FOOD AND BEVERAGE CONTROL IN SELECTED 2-5 STAR HOTELS IN NAIROBI, KENYA.

Abstract

The purpose of the study was to determine the types of cost control measures operational in
2 – 5 star hotels and establish if these measures were effective in keeping the cost of sales
within acceptable limits. The study was carried in 2-5 star hotels within Nairobi province. Nine
hotels were studied.
Measures of independence including Chi-square tests were used to highlight whether
significant associations between were different variables. Analysis of variance was performed
to test if there were significant differences between the actual and standard food and beverage
cost.
The results revealed that there were significant differences between actual and standard
beverage costs amongst all the star hotel categories. There were equally significant differences
between the actual and standard/target food cost targets. The mean standard beverage costs
between the various hotel star categories were significant at 95% confidence level.
Higher star rated hotels were more likely to meet their food and beverage costs than their lower
rated counterparts because there was a significant association between the hotel star category
and the likelihood of meeting the food and beverage cost targets. Higher rated hotels did not
have a serious costs side problem and could make more profits by giving more attention to the
demand side, by encouraging more people to consume their services. Lower ranked hotels
appeared to have cost side problems. Therefore more profits can be realized by these hotels if
they institute more stringent cost control measures.