6/19/2023 0 Comments La vegas resturant salesx mangers“Times are good? You’re expected to triple revenues and cut costs by a third. “Beverage programs are always a hustle,” says Andy Myers, MS, the former corporate wine director for José Andrés’s Think Food Group and current wine director for Kohanaiki resort in Kona, Hawaii. This seems to be an industry-wide phenomenon. “Since COVID, that number has changed to about 22 to 30 percent-while we’ve simultaneously been asked to push sales.” “Our COGS margin pre-COVID was at about 33 percent,” she says. Bobbie Burgess, the wine director of Restaurant Tyler in Starkville, Mississippi, was asked to downsize her list, reduce carrying inventory, and dramatically lower her beverage cost of goods sold (COGS). On top of all this, budgets have been slashed and inventories have been reduced, forcing beverage directors to do more with less. Now more than ever, profitable beverage programs are hyper-important to a restaurant’s success, due to factors like increased operating costs (such as outdoor dining construction and single-use items), wage and benefit increases necessary to retain staff, and diminished capacity for some restaurants. Though the restaurant industry is inching its way back to operational normalcy, the way beverage programs are run has irrevocably changed. ![]() Simply put, it costs far less to put a bottle of wine or a cocktail on a table than it does an entrée or dessert. ![]() Plus, it’s not nearly as perishable as food. There are myriad reasons for this-for example, beverage generally has less loss, lower labor costs, and less prep variation. While food sales might typically account for 60 to 70 percent of gross revenue, the beverage category often accounts for 80 percent or more of gross profit dollars. Beverage programs have always been integral to the financial success of restaurants.
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