Banquet Operation and administration
Banquet Operation and administration services include – Event Forecasts & Reports, Revenue compared to budget, All cost expenditures, Account, Audit and Control, Banquet Income, Revenue, Payment Arrangements, Types of Payment Statements, Deposits, Balance Payment ,Payment Settlement, Cash bar, Master bill, Expenses, Music and Entertainment, Mechanical work and Equipment, Interest, Commissions, Salvage and general Policies.
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Event Forecasts & Reports
The 10-Days Monthly Forecast Report on Banquet Operation
Monthly forecast are produced to assist the Banquet Operation and F&B Department in establishing the budget, for the Executive Chef to order food, and for the Banquet Manager/F&B Team responsible to follow-up on the event.
In addition, a 10-days forecast is to be distributed to the Department Heads. Furthermore, the monthly report is to be distributed to the GM/RM/EAM and to all Department Heads concerning its monthly forecast, estimated revenue and budget.
The monthly report is to be distributed to the GM/ RM/EAM and shall contain the following:
– F&B Sales compared to budget
– Room Sales compared to budget
– Other Income compared to budget
– All cost expenditures
– Covers compared to budget
– Additional remarks
Account, Audit and Control for Banquet Operation
Sales in connection with banquets, private parties etc. should accounted for in the respective selling departments. Sales of goods and services not sold in the ordinary course of business by any selling department of the hotel, except in connection with banquets, may be accounted for in accordance with one of the following methods:
Credit to the various expense accounts: If such sales are only occasional, or if the profit on them is negligible or not practically determinable, the sales should be credited to the various expenses accounts to which the cost would be naturally charged.
For example; under this method, an occasional sale of music would be credited to music and entertainment and an occasional sale of flowers to decorations/Florist.
The cost of goods and services sold in connection with banquets which are not regularly sold by any department and are not applicable to any specific expense items in the food schedule, should be charged to banquet expense and the relative sales credited to the same account.
Credit to ‘Other Banquet Income’: If the ‘Other’ sales in connection with banquets are of sufficient importance to make it desirable to determine the profit on such sales, accounts should be opened in accordance with this schedule. The profit on such sales should be carried over to the food schedule as ‘Other Banquet Income’.
Each function is a separate occasion. It has its own price, menu and manning. It must be closely controlled, especially when food production takes place in a separate kitchen and bar. The revenue and the direct costs can be ascertained with accuracy. The main records include:
– A function agreement, which summarizes the arrangement for each function.
– A function diary, which lists details of all functions in date order.
– A function chart, which provides a visual record of all functions arranged for a period ahead.
– In-house information and restriction list.
The revenue and the direct costs can be ascertained with accuracy. The volume of identical meals prepared and served together enables the Hotel/Resort to have higher profit margins; as such functions represent the second most profitable hotel product after rooms.
Banquet Operation Revenue
The various sources of revenue and cost of banquets are:
– Food and Beverage
– Music and Entertainment
– Mechanical work equipment
– Other labour
– Printing and Stationary
– Souvenirs and favours
– Rentals of equipment
Types of Payment Statements (Bill)
– Food bill/payment statement
– Beverage bill/payment statement
– Miscellaneous bill/payment statement:
– Room rental
– Equipment rental
– Miscellaneous Charges
Deposits system in Banquet Operation
A deposit must be requested and paid prior to the event (amount of days is depending on the contract agreement). The balance is to be paid upon departure of the group, unless otherwise agreed/stated or contracted.
When a group confirmation is made through the responsible Sales person to its client a ‘Function
Order’ is to be issued and send to the Finance Department for debit note issuance. Upon receipt of the deposit, a deposit receipt record is sent to the respective Sales person confirming receipt of deposit.
For clients/Corporate accounts requesting no deposit, the Sales person may receive authorization and approval from the Dir. of Sales & Marketing. For trusted accounts, the Sales Department and the Finance Department can mutually agree and continuously update a list of credit accounts for waiving requirements of prepaid deposits.
All F&B functions and Banquet Operation information shall be settled by cash or credit card upon departure. Cheques are not accepted for settlement of F&B expense unless prior approval has been given from the Director of Finance.
For improved customer service, billing after departure may be granted to credit worthy and trusted client accounts. In such case, a letter/fax/email of authorization is to be received in advance from the client to confirm expenses that are covered on its company account. Payments received for F & B expenses should be recorded on a control list and passed to Finance Department for receipt issuance and recording.
Cancellations for Banquet Operation
For functions where a deposit has been received, the deposit is refunded only if the cancellation was made (xx) days prior to the actual function date (depending on contract agreement and policy). For any cancelled group/account, a lost business report is to be filed.
