Opportunity to talk with accomplished EC. Asked him what his biggest challenge is.
“Fine turning kitchens during month. Normal day to day, no problem. But when groups added 50 more people. Or extended a half day. Or weather didn’t cooperate on busy weekend and half reservations canceled. Or bunch golfers didn’t want to play in driving rainstorm achieving revenue target is challenge.”
“Unplanned things that negatively affected revenues and increase costs drive me nuts.”
He has been using Contribution Factor on monthly basis to assure he hit revenue projections.
Revenues couple months ago, were going to fall short. He used Contribution Factor to better identify where and how to make up revenues. It is easy to identify when revenues falling short. His challenge was how to address revenues to get back on track.
I asked him for example.
Weather was miserable on heavily booked weekend. Over $150,000 in projected dinner reservations canceled Saturday night. On the 29th day of the month. No chance to recover this month. Impact on reservations cut short, spa treatments canceled, also cut into revenues. But those revenues were someone else’s problem. Or were they?
He quickly saw this was bigger problem than just kitchens. He got together with F&B Dir, Dir Catering, AGM and Front Office Director, Spa Director, DOS/M and few others. They tallied all the lost revenues. Over $600,000. Then started trading ideas on what they could do to get lost revenues back. Not the next day. But during next month.
Dir Catering thought there was small group that could be booked, if given incentive.
F&B Director suggested have some local functions 2 weekends the next month.
Spa Director suggested couples specials and introducing some new products.
DOS indicated lost cancelations would rebook, with encouragement. Then thought of 2 groups that had not booked resort for couple years. She also suggested calling competitors to see if they had any overflow business they could pass along.
EC suggested Roasted Pig Fests on Friday nights advertised to locals and resort guests. Adding couple popular specials nightly.
When whole team met two days later to assess. This team had already identified potential revenues that would offset. They came into meeting with $160,000 additional revenues, tentatively booked. Mood of meeting was quickly upbeat. Looking for more rather than being upset by what happened.
I asked him how it worked out. He indicated they did not make up the entire $600,000 but they did exceed that months revenue by little over $500,000. Resort ended up exceeding quarterly revenues, barely. But assured bonuses.
What did Chef learn? More importantly what did others learn?
By showing others how he used Contribution Factor to immediately identify overall extent of losses, not just dinner cancellations but projected “no shows” for breakfast and lunch next day. They saw Contribution Factor could be a planning tool. It was an anticipatory tool. Better to anticipate and plan than react. He took 2 Department heads through his process.
Said good reminder that what impacts one Department was impacting others.
Reminded him that other Departments often have ideas for kitchens and outlets.
DOS said good reminder to look back at groups that have not booked in while. Something that should be done monthly but sometimes gets overlooked.
Spa Director and FO Director saw better opportunities to share leads.
Bottom line
Chef became more involved in other Departments. His leadership and attitude became known. Said he was promoted to F&B Director within year.
“It’s so easy to get wrapped up in individual responsibilities. To put our heads down. When we forget to look up, we may have missed opportunities.
He summarized. “We’ve all been introduced to tools like the Contribution Factor. We need to work harder at implementing them. To easy to read and promptly forget. Unless we discipline ourselves to apply principles as well as finer details of jobs.”
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Tom Ferree is the founder of Ferree & Associates and SecureEmploy, organizations focused on helping companies find exceptional talent and helping professionals advance their careers. Since founding Ferree & Associates in 1977, Tom has worked extensively with hospitality companies, executives, and rising leaders across the industry. Through SecureEmploy, he shares practical career strategies, leadership insights, and real-world advice to help professionals grow their careers and help organizations build stronger teams.
