Hospitality

capture rate

the percentage of hotel guests who use F&B outlets

capture rate =

( guests dining in the outlet / total hotel guests ) x 100

food cost

the percentage of a menu item’s price spent on ingredients

food cost % =

( food cost / selling price ) x 100

most food outlets aims for a food cost of approximately

28 - 35%

contribution margin

profit per item after food cost

contribution margin =

selling price - food cost

pour cost % =

( cost of beverge sold / beverage revenue ) x 100

most bars aim for a pour cost of

18 - 25%

liquor

15%

wine

30 - 40%

draft beer

20%

bottled beer

25%

banquets

in-hotel events with controlled & standardized service

catering

off-site service with flexible & more complex operations

the Director of Catering (DOC) works closely with

rooms division & kitchen

banquet event order (BEO)

a detailed document that outlines all the requirements & arrangement for a specific event

upselling

a sale technique that encourages customers to choose a higher-value version of a product

cross-selling

encourages customers to add complementary items to their purchase

moment of truth (MOT)

refers to any interaction within the customers journey where a customer forms or changes their impression of the brand

physical evidence

tangible elements customer encounter throughout the experience
(signage, waiting area, menu table setting)

customer actions

step & activities customers perform throughout the experience
(arrive, waited to be seated, review menu, place order)

frontstage actions

activities performed by employees that are not visible to customers
(greet guests, present menu, take order)

support process

internal activities & systems that support service delivery
(waitlist sytem, POS system)

backstage actions

activities performed by employees that are not visible to customers
(update table status, send order)

average guest check

refers to the avg amount of per customer during a visit “revenue efficiency”

average guest check =

total sales / number of guests

table turnover rate

the number of times a table is occupied by different groups of customers during a given period “operational efficiency”

table turnover rate =

no. of parties served / no. of available tables

item popularity (%) =

(no. of item sales / total menu items sales - no. of guests) x 100

average popularity (%) =

(1/no. of menu items x 0.7) x 100

item profitability =

selling price - food cost

avg profitability ($) =

(total sale revenue - total food cost) / total menu item sales

local event

small-scale events designed for local community

major event

medium-to-large-scale events attracting regional or national attention

hallmark event

associated with a specific destination

mega event

large-scale events with global attention

urban cleansing

the displacement of residents or businesses to improve the city’s image before major events, often affecting low-income communities

white elephant

expensive facilities built for major events that are underused or abandoned afterward, creating a long-term financial burden

meetings

• discuss & make decisions on business matter

• small & focused sessions

• centered around specific topic or a goal

incentives

• motivate, recognize & reward performance

• incentive travel program

conferences (convention)

• showcase knowledge, discuss trends & network

• large & multi-session programs

exhibitions (trade show/expos)

• showcase products & services

• booths, displays, open-floor interaction

Avg Guest Check of Fast food

$5 - $12

Avg Guest Check of Fast casual

$10 - $20

Avg Guest Check of Casual dining

$15 - $30

Avg Guest Check of Fine dining

$50+

Table Turnover Rate of Fast food

3-5 times

Table Turnover Rate of Fast casual

2-3 times

Table Turnover Rate of Casual dining

1.5-3 times

Table Turnover Rate of Fine dining

1-1.5 times