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The Practical Guide To Understanding and Raising H... - (Chapter 6 Food Sales)

food sales

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0% found this document useful (0 votes)
119 views10 pages

The Practical Guide To Understanding and Raising H... - (Chapter 6 Food Sales)

food sales

Uploaded by

Ery Darmawan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Chapter

6
Food sales
Contributed by Dimitri Lera

6.0 Introduction
F&B sales means the total amount of revenue gained from the sales of food
and drinks in the different outlets within the hotel. Some hotels have a strong
conference and events department, which generally represents, for many F&B
departments, a large source of revenue from the sale of food and beverages and
thus contributes to the F&B department.

This chapter discusses measures to increase the financial performance of F&B


sales. It will also provide some industry first-hand experience by presenting an
example in support of the measures suggested.
Copyright © 2019. Taylor & Francis Group. All rights reserved.

6.1 Measures
The foodservice industry is a competitive environment. With trends changing
rapidly it is paramount to keep costs down and sales up.

In hospitality it is widely believed that whether a business is well-established or


brand new, the bottom line to remain successful is about getting new customers
patronising the premises, having them coming back, and making sure they are
spending. Achieving all three is easier said than done, which is why the business
owner needs to adopt the right approach.

Martin, Adrian. The Practical Guide to Understanding and Raising Hotel Profitability, Taylor & Francis Group, 2019. ProQuest Ebook
Central, [Link]
Created from bournemouth-ebooks on 2022-12-09 [Link].
Food sales 49
There is often a lot of discussion around strategies aiming at acquiring new
customers, having them come back and the different tactics that a manager can
put in place.

DIMITRI’S VOICE
Experience has taught me that whilst acquiring new customers is a key factor
to the long-term profitability of the business, retaining customers for them
to return and driving sales up from current customers is even more essential
to the long-term profitability of the hotel.

Before discussing the main aim of this section, let us briefly review strategies
available to every manager to maximise revenues from current customers. These
strategies should be considered by every manager while addressing how to drive
sales from current customers.

6.1.1 Increasing loyalty


Word of mouth is still a very powerful tool to increase loyalty and therefore the
profitability of the F&B department. Eating out is much more than a nutritional
occurrence – it is an experience. The regulars who frequent the premises will
share their experience with their peers, colleagues, friends, co-workers, family…
and the closer the bond among these groups, the stronger the message.

Whilst it is worthwhile to invest a lot of effort (whether financially or operationally)


to reach a larger audience, only a small number might visit the premises. On
the other hand, current customers provide the business with the best form of
advertising at no extra cost.

To increase customer retention a manager should consider developing a customer


loyalty program. Whether in the form of a card or a membership, consistent
Copyright © 2019. Taylor & Francis Group. All rights reserved.

patronage should be rewarded. Benefits can be provided to loyal members or


‘club’ members, such as discounts, special offers, VIP seating, events such as
menu tastings or networking evenings, and first-chance offers such as priority
booking. People respond to being treated favourably, to being rewarded, and
being ‘members of a club’.

Some hotels have a system where they use a napkin fold (folding it in a
different style to the other tables) to help staff identify a new customer to the
restaurant. This enables the waiting staff to spend a little more time getting to
know the customer and explaining the menu but it also gives the opportunity
to entice a return visit. For example, at the point of checking whether the
customer enjoyed their meal, asking if they tried a particular dessert (knowing

Martin, Adrian. The Practical Guide to Understanding and Raising Hotel Profitability, Taylor & Francis Group, 2019. ProQuest Ebook
Central, [Link]
Created from bournemouth-ebooks on 2022-12-09 [Link].
50 Food sales
full well that they haven’t) and telling them they have to try it the next time
they come.

To increase customer retention a manager could also think about getting involved
in the local community, whether sponsoring a local event or contributing to a
charity as an effective way to return to the community giving stronger local value
to the brand associated with the hotel.

6.1.2 Alternative payment methods


As people seem to have less and less time as their schedule gets busier and busier,
some potential customers might be prevented from entering the premises by a
limiting schedule. Making provisions for takeaway dishes both in the form of a
suitable menu and flexible reliable delivery service can expand the reach of the
F&B offer.

Some customers may like the food they are used to in the convenience of their
rooms or even their homes. Including online ordering and a range of payment
options can be implemented with little investment but careful planning.

6.1.3 Maximising table turnover rate


Restaurants that have been successful at marketing themselves often have a
problem of not being able to accommodate additional customers. Competition has
not always been as fierce as it is today. In those times, long queues would form
outside the doors of prestigious establishments. There, knowledgeable and skilled
hotel restaurant managers were masters of the art of ‘flipping’ tables and receiving
generous tokens of gratitude for their ability to offer a table in an otherwise full
dining room. Times might have changed yet maximising table turnover is still a
successful strategy for long-term profitability of the F&B operation.

