The Food and Beverage (F&B) department plays a crucial role in the financial performance of lodging properties. The Food and Beverage—Schedule 2 provides a standardized framework for reporting revenue and expenses in this department. Properties may customize sub-accounts for more detailed financial analysis while maintaining compliance with the Uniform System of Accounts for the Lodging Industry (USALI).
1. Categories of Food and Beverage Revenue
1.1 Food Revenue
Food Revenue includes all sales of food and non-alcoholic beverages from various service points within the property. It is categorized as follows:
Venue Food Revenue
- Revenue from food sales in specific dining locations, including restaurants, lounges, bakeries, snack shops, pool areas, and fitness facilities.
- Take-out revenue associated with a service venue is recorded as part of the venue’s business activity.
In-Room Dining Food Revenue
- Revenue from food delivered to guestrooms or designated locations within the hotel.
- Group food sales handled by the Banquet/Conference/Catering department but delivered to guestrooms are recorded as Banquet/Conference/Catering Food Revenue.
Banquet/Conference/Catering Food Revenue
- Sales of food provided in banquet rooms or for group events, whether on or off the hotel premises.
- Banquet sales pertain to groups with guestroom bookings, while catering sales apply to groups without room accommodations.
Mini Bar Food Revenue
- Revenue from packaged food and non-alcoholic beverages placed in guestrooms for direct consumption.
Other Food Revenue
- Revenue from food and beverage items that do not fit into the aforementioned categories.
Total Food Revenue
Calculated by summing all food revenue categories: Venue, In-Room Dining, Banquet/Conference/Catering, Mini Bar, and Other Food Revenue.
1.2 Beverage Revenue
Beverage Revenue consists of all sales of alcoholic beverages available to guests. It is categorized as follows:
Venue Beverage Revenue
- Revenue from beverage sales in restaurants, bars, poolside areas, and lounges.
- Take-out beverage revenue follows the same categorization as venue food revenue.
In-Room Dining Beverage Revenue
- Revenue from alcoholic beverages delivered to guestrooms or within designated hotel areas.
- Group beverage sales managed by Banquet/Conference/Catering but delivered externally are recorded under Banquet/Conference/Catering Beverage Revenue.
Banquet/Conference/Catering Beverage Revenue
- Revenue from alcoholic beverage sales at banquet events or offsite catering functions.
Mini Bar Beverage Revenue
- Revenue from packaged alcoholic beverages (bottles and cans) placed in guestrooms.
Other Beverage Revenue
- Revenue from alcoholic beverages not classified under Venue, In-Room Dining, Banquet/Conference/Catering, or Mini Bar Revenue.
Total Beverage Revenue
Summation of all beverage revenue streams: Venue, In-Room Dining, Banquet/Conference/Catering, Mini Bar, and Other Beverage Revenue.
1.3 Allowances
Allowances represent revenue reductions due to service problems but exclude posting errors, which are treated as revenue adjustments. The formula for net Food and Beverage Revenue is:
Total Food and Beverage Revenue = Total Food Revenue + Total Beverage Revenue – Allowances
2. Other Revenue in Food and Beverage
Other Revenue consists of services and products that do not fall under direct food and beverage sales but contribute to the department’s financial results.
Audiovisual Revenue
- Fees from supplying audiovisual equipment and services for banquet/conference guests.
- If outsourced to a third-party contractor with direct guest billing, only the net fee or commission is reported.
Function Room Rentals and Setup Charges
- Revenue from renting function rooms for events.
- Setup fees related to room preparations for specific guest needs.
Cover Charges
- Entrance fees for events where food and beverages are sold, often including entertainment or performances.
Surcharges and Service Charges
- Mandatory or automatic charges applied to guest bills for specific services or amenities.
Miscellaneous Other Revenue
- Revenue from non-food and beverage sales, such as branded merchandise, memorabilia, or apparel.
Total Other Revenue
Calculated by summing Audiovisual, Function Room Rentals, Cover Charges, Surcharges, and Miscellaneous Other Revenue, then subtracting Allowances.
3. Calculating Total Food and Beverage Revenue
The final calculation of Total Revenue for the Food and Beverage department follows this formula:
Total Revenue = Total Food and Beverage Revenue + Total Other Revenue
Total Revenue is then reported under Operating Revenue—Food and Beverage on the Summary Operating Statement. Each category’s percentage contribution to Total Revenue is determined by dividing individual revenue line items by Total Revenue.
By maintaining structured revenue reporting through Food and Beverage—Schedule 2, hotels ensure transparency, enable effective benchmarking, and support operational efficiency in the Food and Beverage department.
