When it comes to achieving profitability in the hospitality industry, there are several essential pillars that need careful monitoring. At Melbourne based Alto Cibum, we specialize in food and beverage consulting, understanding that tracking these critical elements is the key to food and beverage success. 

In this blog post, we’ll delve into the pillars of profit in hospitality management, including labour costs, COGs (Cost of Goods) tracking and appraisal, minimizing unnecessary overheads, benchmarking suppliers, and the importance of a system that streamlines labour and COGS tracking.

1. Labour Costs

Labour costs are a significant component of any hospitality operation. Efficiently managing labour costs while ensuring excellent customer service is a delicate balance. Tracking labour hours, optimizing staff scheduling, and implementing training programs can help control labour costs without compromising service quality.

2. COGS Tracking and Appraisal

COGS represents the cost incurred in producing the goods or services sold by your hospitality business. Accurate tracking of COGS is crucial for maintaining healthy profit margins. Regular appraisal of suppliers, negotiating better deals, and monitoring inventory turnover can lead to cost savings and improved profitability. At Alto Cibum, we produce an inhouse dashboard that tracks all fluctuation with COGs and makes it relative to your other business metrics, giving you the resources to track these important factors daily, weekly and monthly.
 

3. Minimizing Unnecessary Overheads

Hospitality businesses often face the challenge of unnecessary overhead costs. Streamlining operations, reducing energy consumption, and eliminating wastage can contribute significantly to cost reduction. Identifying areas where overheads can be minimized is essential for long-term profitability.

To find out more about our state of the art operations tracking software, build for hospitality, contact us at hello@altocibum.com

4. Benchmarking Suppliers

Benchmarking suppliers is an effective strategy for cost management. It involves evaluating the performance and pricing of various suppliers to identify the most cost-effective options. Regularly reviewing supplier agreements and seeking competitive bids can help hospitality businesses secure the best deals.

5. System COGS and Labour Tracking

In today’s fast-paced hospitality industry, real-time data is critical for success. That’s where a system for COGS and labour tracking can make a significant difference. At Alto Cibum, we’ve developed a state-of-the-art system that sends daily COGS and labour reports for day-to-day success-driven operations. This system allows businesses to make data-driven decisions, optimize inventory management, and monitor labour costs in real time.

Our system provides insights into sales trends, helps identify potential areas for cost reduction, and ensures that operations run smoothly. With daily reports, hospitality managers can proactively address issues, fine-tune their strategies, and achieve higher levels of profitability. 

In conclusion, the pillars of profit in hospitality management encompass labour cost management, COGS tracking and appraisal, minimizing unnecessary overheads, and benchmarking suppliers. These elements are crucial for achieving food and beverage success and profitability in the competitive hospitality industry. 

At Alto Cibum, we recognize the importance of effective management in the hospitality industry. Our system for COGS and labour tracking is designed to empower businesses with the tools they need to succeed. To learn more about how we can support your hospitality management needs, visit www.altocibum.com. Let’s work together to strengthen the pillars of your hospitality business and drive it towards greater profitability.