Controlling Food Sales

CONTROLLING FOOD
SALES
Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved
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 Profits
The 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 Revenue
Documenting 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 Revenue
Using 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

Controlling Food Sales

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CONTROLLING FOOD

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