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1 1
2 Implementing F&B Revenue Management Tim Schulte, Infor EasyRMS 2
3 Agenda Some Statistics & Trends Menu Engineering F&B Pricing Day Period Analysis F&B Forecast KPI s Cross Selling 3
4 How do I maximize my margins? 4
5 Some statistics & Trends 5
6 Some statistics 6
7 Some statistics 7
8 Some statistics 8
9 Some trends in 2014 After a number of years of decline, F&B spend is growing Restaurants in retail stores Healthy is on the rise Chicken is back Fish is in particular demand Butter is not enough Vegetarian and vegan is becoming more and more important Food is not enough, play with the senses A deeper look into Asian and Mediterranean cuisine *Reference: Baum+Whiteman 9
10 Menu Engineering 10
11 Menu Engineering Foundation of any F&B Revenue Management effort: Star Very popular dishes on the menu with a high contribution margin Plough Horse or Cash Cow Very popular, but low contribution margin Puzzle Low popularity but high contribution margin Dog Low popularity and low contribution margin 11
12 F&B Pricing 12
13 F&B Pricing Cost Plus Pricing Cost of ingredients, Staff costs, Other costs Offers They can be very good in order to drive demand Make sure that once the guest is in the restaurant, there are upsell options Special Events Can be a good way to charge a premium Happy Hour A good method to stimulate consumption Fully dynamic pricing 13
14 Day Period Analysis 14
15 Day Period Analysis 15
16 Day Period Analysis 16
17 F&B Forecast 17
18 F&B Forecast 18
19 F&B Forecast Create a detailed forecast per month by day period Compile a summary forecast for overview Identify periods of need and peak demand periods Implement strategies accordingly 19
20 Day Period Analysis Promote slow periods Maximise peak periods Efficient use of tables (no 2 persons on table for 4) Different peak period menu Try to boost average spend Chef s specials with high contribution Sell Stars and Puzzles Incentivize Staff Encourage guests booking for peak periods to move to slow periods by offering specific incentives 20
21 Key Performance Indicators 21
22 Key Performance Indicators Average Spend Average amount spent per person REVPASH Revenue Per Available Seat Hour Total Revenue / Number of Seat Hours 22
23 Cross Selling 23
24 Cross Selling The most effective way to stimulate restaurant usage by hotel guests is by cross selling. Incentivize the staff to sell the restaurants and ensure that they focus on the restaurant that has the highest contribution margin or that needs the business the hardest Discuss the performance of the restaurant as well as the results of the cross selling efforts in order to push the teams. 24
25 Summary Menu Engineering F&B Pricing Day Period Analysis F&B Forecast KPI s Cross Selling 25
26 Infor EzRMS Revenue Management System F&B Analysis Accurate forecasts Detailed transaction based reporting Room category optimization 26
27 Infor EzRMS F&B Analysis by Segment 27
28 Infor EzRMS F&B Analysis by DOW 28
29 d/epm Hotel Core Solution Budgeting, Forecasting and Reporting 29
30 Infor d/epm Solution Overview Web Mobile In-Context BI Report Distribution Excel Business Intelligence Infor d/epm Applications Pertormance Management Data storage and/or ION Business Vault Analytics Strategy Management Budgeting/ Planning Financial Consolidation Infor ERP / Other ERP (SAP / MS / ) Other Data Sources Applications/Databases Files 30
31 Dashboards, Self-Service Hotel Core - Content Web, Mobile Multi-Dimensional and Relational Ad-hoc Reporting Multi-Dimensional and Relational Reporting Financial Statements and managerial reports (PL, BS) Reveneus and Capacities Data Discovery Data Mining Predictive Infor d/epm Payroll and FTE statistics Preopening, Capex Hotel Core - Processes MS Office Office Integrations Budgeting and Long-Term planning Application Workflow Meta Data Layer (relational + multi dimensional) Rolling Forecast process Web Hierarchy- and Multi Dimensionality SkyVault / Business Vault Revenue modelling (daily, weekly, montly) ION Master Data Management Infor ERPs 3 rd Party Reporting and Analysis from Finance and Front-Desk systems 31
32 Revenue - Food & Beverage Planning / Reporting objects Banqueting Room Service Mini Bar Kitchen Stewarding F&B Administration Seats Total F&B Guests Guests Breakfast / Lunch / Dinner / Other / Night Covers Total FandB Guest Ratio Guests Ratio Breakfast / Lunch / Dinner / Other / Night Planning / Reporting KPI s Average Check Breakfast (T, F, B) Average Check Lunch (T, F, B) Average Check Dinner (T, F, B) Average Check Night (T, F, B) Average Check Other (T, F, B) Average Check (Food only) Average Check (Beverage only) 32
33 Further information
34 Questions 34
35 35
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