The Goan: How important are internal audits in the hotelindustry today?
H A Mishra: The Food and Beverage cost in the hotel industrytoday is over 60%. In two years the rate of inflation has gone up to 20%. Fromthe time meat is purchased, stored and sold, the disposal of waste needs to beprofitable. We work to reduce F and B and operation cost by at least 35%.
TG: What decides on the credibility of a food auditingcompany? Why does a client choose FHS?
HM: As is ourpractice for 40 years, we sign a Non-Disclosure Clause with our client anddon’t disclose the identity of our clients. We don’t want people in the hotelindustry to cast aspersions on our clients. We serviced 6 outlets when westarted. Today we have 900 outlets under us and our target for the next fiveyears is 3000 outlets.
TG: When your firm is roped in, how difficult is it to bringchanges in the existing structure of the hotel?
HM: We have been roped in by startups and by thirdgeneration families who have been running hotels for four decades. We closelywork with the executive chefs, purchase team and F&B managers to study theexisting system of the hotel and rectify the same system.
TG: How important is technology for hotel audits?
HM: We have seen hotels pay large sums to software developersas license fees and never use it. Sometimes the IT department works with theF&B team to rig the software and siphon off expensive food for otherpurpose. Software needs proper monitoring to see that everything in a hotel isaccounted for.
TG: What are your thoughts on the hotel industry in Goa?
HM: Twenty years back, Goa had a few high-end starredresorts and a large influx of tourists. Today like other tourism relatedeconomies, the international tourist is a backpacker and surveys show that thetraveller is highly economical and will opt for two star hotels and spendswisely on meals. The hotel industry in Goa is very volatile.
TG: How important is human resource in the hotel industrytoday?
HM: Foreign players, who invest in the hotel industry offerhigh salary, better perks and amazing recreational benefits. This leads tostaff with good experience and expertise in the hotel industry to quit jobs. Ifa hotel or even a restaurant can’t retain staff for more than three years thanits going to face major challenges to maintain a fixed system that would yieldprofits from F&B.
