Banquet Revenue Control

Objective ：

To maximize banquet revenue by ensuring that all banquet functions are properly accounted for and charged accordingly.

Procedure：

1. All tentative and confirmed functions must be documented in a “Function Book”. Cancelled functions must be erased or noted to prevent the unnecessary denial of business.

2. The Banquet Manager will maintain the “Function Book”. The purpose of the Function Book is to provide a permanent record of all functions.

3. The following information must be included in the Function Book for tentative bookings, recorded in pencil:

• Name and address of the party (group, company, etc.) 

• Method of payment, rate quoted and set-up requirements.

4. When the function is confirmed, the information concerning the function (including event order number) will be entered into the Function Book in ink.

5. A signed contract, deposit or form of guarantee should be obtained for all banquet functions. Contracts should be executed in accordance with the hotel’s credit policy. The Director, Finance & Business Support must approve any deviations from the standard contract.

6. All individuals and groups with functions to be billed on account must have prior approval by the credit department.

7. A numbered Event Order will be prepared for each function. Information on this form will be basically the same as that recorded in the Function Book, except that greater detail is provided concerning the detail menu items, prices, minimum covers, miscellaneous charges, service and equipment requirements, entertainment gratuities, etc.

1. The Event Order will be in multiple copies for distribution to all relevant departments (chef, F&B director, Chief Steward etc.) for planning and scheduling of employees. A copy must be forwarded to the finance department to allow comparison with the final banquet bill. All amendments on changes of the Event Order must be numbered with reference to the original and similarly circulated.

2. An Event Order must be nominated the master. Likely, the master Event Order will be retained by the captain/manager overseeing the event. The master Event Order will record all amendments i.e. number of covers consumed, menu items etc.

3. Beverage accountability forms should be completed for all banquets. The forms should indicate the type of beverage, opening stock, closing stock, consumption and sales.

4. Banquet bills should be raised on the same day as the function, or the following day for late night functions. He guaranteed number of guests or the actual number present, whichever is the greater, should be charged.

5. All items on the Event Order, and amendments to the Event Order and incidentals, such as telephone calls, should be appropriately charged. If management chooses to waive a charge, there should be adequate documentation to support the decision.

6. The Income Auditor is responsible to verify and match all banquet bills posted against the Event Order to ensure that all revenue are properly recorded. Any deviations should immediately be followed up with the Banquet Manager and notify the Director, Finance & Business Support.

7. The copy of charged Banquet bill together with the respective Event Order should also be sent to the Executive Chef the day following the function for his verification on the accuracy of these revenue figures, evidenced by his signature on the charged bill.

8. After the verification by the Executive Chef, the copy of charged bill and Event Order should be filed and maintained by the Income Auditor in date sequence. A Control Sheet showing Event Order number and date should also maintain as cross-reference.

9. Periodically the Income Auditor should verify the Function Book against the Event Order in his file to ensure that all confirmed banquet events were charged, evidenced by his signature with date on the Function Book.

10. The Cost Controller is responsible to verify and reconcile the Function Requisition and Return Sheet against the Banquet Guest Bill, and to prepare the profit and loss statement for each Banquet Function for management review.

1. Food cost for each function should be made based on the storeroom issues and inter-kitchen transfers. Event Order with food cost over 40% should be reported to the Executive Chef and F&B Director for proper explanation.

The above policy will be reviewed periodically and may be revised, amended or changed accordingly