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Reverse Falling F&B Profits for a Hotel Group

A hotel group has annual revenues in excess of $50 Million, but sales and profit margins are eroding.

Conducted a 3-stage property review

1. Pre-visit review

a. P&L’s spanning 4 years – analysis of sales and cost trends

b. Review menus and sales mix reports, catering pace reports, organization chart(s), inventories, other information supplied by hotel

c. Review hotels’ web site(s) and information about F&B; assess social media standing ; review hotel’s F&B competitors

2. On-site visit

a. Tour property, FOH & BOH

b. Meet with department heads including catering sales team, review Stage-1 conclusions/assumptions

i. For restaurants, room service, bars/lounges, banquet and meetings, assess: COGS, labor productivity, sales and marketing

ii. Analyze P&L, YTD results, organization and management team, sales mix, market segmentation, cost control systems

iii. Evaluate menus: layout, formatting (printed & digital), pricing, engineering

c. Review initial findings and impressions with hotel management.

3. Post-visit: prepare detailed report of findings, agreements, action plans with priorities.


Gaps in corporate follow up process were uncovered and resolved.


Changes were implemented that yielded improvements in F&B sales POR and profit margin.

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