Benchmarking, 4 steps
- Understand in detail your own processes
- Analyze the processes of others
- Compare your own processes and performances
- Implement the steps necessary to close the performance gap
“Continual Feedback”, Policy Reinforcement = Price variations
Company general targeted financial objectives -> Financial, marketing, catering (basic policies) -> Overall budget (basic gross profit margin) -> Individual departmental budget (gross profit margins) -> Indi departmental differential profit margins -> Special pricing considerations
Investigate your market?
- Visit restaurants (above/ below)
- Study how they buy wine
- Obtain a copy of their wine list
- How well their staff serves it
- Observes how many bottles of wine are on the tables
Distributors offer help
Contact suppliers, explain objectives
- Suggest a hypothetical wine list
- Suggest ways of merchandising and promotion
Storage capacity
- Temperature
- Minimum of light
- No vibration
- Does it allow room for shelving?
- Accessible the wine to the service personnel
- Carte du jour: daily stock
- par stock
Preferences
- USA: 75/80% local, 20/25% imported
- France: 90% domestic, 10% imported
- Type of wine: red, wine, rose
How long should be your wine list?
- Determine your needs
- min number of references allocated:
+ above 50 covers/ total number of seats divided by 2
+ below 50 covers = no rule! - Customers to know that wine matters
Proportion of red to white
Location: - sea side: 1/3W - country side: 2/3R - mountain side: 1/3W Specialties: meat, fish, fondue, etc
Budget
% moderately price, highly priced, low priced
Capital investment
- Inventories 30 days or 60 days
- long-term investment -> larger budget
Pricing
Drink = 1/2 Food price
- Wine by glass = Price of bottle / 5
- Going over 10% establish business as Restaurant with theme
How to analyze wine list with the following factors
- Number of bottles sold per customer (bottle/ customers)
- How much white to red (%)
- Average price per bottle sold in a certain period of time (between inventories)
- > top 10 famous
- > instruct staff to report any requests for wines not on the list
Why inventory? (must know)
- Control stock
- Establish data
- Reorder level
Grid group Analysis
x-axis: Number of Sales in Period (Time gap and inventory)
y-axis: Gross profit contribution or if fixed markup
psychological one| targeted ones|over priced ones| ? = ?
