| By Gilberts (Gilberts) on Saturday, July 20, 2002 - 08:55 pm: Edit |
Banquet Food Cost
Anybody in banquet who would talk about his/her food cost?
Does anybody knows what the average food cost is for the banquet industry in the US?
Or how do I find the information?
I need the information for my business plan.
Thank you in advance
Gilbert
| By Chefmanny (Chefmanny) on Sunday, July 21, 2002 - 07:42 am: Edit |
There'a a whole thread on FC somewhere in the forum
| By Gilberts (Gilberts) on Sunday, July 21, 2002 - 04:55 pm: Edit |
Thanks Chef,
But, I am looking at specific % in the hotel banquet department only.
As you know, that is where the best numbers are.
Banquet is different, there is no guessing as to how much to purchase,
prepare and serve and at what time.
A sharp operator will not be so concern at percentage but more on the net.
A set down diner for $75 with a food cost of 35% will bring in more cash than
a $50 with 25 %.
| By Mbw (Mbw) on Sunday, July 21, 2002 - 07:16 pm: Edit |
I remember my chef at the Hyatt got in trouble when his costs dropped below 23%. They figured he wasn't spending enough to be putting out a good product.
He rocked they sucked!
Most of the expense in Banquets is setup and labor right? Catering is very similar and the same rules should hold up. I target 25% material costs and allow myself up to 35% if need be. Truth be told I have done parties with food costs as low as 12%, and had food left over AND big complimnets.
About your math? I agree $30 is more that $25 even IF your percentage changes. The big problem to watch for here is that you may need to spend more in labor to produce the $30. So are you really making more??? Maybe not. The up side is your staff will often do a better job with the bigger budget just because they will feel better about final quality of their work.
I vote for 25%
MBW <---Catering guy
| By Chefmanny (Chefmanny) on Wednesday, July 24, 2002 - 09:35 pm: Edit |
Banquet food cost is relevant to tthe quality of food you provide. I used to work in a resort hotel where it was 13%. I also worked in a hotel in the center of a downtown area where food cost was 39%.
I think it makes a big difference on what the culture of the F & B Dept. is. Do they believe in the "we'll never see them again attitude" or do they "want them back on a regular basis" attitude.
Portion sizes are also very relevant, you can fill them up with bread and a big salad and serve a 4 oz. chix breast w/ sauce, 3 ozs. starch & 3 ozs. veg. and choco. mousse.
I guess the answer is, it depends on the clientele and management attitude but, there is no fixed number in my opinion!!!!!