1.3 Hotel Food and Beverage Outlet Profit* (5%) 1. Our Business (40%)
Rationale
Food and beverage (“F&B”) is a key strategic pillar for our business as it contributes to almost half of our group’s revenue. Within the F&B department, this year’s focus is around improving our F&B outlets profitability given the large potential we see in improving and growing this business. To achieve this, every hotel will need to deliver on budget, keeping in view the guiding principles laid out below, so that we are able to improve our guest experience, competitive advantage amongst peers, and solidify our foundations for future growth.
Definitions
Scoring Mechanism
F&B OP Performance
Score
1. F&B Outlet Profit (“F&B OP”) • F&B OP is, excluding Banquet, all F&B-related revenue net of both direct expenses and indirect expenses and adjusted for bonus in local currency 2. Actual F&B Outlet Profit (“Actual F&B OP”) • December flash actual 2019 F&B OP in local currency (before bonus) submitted on TM1 on or before 5 January 2020 • For monthly tracking and reporting, actual + remaining months’ F&B OP in local currency (before bonus) submitted on TM1 on or before 5 th day of the following month 3. Budgeted F&B Outlet Profit (“Budgeted F&B OP”) • Budgeted F&B OP in local currency (before bonus) as submitted on TM1
For a hotel to score points in this metric: • Must have a positive F&B OP (i.e. not loss making) • Must attain a minimum F&B OP performance of 80% • Performance above 80% will incrementally receive additional score • Maximum score will be capped at F&B OP performance of 110%
≥ 110% 6.0 100% - 109% 5.0 – 5.9 90% - 99% 4.0 – 4.9 80% - 89% 3.0 < 80% 0
Budgeted negative F&B OP, to score points in this metric: • Must at minimum attain budget • Performance above budget will incrementally receive additional score • Rationale for a slight difference in scoring mechanism is to encourage loss making hotels to attain budget and target towards a break even situation
F&B OP Performance
Score
≥ 110% 6.0 105% - 109% 5.5 – 5.9 100% - 105% 5.0 – 5.5 < 100% 0
Measurement
• F&B OP performance = Actual F&B OP ÷ Budgeted F&B OP
• In special situations where a hotel budgeted for negative F&B OP: F&B OP performance = 2 – (Actual F&B OP ÷ Budgeted F&B OP)
*Pre-bonus
10
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