PEARL CONTINENTAL

Group Profile

Hashoo Group of Companies was established under the

leadership of Mr. Sadruddin Hashwani. In a period of some
three decades he through his single handed dedication and
commitment to the Profession has transformed this Group in
to a leading industrial group of Pakistan, well known for its
forward-looking approach, and highest standards of quality
and integrity.

Starting with Cotton Trading, Hashoo Group of Companies today boasts the only
chain of Five -Star Hotels in Pakistan namely The Pearl Continental Hotels chain and
the Karachi Marriott and the Islamabad Marriott Hotels with presence in all the
provincial capitals and the Federal Capital except one. Today, Hashoo Group of
Companies besides hotel industry encompasses oil and gas exploration, mining,
ceramics, pharmaceuticals, tourism and travel. It also has considerable investment in
real estate. Mr. Sadruddin Hashwani with his keen eye on the future is now guiding
the Group to enter the field of Information Technology (IT). Towards that end a
wholly owned subsidiary of the Group known as Net 21 (Pvt) Ltd is currently
operating as Internet Service Provider, which is planned to serve as springboard to
launch substantive IT projects.

The oil and gas exploration is being done under the Orient Petroleum Inc, which has
recently met with successful find. The Group is constantly on its forward march.
Some examples of it are: The construction of Pearl Continental Hotel Bhurban in the
picturesque Murree hills, Construction of new wing called Atrium Wing of The Pearl
Continental Hotel Lahore equipped with the most modern amenities, Continual up-
gradation and modernization of Pearl Continental Hotels and Islamabad as well as
Karachi Marriott Hotels, Acquisitions of the state-of-the-art Ceramics Factory to
design and produce crockery and a plant known as Gelcaps to manufacture halal
gelatine capsules for the pharmaceutical industry according to the most stringent
quality standards. Mr. Hashwani’s Vision knows no bounds and it will be difficult to
predict as to what will be his focus of attention tomorrow. For him time is short and
the Art is long. Therefore, his philosophy is that each moment of life should go
towards advancement of cause of humanity at large.

Mr. Hashwani runs Hashoo Foundation whose sole objective is to engage in

philanthropic projects in support of social and cultural causes and for the uplift of the
deprived. Through this Foundation he not only fulfils his corporate responsibilities but
also more importantly his unwavering commitment to promoting the good of
common man.
Pakistan Services Limited
Introduction

Pakistan Services Limited was incorporated in 1958 as a Public

Limited Company and is quoted on the Stock Exchange. It owns
and operates the Pearl Continental Hotels (formerly Inter
Continental Hotels) and is recognized as the largest and oldest
hotel company in Pakistan.

Pearl Continental Hotels is the first Pakistani chain which has achieved excellent
international standards of quality products and services. In recognition of its high
standard, the Pearl Continental Hotel, Karachi was conferred the prestigious
membership of the "Leading Hotels of the World", an exclusive global organization of
deluxe hotels established in 1928.

Pearl Continental Hotels, beside in -house reservations network, are also linked with
Utell International to have international exposure and overseas reservation network.

Investment in people and human resource development is an ongoing process in the

Hashoo Group. New management concepts and intensive training programs have
been introduced at all levels of supervisory and managerial positions through
establishment of an in-house Training School located at Pearl Continental Hotel,
Bhurban. The Training School looks forward to imparting systematic and scientific
knowledge of the operations of both tourism and hospitality business.

Pearl Continental Hotels have become synonymous with a tradition of personal

services, efficiency, convenience and guest satisfaction.

Pakistan Services limited

PC hotel Rawalpindi
PC Hotel Burbhan
PC Hotel Karachi
PC Hotel Lahore
PC Hotel Peshawar

Hashwani Hotels
Islamabad Marriot Hotel
Karachi Marriott Hotel

Others
Net21
Gel caps
Cera-e-Noor
Hashoo Foundation
Hashoo Holdings
Zaver mining Company
Zaver petroleum Corporation
Corporate Profile
Board of Directors

Mr. Sadruddin Hashwani Chairman

Mr. Murtaza Hashwani Chief Executive
Ms. Sarah Hashwani
Mr. Vazir Ali F. Mohammad
Mr. Syed Sajid Ali
Mr. Mansoor Akbar Ali
Mr. Shiraz Noordin

Human Resource and

Audit Committee
Recruitment Committee
Mr. Sadruddin Hashwani
Mr. Sadruddin Hashwani Mr. Murtaza Hashwani
Ms. Sarah Hashwani Mr. Vazir Ali F. Mohammad
Mr. Vazir Ali F. Mohammad Mr. Mansoor Akbar Ali
Mr. Shiraz Noordin

Compensation Committee
Mr. Sadruddin Hashwani
Ms. Sarah Hashwani
Mr. Vazir Ali F. Mohammad

Company Secretary Chief Financial Officer

Mr. Mansoor Akbar Ali Mr. Shiraz Noordin

Bankers Auditors
Habib Bank Limited Taseer Hadi Khalid & Company
National Bank of Pakistan Chartered Accountants
PICIC Commercial Bank Limited
Saudi Pak Commercial Bank Ltd. Legal Advisor
Union Bank Limited Liaquat Merchant & Associates

