Covid-19 has caused a sea-change in guest behaviors and expectations when it comes to hotel and restaurant F&B operations. As we look to what the future may bring; there is little doubt that guests will have a heightened sense of safe food handling practices and cleanliness, and properties will need to modify their operations to adjust to new regulations and guest concerns.
Every day simple operational procedures will need to be considered. Such as handling of food and commonly used items, exchange of money, utensils, sharing of coffee/teapots, transporting plates, beverage and condiment servings. Not to mention the physical distancing regulations that are expected to have an impact on to-go and room service options as well as restaurant/bar table configuration and guest proximity.
Low F&B cost performance on the P&L has quickly changed. As an example, as group revenue will be impacted heavily for many months to come, loss of higher group catering profit margins will impact overall F&B costs. Consequently, a la carte related food and beverage costs will be scrutinized under a larger microscope.
Now is the time to think about how your business can adapt and modify its operations so you can be prepared for these changes. Avendra’s Consulting Services team has compiled several ideas as food for thought. Read more or click below to download a PDF version as you look to manage a new path forward.
Download Food for Thought Guide
Reopening Considerations
Know Your Margins
- Know input costs and B/E points
- Treat each outlet as a separate P&L
- Calculate overhead costs (labor, electricity, rent, paper goods)
- Monitor, measure and frequently adjust
- Point of sale must be correct and accurate, menu engineering analysis is necessary
Evaluate Purchasing Practices
- Collaborate with finance and adhere to a weekly spend threshold
- Centralize purchases and direct orders
- Reduce specialty product ingredients
- Limit transactions, delivery times and frequencies
- Suspend non-essential Capex spend/projects
- Inquire with supplier/distributors on what they may be discounting
Staffing Plans
- Revise staffing guidelines
- Now is a great time to precisely calculate labor for forecasted covers/revenue
- Set thresholds for varying levels of occupancy, covers and expected revenue
- Reconsider contract/buyout labor and instead, cross utilize current employees
Product Alternatives
- Reduce menu items that are highly perishable and require frequent inventory turns (live shellfish)
- Adjust specs to lower-cost choices
- where applicable, downgrade branded coffee options
- move away from premiums labels (prime, organic, other notable brands)
- promote “plant-forward” (smaller protein portions, more veg)
- Evaluate food and beverage deadstock (freezer/wine/liquor)
Menu Adjustments
- Increase frequency of analytics and profitability reports; be ready to change/alter menu options and price points
- Capitalize on specials to utilize inventory, be flexible to change/alter menu options
- Flex to a la carte, grab-n-go and a smaller fixed menu, fewer options
- What specials, promotions, etc. can be created to draw guest interest?
- Are there impulse buys, especially during breakfast, that can appeal to guests?
Avendra’s supply chain experts are working with suppliers every day on our customers’ behalf to understand how the supply chain is impacted by COVID-19 and to find sources for the products and solutions needed to operate safely and effectively. We are also providing important information for Ramp-Up and Reopening procedures to our clients, helping to get them back to business. Let us know how we can support you. We are here to help.
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