To serve more customers is to sell more food and drinks. Care must be taken
not to make diners feel rushed but turning over tables quickly can substantially
Copyright © 2019. Taylor & Francis Group. All rights reserved.

increase sales. Whether by having a hostess at the door, or training staff to take
orders and process payments in a timely manner, or providing after-dinner coffee
in the lounge or library, these are some of the strategies to successfully manage
the flow of diners who are in the restaurant.

6.1.4 Enhancing online presence


In the current climate technology is a key factor which contributes to the long-
term profitability of the operation. The aim should be to make technology work to
the advantage of the business but also enhance the experience of the customer. If a
piece of technology doesn’t help the business and provide benefit to the customer,
such as speed, flexibility, and streamlining, then it shouldn’t be implemented.

Martin, Adrian. The Practical Guide to Understanding and Raising Hotel Profitability, Taylor & Francis Group, 2019. ProQuest Ebook
Central, [Link]
Created from bournemouth-ebooks on 2022-12-09 [Link].
Food sales 51
An online presence through social media must be dealt with professionally. If the
manager cannot dedicate themselves to this task, it is advisable that one of the
professionals, a person of trust, should be responsible for the monitoring and
handling of online enquires and feedback. The advantage of having a dedicated
professional to this task is that the online presence can be used proactively
to promote the business in many ways through engagement with current and
potential customers, from contacting existing customers to appealing to new
ones, the options are endless.

Social media is a powerful tool to help accomplish the aforementioned strategies.


However, there is one strategy that repeatedly has proven to be the most
impacting factor in driving sales from existing customers. This is the topic of the
next section (6.2) and, if skilfully implemented, can influence customers to make
additional purchases.

6.2 Upselling and cross-selling


A skilled restaurant employee can single-handedly increase F&B sales by simple
conversation. The most effective employees leave the customers in control of
their decisions and do not make the customers feel pressured to make additional
purchases. Instead, a seed is planted, and this influences the customers to make
purchases that were not originally planned.

For some employees there will be a natural propensity towards upselling and
cross-selling. For others this will have to be nurtured.

Before addressing some of the factors that impact sales techniques, we must
ascertain the difference between upselling and cross-selling, as these terms are
often and erroneously used interchangeably.

6.2.1 What upselling and cross-selling mean


Upselling refers to the practice of inducing customers to purchase more expensive
Copyright © 2019. Taylor & Francis Group. All rights reserved.

products than those originally intended.

Cross-selling encourages customers to purchase complementary products in


addition to those originally intended.

Most importantly, it should be noted, upselling and cross-selling each provide


added value to the customer.

Employees who are resistant to adopt or implement such sales techniques argue
that these are imposed on customers. However, successful upselling or cross-
selling does not involve any form of imposition. Instead, it is about informing
customers of sales options they might otherwise not be aware. It could be that

Martin, Adrian. The Practical Guide to Understanding and Raising Hotel Profitability, Taylor & Francis Group, 2019. ProQuest Ebook
Central, [Link]
Created from bournemouth-ebooks on 2022-12-09 [Link].
52 Food sales

INDUSTRY VOICE

I have attended many weddings where guests arrive early in good time
for the ceremony. They may have already travelled an hour, say, to get to
the wedding venue.

Then they sit through the ceremony.

After the ceremony there might be quite a while until they sit for the
wedding breakfast – and when they do, they have to wait for the bride
and groom to procession into the banqueting room.

It can be a very long time without eating, so I fail to understand why


wedding packages don’t build canapés and bar drinks into the wedding
package or offer it as an extra for guests who have that long wait
between their morning breakfast and the wedding breakfast – what a
lost opportunity.

Philip Berners, Lecturer in Events Management,


Edge Hotel School, University of Essex

resistance from staff is their shyness or lack of training in how to upsell and cross-
sell, and they are fearful of pushing sales on customers.

The key to effective upselling and cross-selling is to understand what the


customers’ needs really are and responding to those needs with the corresponding
products so that those needs are truly met.

In the next section an overview of how this is done is given. For practicality’s
sake in this chapter, unless specified otherwise, the term ‘sales techniques’ will
Copyright © 2019. Taylor & Francis Group. All rights reserved.

be used to describe upselling and cross-selling.

6.3 Sales techniques


Having established the main difference between upselling and cross-selling
and its value for current customers, but before identifying factors affecting the
implementation of sales techniques, it is necessary to highlight that the correct
application of these techniques requires skills which some employees may not
yet possess.

