Pricing of food

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sonali

sonali (Querist)
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27 January 2009 What method should be used for fixing the price of food in a hotel ( has rooms as well as restaurants)?

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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27 January 2009 For perishable nature of goods, we generally use FIFO method. Rest depends item to item nature. Generally there can be three types of cost in case of food. Purchase of raw materials + Handling and preservation costs + processing costs. On the basis of these costs you can charge a margin based on Industry norms. It also depends on the location of the restaurent and the conditions of weather also part a major role in pricing decisions.

sonali

sonali (Querist)
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27 January 2009 Thak you Mr Maheswari.Can you recommend any book where from I can learn about the Hotel Industry norms?

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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27 January 2009 It is very nice discussion of maheswari

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CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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27 January 2009 Dear Sonali, I am not aware of any specific book on Hotel Industry, but I hope you may get the details over pricing systems for Food and Hotel industry in any good international level costing book.

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