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“F&B cost control is key factor in determining profit”
Monday, 24 September, 2012, 08 : 00 AM [IST]
Foodesign Hospitality Systems (FHS), a company known for conducting food & beverage operational audits in the hospitality industry, has embarked on an aggressive growth trajectory. H A Mishra, CMD, FHS, explains to FNB News, how the company is working towards its growth goals, by strongly focussing on enhancing profits for clients in a guaranteed time-frame. Excerpts:

What is the advantage of having an external food cost auditor over an internal food cost controller?

As an external agency, we are completely independent and non-biased. We have no friends and no enemies in the company but we are armed with technology that has been tried and tested over a long period of time. We also have no pressure from the management to provide instant results. Most of all we have the right experience and core competence in this field. Typically, we audit the complete cycle of F&B operations that covers more areas and functions in comparison to what an in-house food cost controller normally handles. We provide 100% guaranteed results in a predetermined time with no compensation on quality & quantity.

How important are cost control measures in times of economic slowdown and profit-pinching operation costs?

In these times of higher tax structure - licence fees, entertainment tax, service tax – F&B outlets, whether standalone or within hotels, are struggling to maintain their profit levels. The only way they can do is to keep their costs low. The current situations make it imperative for every F&B outlet to hire an external agency like us who will help them enhance their profits without any additional investments within a stipulated time- frame.

The top three priorities in today’s hospitality industry are ‘Sales, Staff and Cost Control.’ One needs to have a stronghold on all three aspects to be successful in the F&B business. We have the technology, expertise and experience of cost control, which can be monitored on a daily basis from our office. We sincerely believe that money saved is money earned.

Any outlet irrespective of its size must keep its costs in check. Cost cutting is the mantra, keeping the sustenance of quality levels in focus. Quality should never be compromised, but pilferage should be reduced. Effective measures are required to counteract such problems, which will help restaurateurs to invest their business revenues into expansion.

What makes you different from other players in the industry?

FHS is only one of its kind company in this segment providing 100% success rate to its client in all segments of hospitality. What we bring to the table is knowledge of the domestic market, operational efficiencies, a good sales and marketing (S&M) network, minus the high cost of hiring an international hotel management company to run the business. We at FHS, have a unbeaten record of pulling out people & organisations out of distress and putting them back on the growth chart within a guaranteed period of time without any additional investments. Our exhaustive experience in this industry, state-of-the-art technology makes us a preferred choice by all our clients and industry stalwarts.

FHS gives guaranteed result in stipulated period of time with no compromise on quality, quantity with no additional investments. We set to achieve a clean & corrupt-free atmosphere in organisations with our unbiased approach and commitment.

Why does hospitality industry need to take F&B cost control as a vital operation?

F&B cost control is one of the major factors determining the profit or loss of a hospitality unit. The hotel management institutes in India don’t teach the students about controlling the quality and cost of food and beverages. F&B cost controlling needs to be taken with more penchant and severe gravity. A serious hotelier should never allow this segment to go unnoticed and has an important role in enhancing the profitability of a business operation of the industry needs to be taken more seriously.

We at FHS provide a scientific approach to reduce the operation costs through our daily audits which lead to timely corrective measures. We instigate a change in the culture of the organisation that brings out a sustained profit levels.

What are the future plans of the company?

FHS has embarked on an aggressive growth trajectory. We will soon be launching some of the most advanced and innovative services in the area of F&B Cost Management. We shall soon be handling more than 300 outlets in next three years globally in all sectors of the hospitality and food service industry. At present, we are auditing and rendering cost management services to nearly 90 units worth Rs 350 crore which and expects to audit business worth Rs 3,000 crore in the next three years, as the number of outlets scale up.

What are your expectations from FHRAI’ 12 convention?

FHRAI is an apex organisation for hotel industry and the annual convention is an ideal platform for networking and discussing the issues that need immediate attention.

The focus for this year’s convention will be Employment Generation: Engine of Inclusive Growth. We at FHS share the same belief that employees are an asset for an organisation. FHS has acted as a catalyst in growth of many hotel employees during its association with them. Generating profits for hotel outlets breed appreciation for employees and the managers who make a steep progress in their careers. This is possible because of our efforts and their cooperation which aids in enhancing the profits of the organisation besides producing rewards.

Concurrently, the industry is plagued with a high attrition rate. The systems are suffering because trained people are leaving leading to ineffective use of the systems and hence heavy costs incurred by the organisations. This is where the need of an external F&B operation cost controller like FHS arises. We make sure that the processes are uniform irrespective of the employee turnover, enhancing the profit levels of the organisation by maintaining the operation costs.

Hence, we look forward to build more awareness about our niche services through this convention which in turn will lead to more employee retention.
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