused and replayed at the viewer’s chosen speed

Training Video Audience: All Food and Beverage Managers implementing a perpetual beverage inventory system

This video takes approximately 1 minute to load and will automatically play once loaded. For your convenience, all templates and instructions that are mentioned in the video are available free for download on this page below the video.

To download the Perpetual Beverage Inventory Template in Excel Format, click here.

To download the Perpetual Beverage Inventory Template instructions in PDF format, click here.

To read an article on Perpetual Beverage Inventory, click here.

To download the free Banquet Bar Requisition Template in Excel format, click here

To download the Banquet Bar Requisition Template instructions in PDF format, click here

The Hard (Rock) Sell

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Anyone who has ever worked with TrueGuest will tell you that one of the biggest things we preach is proper selling and up-selling techniques.  We have to give a tip of the hat to a restaurant that really nails the art of selling.  Here is our story:

Three of our team members went to the Hard Rock Cafe for a quick lunch.  Because the Hard Rock is a tourist destination, they really had a lot to sell.  The host sat us at a table, handed us menus, and said that our server would be over in just a minute.  A minute later, the server arrived and greeted us.  She asked for our drink order.  Instead of just asking ‘what would you like to drink’, she also recommended three beverage selections including their specialty iced tea.  When one of us ordered a soda, she casually tried to up-sell him on the souvenir cup.  It probably would have added another $4 or $5 to the tab.

After taking the beverage orders, the server offered us an appetizer.  Instead of just asking ‘what can I get for you’, she recommended an appetizer sampler platter for us to share.  The appetizer platter was $19.

When she came back to take the entree order, she came up with creative ways to up-sell.  She offered different side order choices (at a premium price of course) and extra toppings on the sandwiches (add another buck for bacon, etc.).

While we were waiting for our food, she brought over a miniature catalog of Hard Rock stuff from the gift shop.  She said that if we wanted to purchase a t-shirt or something, she could get it and add it to our bill.

After the meal, she attempted to sell us some desserts.  The dessert menu was cleverly placed inside of the check presenter so you would be forced to look at it.

The server was great at selling and had a lot of opportunities.  She was very casual about everything that she offered.  It would have been very easy to say ‘yes’ to many of her choices.  She probably does very well with her tips and her average check is probably well over $20, even though most entrees are only around $10.

The McScam

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It turns out that hotels are not the only victims of crafty employee theft.  Here is the fast-food version of the breakfast buffet scam:

I was in West LA last weekend and had time to get a quick bite to eat with some friends.  Most convenient, of course, was a major fast-food restaurant down the street.  Some of us were not very hungry, so the ones who were ordered first.  Everything was normal at first; we ordered food that the cooks in the back had to make, the cashier entered the transaction into the computer, processed the payments, gave a receipt, etc.

Then the ones that just wanted small items came to place their orders.  As I waited for my food to the side, I noticed that she started to use a small calculator instead of the register that she had used with me to add up the cost of each order.  One of my friends ordered a drink and large fries (both items the cashier could retrieve herself).  She punched the amounts into the small calculator and asked for $2.79.  My friend paid with cash, the cashier put the money in the drawer, did not present a receipt, and provided the drink cup and fries.  Another one of my friends ordered a specialty coffee drink.  The cashier listened to the order, then asked, “That’s it?”  Once my friend nodded his head, she then recalled the price from memory and asked for $2.19.  She then did the same with the money as the previous transaction.

There was a good flow of people coming in to order food and as I waited for my food, I could not help but laugh.  For every transaction that she did not have to send to the cooks or have to process a credit card, she would not ring the transaction into the register.  One can only imagine how much money this cashier was making, but even worse, how much more money the fast-food restaurant was losing.  She obviously had been doing this for some time and because the restaurant was in a very high volume area, the managers or owners probably do not even notice.

Take it from me, she was being so obvious because she knows that she probably won’t get caught.  These things happen often in places I go.  Managers and owners just need to take a closer look at their operations.

Got a McStory to share?  Post it in our comment section.