Title: Analyze the contribution of catering sales and food and beverage to lodging profitability.
Course: Lodging Management (12159) > Section: Performing Food and Beverage Functions

Analysis should include

- the effect of catering sales on the total food and beverage profit margin
- profit expectation target of at least 45 to 55 percent
- reasons for profitability (e.g., room rental and audiovisual rentals, lower food costs, and guarantees that assure payment for contracted number of guests).

Process/Skill Questions:

- How are food costs compiled?
- What factors ensure high profitability in the catering department?
- Why are timely guarantees important to the catering department?
- What would happen if food costs were not closely monitored?
- Where is the real profit made in food and beverage?
- What is a guarantee?
- How does a lodging decide which events to book?
- What other departments work with the catering department to ensure an event’s success?