Payment Settlement for Banquet Operation
-For cash settlement; the Banquet Manager/Supervisor shall return (to the cashier for posting), the original and signed copy of the payment statement, while the account copy is retained by the cashier.
-For city ledger charge; the signed check is given to the cashier for posting and all copies retained by the cashier.
Banquet Operation Master bill
The master payment statement must be prepared by the person in charge of the function and is settled either by cash or by credit card. For credit card payments; the cashier shall check the outstanding balance and request approval from the credit card company.
If the guest is to sign the payment statement, it shall include:
– Billing address
– The person authorized to sign the master payment statement
– The amount of advance deposit received
The payment must be received within (xx) days (depending on the contract agreement or the hotel’s/resort’s policy) corresponding to the date of invoice.
Expenses for Banquet Operation
Music and Entertainment
– Music and Entertainment hired for banquet purposes. Decorations
– Cost of flowers, plants and decorations purchased for banquet purposes and charged to banquet engagers. If, however, the hotel/resort operates a florist department, the sales and cost of flowers, plant and other decorations furnished by the florist should be credited and charged, respectively to that department.
Mechanical work and Equipment
– Setting up and removing of stages, scenery, specific electric wiring, spotlights, moving pictures projectors, PA and A/V equipment, material and labour furnished by the mechanical department.
There are other sources of Hotel/Resort income which is not connected directly with the operational activities.
All these Banquet Operation incomes are received in small amounts from different heads:
Rentals – Space used for the operation of a hotel as a part of usual hotel service. Rental received from these are credited to Rental Account.
Some of these are sub-heads of income:
Office Rentals/Rent from Clubs/rent from lobby space, show case and other spaces. Concessions
Revenue received from outside for the privilege of operating departments which might be operated by the hotel itself as part of the usual hotel/resort service. Expenses to the hotel/resort in connection with the operation of a concession service which would be charged as departmental expenses. If the department were operated by the hotel, should be charged against the income received from the concessionaire are credited to this account.
Some of the sources of revenue of concessions are:
Barber shop/ Beauty shop/ Cigars and news stand/ Gift shops/ Guest laundry/ Restaurants/ Swimming Pool, Baths/ Transportation/ Valet/ Foreign Exchange/ Casino.
The hotel/resort earns interest on bank deposits and other investment of spare funds. Foreign Exchange
Foreign currency and traveler’s cheques are normally exchanged by hotels for guests at rates more favorable to the hotel than those offered by banks to safeguard against fluctuations in rates between their encashment by the hotel an their sale to the bank, and sometimes to include simply a charge for the service provided.
Commissions and Banquet Operation
The following incomes received as commissions are credited to this account:
-Commission from taxi and care hire/ Garage and Parking Lot/ auto rentals/ radio and TV/ Photographers/ Theatre and travel agencies and other suppliers to guests.
Vending Machines at Banquet Operation
The revenue derived from vending machines less the cost of the merchandise sold is directly credited to this head.
Cash discount earned
All discount earned from creditors due to cash payment within the discount period are credited to this account.
It includes revenue derived from the sale of waste, paper, bottles, cans, incidental articles, obsolete material and used cooking grease.
‘Other’ incomes which can not be grouped under any of the above heads are credited to this account
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Few general Policies for Banquet Operation
Banquet Operation Car park Policy
Car park for banquet clients are normally offered “Free of charge”. Parking tickets might be needed, stamped to validate the ticket. The stamp is placed on the registration desk in front of the function room of each function.
In case of large functions, such as wedding parties etc. which requires sufficient parking lots, the car parking requirements are listed on the ‘Function Order’.
Banquet Operation Uniform Policy
– F&B department issues a uniform request form to linen & uniform department/HK.
– Each employee collects one set of uniform. The laundry records names.
-Employee is held responsible for his/her uniform. Unnecessary damage is charged to the employee concerned.
-Soiled uniform has to be exchanged daily according to the opening hours.
-Linen room attendant records items received onto the daily uniform exchange sheet.
-In case of emergency after the official opening hours, Duty Manger is to be contacted; urgent requests are recorded in the linen room Supervisor log book. All items shall be returned the next day.
Banquet Operation Linen Policy
-Soiled linen must be exchanged daily according to the opening hours.
-Linen exchange for banquet takes place according to the opening hours. In case of emergencies after the official opening hours, Banquet Manager/Supervisor/Captain must inform the duty Housekeeper in charge. Urgent requests are recorded. Request items are returned the next day.
-Banquet associates pre-count all soiled linen before returning to the linen room/attendant for re-count and exchange. Linen room count column on the exchange list is completed by the Linen Room Attendant.
-Final comparison of banquet and laundry in exchange sheets. Derivation is remarked and to be received after cleaning and pressing is finished.