Therefore, after identifying potential skills gaps, suitable training needs to be put
into place. Ideally, in accordance with management, a dedicated member of staff

Martin, Adrian. The Practical Guide to Understanding and Raising Hotel Profitability, Taylor & Francis Group, 2019. ProQuest Ebook
Central, [Link]
Created from bournemouth-ebooks on 2022-12-09 [Link].
Food sales 53
conversant with sales techniques will regularly schedule training sessions for new
staff but also to update and refresh existing staff.

Training should not be understood as a one-off (silo) process, but as an


ongoing continuous developmental process. It should be remembered that staff
development is one of the key aspects of good leadership and will help with staff
satisfaction, morale, and retention.

6.3.1 Know the customers


For training to be successful it needs to fill those skills gaps that may vary from
one employee to the other. Hence, as a successful trainer will understand the
required needs, a successful sales technique will be purposely tailored to the
customers’ needs.

The most effective employees in sales techniques build a customer relationship


that leaves the customer feeling their needs are taken seriously yet they remain in
control of their decisions.

Smalltalk is purposely employed to identify underlying needs. Experience


helps identify types of customer more quickly, yet this can still be taught in
training.

A member of staff should not be frightened to ask questions – customers


welcome and appreciate being asked, such as does this customer require quick,
slower or more personalised service; does this customer want to be pampered
or left alone?

Customers do appreciate employees who take time to learn about them in order
to make them feel special, but will not forgive those who pursue a sale only. This
aspect will be explored further at the end of this chapter.

It is clear that effective sales techniques require a skilled workforce that knows
Copyright © 2019. Taylor & Francis Group. All rights reserved.

and understands the customers’ needs and expectations. It is not the purpose
of this chapter to discuss these customer needs, as they vary from individual to
individual and are influenced by several external factors. Instead, the focus is on
some of the techniques that a skilled workforce can apply to increase sales.

6.3.2 Know the dishes


It has been established that for sales techniques to be effective a mutual trust
needs to be built between server and diner.

This trust is built upon an assumption that the employee is genuinely concerned
with the customers’ needs and this is reinforced by meeting these needs.

Martin, Adrian. The Practical Guide to Understanding and Raising Hotel Profitability, Taylor & Francis Group, 2019. ProQuest Ebook
Central, [Link]
Created from bournemouth-ebooks on 2022-12-09 [Link].
54 Food sales
To further reinforce this assumption the employee should know the F&B offer
inside-out (or at least give that impression): what food and beverages complement
one another; what most guests seem to like at certain times of day; and – most
importantly for the success of the business – which dishes achieve higher gross
profit.

Skilled F&B staff cannot hesitate when giving recommendations – their


suggestions and answers to questions need to sound convincing. This is more
easily done when the F&B staff know what they are talking about. Knowledge
provides confidence.

F&B staff should be truly knowledgeable, and items on the menu should
have been tasted. First-hand experience of the products can give genuine
evaluation of a menu item’s texture, portion size, and all else a customer may
wish to know.

Knowledge of menu items and customers’ needs can prompt suggestions


such as fresh oysters instead of mussels, grilled sea bass instead of grilled
mackerel, rib eye instead of sirloin, cheese platter instead of a savoury flan.
Whatever the suggestion, a good knowledge of the menu will help F&B staff
make sensible pairing propositions, as they are familiar with the food and the
drinks.

6.3.3 Know the drinks


As well as being conversant with dishes, F&B staff should be familiar with
all types of beverages for effective sales techniques. There should not be
compartmentalised knowledge, whether barman, sommelier, waiter, room service
attendant… they each should have good knowledge of food, wines, cocktails or
other items sold throughout the F&B outlets.

Ad hoc training can help create a confident workforce able to give and make
specific recommendations to customers when asked, contributing to encourage
Copyright © 2019. Taylor & Francis Group. All rights reserved.

the assumption of a knowledgeable and trustworthy F&B staff.

In terms of drink sales, attention to detail is imperative because pre-emptive


timing is key. F&B staff should suggest refilling when glasses are nearly empty
and when diners are halfway into their meal as it is likely the customer would
like another drink to finish their meal. Beverages generally contribute well to the
overall profit as they achieve a higher gross profit contribution compared to some
food.

However, one category of food which historically contributes well to overall profit
is the extras …

Martin, Adrian. The Practical Guide to Understanding and Raising Hotel Profitability, Taylor & Francis Group, 2019. ProQuest Ebook
Central, [Link]
Created from bournemouth-ebooks on 2022-12-09 [Link].
Food sales 55
6.3.4 Know the extras
Sometimes customers may order side orders independently, other times customers
just need to be prompted. However, experienced and knowledgeable F&B staff
can suggest specific recommendations that pair with a customer’s choice of dish.
Again, customer knowledge coupled with product knowledge is very effective.
Whether white truffle for scrambled eggs, Marie Rose sauce for prawns, bread
for soup, extra topping for pizza, side of vegetables for main dishes, or a digestif
with the coffee, F&B staff can be trained to recognise suitable extras that can be
added to the order.

