SHG COST CONTROL

What SHG can do for your cost control?

SHG employs a comprehensive cost control concept to effectively manage expenses, particularly in the Food & Beverage (F&B) department of the hotels. Here's an explanation of SHG's cost control approach:

1. Menu Engineering

- SHG conducts menu engineering to optimize the profitability of F&B offerings. This involves analyzing the popularity and profitability of menu items, adjusting pricing strategies, and strategically promoting high-margin items.

- By identifying cost-effective ingredients and optimizing portion sizes, SHG ensures that menu items deliver maximum value without compromising quality.

2. Procurement and Vendor Management

- SHG implements rigorous procurement processes to source high-quality ingredients and products at competitive prices.

- Through strategic vendor negotiations and contract management, SHG secures favorable pricing terms and leverages economies of scale to drive cost savings.

3. Inventory Management

- SHG implements robust inventory management systems to track and control F&B inventory levels effectively.

- By optimizing inventory turnover rates, minimizing waste, and identifying opportunities for bulk purchasing, SHG reduces carrying costs and improves overall efficiency.

4. Operational Efficiency

- SHG emphasizes operational efficiency in F&B operations, streamlining workflows, and optimizing staffing levels to minimize labor costs.

- Through efficient scheduling, cross-training, and performance monitoring, SHG ensures that F&B staff members are utilized effectively and productivity is maximized.

5. Cost Monitoring and Analysis

- SHG continuously monitors F&B costs against budgeted targets, identifying variances and implementing corrective actions as needed.

- Regular financial analysis and reporting provide insights into cost trends, enabling proactive decision-making and adjustments to cost control strategies.

6. Training and Compliance

- SHG provides ongoing training and support to F&B staff members, emphasizing cost-conscious practices and compliance with established procedures.

- By promoting a culture of cost awareness and accountability, SHG ensures that all team members are aligned with cost control objectives and contribute to overall success.

Through these strategic initiatives and meticulous attention to detail, SHG effectively manages F&B costs, maximizing profitability, and enhancing the financial performance of the hotels under its management.

Our Fees

At SHG, we offer a unique and results-driven approach to cost control missions, aimed at optimizing operational efficiency and maximizing savings for our clients. Our fee structure is designed to align our interests with yours, ensuring that we are fully invested in delivering tangible results and measurable value.

Under our cost control mission model, our fee is calculated as a percentage of the money saved through our cost-saving initiatives. Specifically, we operate on a performance-based fee structure, where our compensation is determined as a percentage of the total cost savings achieved by our efforts.

Here's how it works:

Upon engagement, we conduct a thorough analysis of your operational expenses, identifying areas where cost savings can be realized without compromising quality or service standards.
We then implement targeted cost-saving strategies and initiatives, leveraging our expertise and industry insights to optimize your operational processes, streamline workflows, and negotiate favorable terms with vendors and suppliers.
As these cost-saving measures are implemented and the savings are realized, our fee is calculated as a percentage of the total amount saved.
Our fee is typically structured as 50% of the money saved, providing a fair and transparent compensation model that incentivizes us to deliver the maximum possible savings for your organization.

This fee structure ensures that our interests are fully aligned with yours, as we are motivated to achieve the highest possible cost savings on your behalf. By sharing in the savings generated through our efforts, we demonstrate our commitment to delivering measurable results and driving tangible value for your business.

Reasons to choose SHG

High food costs are a common challenge faced by many establishments in the hospitality industry, often stemming from various factors such as theft, waste, inefficient inventory management, and lack of cost control measures. These issues can significantly impact a restaurant's profitability and overall financial health. However, with SHG's expertise and proactive approach to food and beverage management, these challenges can be effectively addressed and mitigated.

Theft:
- One of the primary reasons for high food costs is theft, whether it's employees pilfering inventory, unauthorized discounts, or fraudulent practices at the point of sale. SHG implements stringent security measures and controls to prevent theft, including surveillance systems, inventory audits, and strict access controls. By fostering a culture of accountability and transparency, SHG ensures that theft is minimized, and inventory is safeguarded.

Waste:
- Another significant contributor to high food costs is waste, including spoilage, overproduction, and improper portioning. SHG implements waste reduction strategies, such as inventory tracking systems, standardized recipes, and staff training on portion control and food handling best practices. By optimizing inventory levels, minimizing overproduction, and maximizing product utilization, SHG helps minimize waste and improve cost efficiency.

Inefficient Inventory Management:
- Inadequate inventory management practices can lead to excess inventory levels, stockouts, and inventory shrinkage, all of which contribute to higher food costs. SHG implements advanced inventory management systems and procedures to ensure accurate tracking of inventory levels, timely replenishment, and optimal stock rotation. By maintaining optimal inventory levels and reducing carrying costs, SHG helps improve cost control and operational efficiency.

Lack of Cost Control Measures:
- Without robust cost control measures in place, food costs can quickly spiral out of control. SHG implements comprehensive cost control measures, including regular cost analysis, budgeting, variance tracking, and menu engineering. By closely monitoring food costs and identifying areas for improvement, SHG helps identify cost-saving opportunities and implement corrective actions to maintain profitability.

With SHG's proactive approach to food and beverage management, establishments can expect significant improvements in cost control and operational efficiency. By addressing the root causes of high food costs and implementing tailored solutions to prevent theft, waste, and inefficiencies, SHG helps ensure that food and beverage costs are maintained at optimal levels. With SHG as a trusted partner, establishments can rest assured that their food and beverage operations will be well-managed and profitable for years to come.