Research On Cost Control Of Star Hotel Catering Department—The GDHT Hotel As An Example

In the past thirty years,the high-speed development of Chinese economy has driven a boom of service industry growth,leading to constant rise of hotel business,as an important department of service industry.This means improvement of domestic consumption and life quality,and also a series of complex and diverse problems for this young industry.On the one hand,hotels has continued to launch fierce price competition to get more market share,resulting in decline in industry profit;on the other hand,since The Eighteenth National Congress of the CPC,public consumption has been limited by unprecedented regulations,that is a serious blow to the hotel industry.Facing adverse impact on the turnover,hotels have to choose effective cost control as the way of maintaining smooth development.As the largest source of cost,food and beverage sector has always accounted for the focus of cost control,therefore,reflecting its management ability and indicating competition power.First,the cost control of the food and beverage sector is related to the operation efficiency of the catering department.Profit margin is inversely proportional to the lower cost,and vice versa;secondly,the cost control means ability to satisfy consumer need with more affordable products or lower price;And finally,the cost of food and beverage sector is related to the overall profitability of the the hotel.Revenue from food and beverage revenues mostly account for nearly half of the hotel’s total revenue,so the quality of its operations determines the overall operation of hotels directly.Therefore,whether for protecting the interests of the catering sector itself,or for the long-term development of the hotel,its cost control has to be put on a more important position in agenda.This paper first reviews the research status of cost control in China and abroad,and then summarizes the concept,classification and all related theory about cost control.The core content of this article is generalizing the connotation of cost control of catering department in hotels through the analysis of the case of GDHT Hotel(a four star state-owned hotel).Based on the operational data of the food and beverage department in 2013-2016 years,all aspects of the cost control are involved:the procurement,warehousing,kitchen processing,sales and receivables,labor cost,etc..And then,the article carried on a detailed analysis and summarized the current situation of hotel cost control management,the cost accounting method,internal control measures,attention to the importance of cost control from management,pointing out problems in each link of cost control:high procurement and warehousing costs;lack of supervision on kitchen processing;unreasonable expenses on labor cost,etc..In the last part,the paper analyzes causes of those problems,and put forward a series of improvement measures,in order to provide some useful countermeasures and suggestions to the hotel management.