The suggestions need to sound genuine to be credible. In order to sound genuine,


it should sound enthusiastic.

All the above would fail if not communicated adequately.

6.3.5 Know thyself


Communication is imperative to the sales techniques. They are only effective
when sounding genuine. So, F&B staff should be encouraged to be enthusiastic
when making suggestions. Enthusiasm is communicated not only verbally but
mostly via body language. Maintaining eye contact and having a genuine smile
convey passion, focus and interest. Projecting passion reinforces the underlying
assumption of a trustworthy and knowledgeable professional. The language used
can also reinforce this notion: rather than describing a dish as ‘nice’, descriptive
and expressive adjectives such as ‘delicious’ could be used.

However, choice of words alone does not tell the entire story. The tone of
voice should sound engaged to give the impression of being captivated by the
storytelling. Customers resonate well to sincerity because it encourages to lower
their own circumspection, feeling closer to their own emotions and more inclined
to treat themselves.

6.4 Oversell
Copyright © 2019. Taylor & Francis Group. All rights reserved.

A manager should always be mindful of where sales techniques fall on the priority
list. If sales techniques take precedence over customer service, this will certainly
result in a negative customer experience.

As mentioned, at its core the sales techniques aim at enhancing the customer
experience not exploiting it. Sales techniques should be balanced with the
customer experience.

Again, training is one of the tools to correctly inform and prepare F&B staff to
listen well and ask the right questions. If F&B staff take time to learn about

Martin, Adrian. The Practical Guide to Understanding and Raising Hotel Profitability, Taylor & Francis Group, 2019. ProQuest Ebook
Central, [Link]
Created from bournemouth-ebooks on 2022-12-09 [Link].
56 Food sales
their customers’ needs, and only offer products which truly meet their customers’
needs, then customers will feel they have received a great customer service
experience.

6.5 Menu positioning


To help boost sales techniques (besides training, which in order to be successful
requires to be tailored to the employees and delivered consistently) the manager
can use appropriate menu design.

For example, complementary items can be placed next to each other on the menu,
or an underline could signify complementarity. High profit items can be enhanced
by placing an image next to them, or can be placed below the most expensive
items. It has been shown that customers choose the second most expensive wine
to avoid appearing ‘cheap’. Customers who order expensive wines are bound to
order bottled mineral water rather than tap water – again by skilfully placing
expensive wine at the end of a section where the next item is bottled mineral
water can help increase sales – it’s called the ‘nudge’ effect whereby nudging the
customer to decide something you want them to choose, by the options you have
provided.

6.6 Conclusion
Being able to say the right things at the right time is only part of the story. Sales
techniques can be developed, and practice is paramount to becoming better at it.

Perseverance and resilience lead to the delivery of the perfect pitch that can
ensure the long-term profitability of the F&B department. Even silence can be
conducive to a successful sale – indeed silence can sometimes say more than
words, as demonstrated in the extract, below:

Waiter: Hello sir, what can I get you?


Customer: Hmm … I’ll have the pie please.
Copyright © 2019. Taylor & Francis Group. All rights reserved.

Waiter: Certainly, sir.

Whereas, an experienced waiter interprets the pause (the ‘Hmm …’) as a


sign of hesitance and promptly intervenes to seize control of the service
experience by introducing the customer to an item they would not have
originally considered. In this instance, the customer interaction would
sound more like this:

Waiter: Hello sir, what can I get you?


Customer: Hmm …

Martin, Adrian. The Practical Guide to Understanding and Raising Hotel Profitability, Taylor & Francis Group, 2019. ProQuest Ebook
Central, [Link]
Created from bournemouth-ebooks on 2022-12-09 [Link].
Food sales 57

Waiter: Perhaps I may suggest something for you? The steak is my


personal favourite, with some green beans and a glass of Rioja ...?

Alternatively, if the barman has missed the ‘Hmm …’:

Waiter: Hello sir, what can I get you?


Customer: Hmm … I’ll have the pie please.
Waiter: Absolutely sir. Would you like any side orders to go with that,
perhaps some green beans?
Copyright © 2019. Taylor & Francis Group. All rights reserved.

Martin, Adrian. The Practical Guide to Understanding and Raising Hotel Profitability, Taylor & Francis Group, 2019. ProQuest Ebook
Central, [Link]
Created from bournemouth-ebooks on 2022-12-09 [Link].

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