Beverage costs has major impact on the operation

Foremost among them is usually the fact that revenues are not as high as they might be. Managers are constantly making decisions that effect profit. One of the desicion-making areas which is crucial to all managers concerns profit planning. Attempts to show how cost-volume-profit analysis can be applied to pratical planning situation in the hospitailty industry.

Paradoxically the cost-volume-profit analysisis is one of the most widely reffered to techniques in managerial accounting, but all too often it is not used to its full potential in the operational environment due to oldfashioned ways of thinking, disregarding new concepts which could help to solve this problem.

The key to more success is the beverage sales, which is an easy way to increase profitablity because the costs are usually lower and the gross for alcohol greatly outweightes that of food. However if the management is reaching maximum portential for within the operation the beverage costs will have to be controlled. Even a small reduction in the beverage cost percentage is going to result in a way higher gross profit!

It is true that a profitable restaurant or club will usually generate a 22%-28% of beverage cost.

Not only is the beverage cost telling the manager how much control he has on his stock control system but it also reflects how skilled the management systems are and the value they provide to the customers. Beverage cost is important and as it has a major impact on the operation it is essential to know where the cost falls in relationship to sales sales on a daily, weekly and monthly basis. Next month is too late to fix this month. If the beverage cost is not in line then the help is neede. Stop the need to take a look at who is pouring the drinks down the drain instead of into the paying customers mouths.

United Companies Corp. is providing the hospitality industry with the CORDIALS V.I.P. Cocktail & Long Drink portfolio the unique beverage system to obtain the MAXIMUM profit.