Registered Office Credit Rating Agency

A-9 Mohammad Ali Bogra Road JCR-VIS Credit Rating Company
Bath Island, Karachi, Pakistan Limited
Tel : 021-5872941-4
Tlx : 21259 HOTEL PK
Fax :021-5879872-73
http://www.pchotels.com.pk
http://www.hashoogroup.com.pk
http://www.pchotels.biz
http://www.hashoogroup.biz
Mr. Sadruddin Hashwani

Mr. Sadruddin Hashwani hails from an illustrious family of

Karachi. In 1960, he entered the business of cotton trading
and through his hard work and genius he within a decade
emerged as a prominent businessman on Pakistan’s
Industrial scene. Within a short span of 10 years, Mr.
Hashwani was at the pinnacle of cotton business and was
rightly known as the ``Cotton King” being top exporter of
cotton, besides rice and other commodities

In 1972, Mr. Hashwani diverted his attention to other

business ventures in diverse areas such as hoteliering, real
estate, trading, and property development. Again he made
history when in less than a decade, he earned the reputation of a highly successful
hotelier.

In 1978 and 1981, he consecutively built Holiday Inn Hotels first at Islamabad & then
at Karachi under the banner of Hashwani Hotels Limited. In 1992, these hotels were
totally revamped and refurbished to qualify for the well-known international 5-Star
hotel chain Marriott. The Islamabad Marriott and the Karachi Marriott to day enjoy
the same reputation as any other highest-class hotel anywhere in the world.

In 1985, he purchased the controlling shares of Pakistan

Services Limited, which owned Inter Continental Hotels in
Pakistan. These hotels were in bad shape and losing lot of
money. Mr. Hashwani changed the name of this chain of Hotels,
to “Pearl Continental Hotels.” He by dint of persistent hard work
against all odds combined with extraordinary sense of correct
direction of the future transformed the Pearl Continental Hotels
chain in to Pakistan’s largest and most elegant five-star hotel chain having presence
in Karachi, Lahore, Rawalpindi and Peshawar. He took another bold initiative when
he went ahead with the construction of a new Pearl Continental hotel at Bhurban in
the picturesque Murree Hills. The Pearl Continental Hotel, Lahore was expanded with
the addition of a new wing called Atrium Wing and refurbished with most modern
amenities. The international recognition of high standards of Pearl Continental Hotel
chain and those of the Islamabad Marriott and Karachi Marriott Hotels are
documented in various forms. As an example, the Pearl Continental, Karachi is
recognised as “One of the Leading Hotels of the World.”

Mr. Hashwani’s business acumen encouraged him to diversify into Petroleum

Industry. In 1995, he acquired controlling stocks of the US based Corporation,
Occidental of Pakistan Inc., (now known as Orient Petroleum Inc.), which is actively
engaged in the exploration and production of Oil & Gas in the country. The Orient
Petroleum has recently been rewarded with a successful find that is under evaluation
for reservoir capacity. In addition to being in hotel industry, he is also active in
trading, real estate, pharmaceuticals, ceramics, mining, and oil & gas. His industrial
conglomerate is known as Hashoo Group of Companies. Orient Petroleum Inc. is one
of the major divisions of the Hashoo Group. His latest focus is on the Information
Technology (IT) and already an Internet Service Provider company by the name of
Net 21 (Pvt) Ltd., is functioning as a subsidiary company of the Hashoo Group. Net
21 (Pvt) Ltd. is designed to serve as a platform to make further inroads into the
brand new and vital field of IT.

In recognition of his contributions to Pakistan’s business and economic progress, the

Institute of Business Administration, Karachi honoured Mr. Hashwani in 1988 with
the “Outstanding Professional Contribution Award”. For his distinguished
services to the Tourism Industry of Pakistan, he was awarded a Gold Medal at the
Tourism Convention held in 1993
ORGANIZATIONAL STRUCTURE

ORG
Pearl C

E
 VISION/MISSION:
We are committed to dynamic growth and service excellence built upon our heritage
of traditional hospitability. We strive to consistently meet and surpass guests,
employees and other stake holder’s expectations. We feel pride in making efforts to
position Pakistan in the forefront of the international arena.

Corporate culture:

 Innovation:
• Listening and two way interaction
• Participation
• Encouragement
• Motivation
• Enterprise
• Initiative

 Growth and development for all:

• Competence and contribution as the only basis for job security.
• Promotion from within
• Learning environment and opportunities
• Provision for world class education and training
• Aligning people with latest trends.

 Trust:
• Cooperation
• Support
• Teamwork
• Sense of ownership
• Empowerment
• Integrity
• Dignity
• Respect
• Candidness

 Recognition Reward:
• Achievement orientation
• Performance based evaluation
• Appreciation
• Incentives
• Setting ever-rising standards of performance.
 GOALS/ OBJECTIVES:

1. Customer service:
Pearl Continental Hotels- the largest chain of hotels in Pakistan maintains the
standards of excellence for which it’s famed worldwide. At the hotels, the art and
science of hospitality are applied in perfection to offer the most luxurious
ambience and a wealth of services to the guests who are as precious as pearls.

