Hospitality
Know which outlet earns, and which one the others are carrying
Hospitality earns in small amounts, continuously, across several outlets with different economics. We report at outlet level so a weak one is visible while it can still be fixed.
Which outlet actually earns.
Rooms · restaurant · bar · banquets, costed apart
At a glance
Profit is reported for the property as a whole, so cross-subsidy between outlets is invisible.
Outlet-level performance
Outlet-wise contribution.
The economics
Why the numbers are harder here
A hospitality business runs several businesses at once — rooms, restaurant, bar, banquets — sharing premises, staff and management. Each has a different cost structure and a different margin, and a consolidated profit figure tells you nothing about any of them.
Cost of sales moves daily with purchase prices, portion control and wastage, and most of that is decided by people on shift rather than by anyone reading a monthly report. By the time a variance shows up in the accounts, a month of it has already been served.
The problem
Where visibility breaks down
- Profit is reported for the property as a whole, so cross-subsidy between outlets is invisible.
- Food and beverage cost is a monthly percentage nobody can decompose into price, portion or wastage.
- Stock across kitchen, bar and stores is counted for operations and never agreed to the books.
- Shift and casual payroll is processed from rosters that were changed verbally.
- Complimentary covers, staff meals and management discounts are not recorded as cost.
Where we concentrate
How we focus the engagement
Outlet-level performance
- Contribution by outlet, with shared cost allocated on a stated basis.
- Revenue per available room and per cover, tracked against the cost of delivering it.
- Banquet and event profitability computed per event, not absorbed into a monthly total.
- Payroll as a proportion of revenue, by outlet and by shift.
- Seasonality separated from underlying performance, so a soft month is read correctly.
Cost and revenue control
- Food and beverage cost decomposed into purchase price, portion and wastage.
- Stock reconciled across kitchen, bar and stores on a fixed cycle.
- Purchase rates checked against agreed rates at receipt.
- Complimentary covers, staff meals and discounts recorded as cost with an owner.
- Cash handling and point-of-sale reconciliation at every service point.
Reporting
Reports worth receiving
- Outlet-wise contribution.
- Food and beverage cost percentage, decomposed.
- Payroll as a proportion of revenue, by outlet.
- Wastage and complimentary cost.
- Daily revenue reconciled to point of sale and to banking.
Common questions
Questions we hear in this sector
Our point-of-sale system already reports sales. What is missing?
Sales, usually nothing. The gap is on the cost side: what those sales consumed, what was wasted, what was given away and what the shift cost to run. Contribution needs both halves, and the second rarely reaches the accounts in usable form.
How do you allocate shared costs between outlets?
On a basis agreed in advance and then applied consistently — floor area, covers, revenue or headcount, depending on the cost. The basis matters less than not changing it, because a changing basis makes every comparison meaningless.
Can this work across multiple properties?
Yes, and it is where it earns most. A common structure across properties is what makes them comparable; without it each is reported in its own terms and the group has no view.
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