Cost Optimization: A Strategic Approach to Sustainable Food & Beverage Profitability Growth
Md. Shakawath Hossain
In the Food & Beverage business, sustainable growth is not achieved only by increasing sales. It also depends on protecting every point where cost can leak, value can be lost, and profitability can be weakened. Cost optimization is therefore not only a financial practice, but also an operational innovation that every hotel should consider adopting to build discipline, reduce waste, improve efficiency, and strengthen long-term business performance.
Unique Hotel & Resorts PLC, the owning company of The Westin Dhaka, Sheraton Dhaka, and HANSA – A Premium Residence, follows a structured six-control-point model for Food & Beverage cost optimization. The six-control-point model was innovated and implemented by Md. Shakawath Hossain, CEO of Unique Hotel & Resorts PLC, as a practical approach to strengthen operational discipline and improve profitability across the company.
Through this disciplined approach, the company saves approximately BDT 2 crore every year from operational costs. The six control points are purchase control, inventory control, right transfer, portion control, appropriate cooking, and wastage control. Together, these areas create the foundation for better food cost, stronger accountability, improved guest satisfaction, and sustainable profitability.Purchase control is the first line of protection. It must focus on three important factors: time, economy or bargaining power, and quality. The purchase team must ensure that the right product is purchased at the right time, at the best possible price, and from reliable suppliers without compromising quality. Proper market comparison, supplier evaluation, negotiation, and purchase planning are essential. Poor timing, weak bargaining, over-ordering, or accepting low-quality products can immediately affect both profitability and guest experience.
Inventory control is equally important because every stored item represents money. The finance department, receiving team, store team, cost controller, and chefs must ensure that products are properly received, recorded, stored, and monitored. FIFO, meaning First In, First Out, should be followed strictly so that older stock is used first and expiry is reduced. Dry food must be stored in a dry place, while cold food must be stored at the right cold temperature. Improper storage damages quality, increases spoilage, and creates unnecessary loss.
Right transfer ensures that products are moved correctly from store to kitchen, kitchen to outlet, outlet to event, or one department to another. Before any transfer, stock must be checked, requirements must be validated, and the team must understand how many people will be served and how much food should actually be prepared. For instance, when food is arranged for 500 guests, it should not be assumed that every guest will consume every item equally. A dynamic consumption approach should be followed, where the team studies guest behavior, item popularity, meal period, and expected consumption. Based on this understanding, some items should be prepared in higher quantity and some in lower quantity. This helps avoid both shortage and wastage.
Portion control directly affects profitability and consistency. Even a small difference in portion size can create a major cost impact when repeated across hundreds of covers. Chefs and F&B service teams must maintain standard recipes, correct plating, buffet portioning, and consistent serving sizes. The objective is not to reduce guest satisfaction, but to ensure that every guest receives the right quality, quantity, and experience while the business protects its margin.
Appropriate cooking is another critical control point. Overuse of ingredients, spices, and oil can lead to food wastage and inconsistent taste. This often happens when the right equipment, heating temperature, cooking method, and ingredients are not used. Chefs must follow standard recipes, maintain correct cooking temperatures, use proper equipment, and plan production carefully. Good cooking control improves taste, presentation, food safety, and cost efficiency.
Wastage control is one of the most important areas in Food & Beverage cost optimization. The team must carefully assess whether it is a weekday or weekend, the relevant meal period, the expected guest profile, and the crowd forecast for the day. Since weekends are usually more crowded and weekdays may be slower, cooking must be planned accordingly. Historical footfall should be reviewed before production, and food should ideally be prepared with a plus or minus 10 percent adjustment based on forecasted demand.
Food temperature must also be maintained properly to protect quality and safety. In buffet operations, portion control is essential so that guests do not take excessive food that later becomes waste. Once a meal period ends, such as after buffet service, soup and cold items should be discarded if they are no longer safe for consumption. Food that is still suitable for immediate consumption may be distributed to the staff cafeteria. However, previous buffet food must not be served again in the next buffet. Every new buffet must begin with fresh food and fresh ingredients.
For a strong outcome, every business must have a clear understanding of its cost structure. Certain expenses, such as heat, light and power, salaries and wages, operational costs, membership royalty fees, Buy 1 Get 1 offers, and credit card charges, are largely fixed or unavoidable components of regular business operations. In this structure, food cost remains the only major cost area with meaningful scope for reduction. This is where the six-control-point model creates its strongest impact by improving efficiency, reducing waste, and protecting profitability.
Among the six control points, three areas are mainly driven by the finance side: purchase control, inventory control, and procurement-related control. The remaining three areas, portion control, appropriate cooking, and wastage control, are mainly the responsibility of chefs and kitchen leadership. However, success depends on teamwork. The purchase team protects price, supplier quality, and buying discipline. The receiving team protects quantity, quality, and documentation. The cost controller monitors usage, transfers, variance, and reporting. Chefs protect recipe standards, portion control, production planning, and wastage. The F&B service team protects guest experience, buffet control, and service-related consumption. Stewarding supports hygiene, equipment handling, and waste reduction, while security helps control unauthorized movement.
Above all, HODs, Executive Chef, Cost Controller, ExCom, General Manager, and above property leadership must supervise, review, and ensure accountability across the system. Cost optimization cannot be achieved by one person or one department. It must be practiced daily, monitored regularly, and measured through clear financial outcomes.
Cost optimization must also be supported by menu engineering. Every menu item should be reviewed based on popularity and profitability. High-profit and high-demand items should be promoted. Popular but low-margin items should be reviewed. Profitable but low-selling items need better presentation or marketing, while weak items should be improved or replaced. This helps protect both guest preference and financial return.
At the same time, cost control should never damage Food & Beverage reputation. Guests remember food quality, service, ambience, location, value for money, safety, convenience, and word of mouth. The objective is not to spend less blindly, but to spend wisely while protecting the guest experience.
Ultimately, the six control points are the foundation of a sustainable Food & Beverage business. Hotels must also move toward a farm-to-plate approach, where fresh produce such as food items, vegetables, and fruits are sourced locally based on seasonality. Even imported items should be reviewed to see whether they can be produced locally through collaboration with farmers, proper guidance, and awareness. By encouraging local production, hotels can reduce dependency on imports, improve freshness, support farmers, and strengthen long-term cost efficiency.
Cost optimization is a culture of discipline. When purchase, inventory, transfer, portion, cooking, and wastage are properly controlled, and when hotels connect responsible sourcing with efficient operations, the Food & Beverage business becomes stronger, more accountable, more profitable, and more sustainable.