Which metric indicates cost control in a beverage program?

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Multiple Choice

Which metric indicates cost control in a beverage program?

Explanation:
Cost control in a beverage program is best tracked by beverage cost. This metric shows how much of beverage revenue is consumed by the cost of the drinks, typically expressed as a percentage (cost of beverages sold divided by beverage sales). It directly reflects pour control, waste reduction, and theft prevention, as well as the effectiveness of purchasing and pricing in keeping costs in line with sales. When beverage cost stays within target, profitability on drinks improves. Inventory accuracy helps flag stock discrepancies but doesn’t by itself measure cost control; table turnover relates to service speed and guest flow, not drink cost, and employee turnover affects labor costs rather than the direct cost efficiency of beverages.

Cost control in a beverage program is best tracked by beverage cost. This metric shows how much of beverage revenue is consumed by the cost of the drinks, typically expressed as a percentage (cost of beverages sold divided by beverage sales). It directly reflects pour control, waste reduction, and theft prevention, as well as the effectiveness of purchasing and pricing in keeping costs in line with sales. When beverage cost stays within target, profitability on drinks improves. Inventory accuracy helps flag stock discrepancies but doesn’t by itself measure cost control; table turnover relates to service speed and guest flow, not drink cost, and employee turnover affects labor costs rather than the direct cost efficiency of beverages.

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