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Essay / Research Paper Abstract
This 4-page paper covers the importance of beverages in food operations for boosting the bottom line and helping sales. Bibliography lists 3 sources.
Page Count:
4 pages (~225 words per page)
File: D0_MTfoodbeve.rtf
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Unformatted sample text from the term paper:
type of restaurant or hospitality organization, are served decoratively. But in the area of drinks, both hard and soft, sometimes things are lacking. Sometimes beverages, as theyre called, are ignored
in favor of the food side of the operation. Experts point out, however, that doing so can cost profits. Focus on food
over beverages can cost more money. By the same token, putting more focus on beverages can help cut the costs. In one survey, it was found that 28% of fine-dining
restaurants noted that alcoholic beverages account for 25% to 49% of total revenues (Shea, 2006). This is an area that needs to be nurtured.
For example, labor costs are lower for beverages (Nations Restaurant News, 2000). While a meal requires a server, busperson, expediter and dishwasher, as well as a prep cook
and line cook, a drink requires one thing -- the bartender (Nations Restaurant News, 2000). According to one expert, "you have 5% of a restaurants labor doing 20 to 25
percent of the sales for 20 to 25 percent of the profit" (Nations Restaurant News, 2000). Additionally, people dont mind paying a
little more for premium drinks (Nations Restaurant News, 2000). This is the case for alcoholic drinks, but it can also apply to softer beverages as well. With the many sodas
and fruit drinks available, those not wanting alcoholic beverages will buy such drinks, meaning more profit for a restaurant that has a bar component to it (Nations Restaurant News, 2000).
Furthermore, many food operations and restaurants are finding that improving margins are easier than raising customer counts or menu counts as a
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