In the food-and-beverage arena, it’s not always easy to understand the value and impact of a single dollar. But spending a dollar here, rather than spending it there, can make an enormous difference to a hotel’s top and bottom lines.
To generate profits, hoteliers need to spend money the right way. That means selling one menu item at a higher price to have a better top line while selling more of another item at a lesser price to be profitable. Each menu item has a specific effect on the business; just because costs are in line and expenses are under budget, it does not mean that the operation is making money.
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