2. Training:
Investment in people and human resource development is an ongoing process
in the Hashoo Group. New management concepts and intensive training
programs are incorporated at all levels of supervisory and managerial positions.
Hashoo group looks forward to imparting systematic and scientific knowledge of
the operations of both tourism and hospitality business.
3. Profitability:
In order to maximize profit through sourcing new business, different
marketing arrangements are being made which include joint ventures and
exclusive marketing agreements.

4. Growth profile:
The outstanding growth can be achieved with excellent service, improvement
in décor and facilities, variety of cuisine, expansion/addition of banquet halls,
increase in airline catering business, and permission to serve food at marriage
parties.
5. Compatibility:
Pakistan Services Limited has pledged to keep pace with the change through
consistent efforts and shall continue to achieve better results through higher
sales and improved profitability. They compete with others through their high
standard services and traditional environment and chain of PC’s.
6. Traditional hospitability:
Pearl Continental Hotels is synonymous with a tradition of personal services,
efficiency, convenience and guest satisfaction. Repeat customers’ business due to
their exquisite cuisine and courteous service which give full value for money, is
one of their most valuable assets.
7. Health and safety environment:
PSL is committed to constantly strive for higher standards in health, safety
and environment to their employees, and guests. The hotel is very mindful of the
Occupational Safety and Health issues and to cement their "environment friendly
philosophy," they have undertaken a number of steps, which include periodical
meetings and safety training of associates to acclimatize the human resources
and create safety awareness amongst them.
8. Environment of professional enhancement:
At Pakistan Services Limited, management strongly believe that without the
development of top quality personnel, dynamic growth is not possible. Our core
value is "Growth and Development for All" with the elements of learning
environment and opportunities, provision of world class education and training
and aligning people with latest technological trends.
9. Enterprising:
PSL is eager to expand its activities in all major locations of the country and
abroad and to play a pivotal role in the development of tourism in Pakistan which
can only be achieved through sustained support of the government, financial
institutions, and of course our valued share holders
 GROWTH PROFILE:
Hotel industry in Pakistan has been under a lot of stress in the past few years due to
the severity drives launched by the successive government, the deteriorating law
and order situation in the country and continued duty of large number of taxes. This
industry is dependent upon the business and tourist activity in the country. In
Pakistan, repeated efforts with the government to come to the rescue of the hotel
industry have so far been all in vein. The business activity in Pakistan has overall
remained sluggish. Tourism, also, has never been properly emphasized, including
development of tourist spots and support infrastructure, despite the exquisite scenic
beauty of the landscape of Pakistan and its rich cultural heritage. The fall in foreign
nationals traffic to Pakistan in the upshot of September 11 incident and frequent acts
of terrorism have continued to adversely affect the hotel industry.
In the above circumstances, the management of Pakistan Services Limited proved its
managerial skills and overcame to a large extent the negative impact of sluggish
business on the performance of the Company by successfully achieving sales and
services for the year, as targeting. However, change in sales mix gave rise to
increase in cost of sales and the administrative cost. As a result, the profit after tax
declined. Due to the prevalent conditions in Pakistan and worldwide, the rooms sales
did not maintain the desired growth momentum. Pursuant to the policy of PSL to
enhance the image of the "Pearl" chain, they plan to expand their properties and
continue to follow a program of rehabilitation and refurbishment in all the five
properties.

PROFITABILITY:
Pearl continental hotel, is the most preferred hotel chain to visit by its
customer, but due to economic upheaval in the country and effect of international
environment on tourism and hotel industry, PC could not retain its growth
momentum as required. Though the Company was able to achieve sales and services
of Rs.1.932 billion for the current year, which was almost equal to what they had
achieved during the last year; change in sales mix gave rise to increase in cost of
sales and the administrative cost as compared to last year. As a result, the profit
after tax declined to Rs.32.889 million for the year as compared to Rs.84.891 million
last years. The rooms sales during the year, did not maintain the desired growth
momentum. Pearl Continental Hotels of Lahore, Rawalpindi and Peshawar have won
an exclusive contract for the lodging of cabin and cockpit crew of the national carrier,
Pakistan International Airlines (PIA). This success contributed towards increase in
overall room occupancy to 58% as compared to 54% during the corresponding
period last year. However, due to decline in average room rate, the room revenue
stood at Rs. 831 million as against Rs.890 million in the corresponding period last
year, which is a decrease of Rs. 59 million. In order to get more business and
maximize profit, Pearl Continental executed a Marketing & Reservation Agreement
with M.H.R. Collection Limited (Medotels, Hotels and Resorts). As per agreement,
MHR Collection will provide the services through their network for promoting PC
hotels in Pakistan and for making room reservations, which will positively improve
room revenue in the years to come. This revenue generating business comprised
approximately 51% of the total sales revenue of the hotel as compared to 44% last
year.
The gross room revenue for PC during the years is shown in the diagram from the
year 1997 to 2003.This graph shows overall decrease in gross room revenue for the
Chain of PC’s in recent year. The total revenue has also decreased for previous
years.

Business overview
Pearl Tours & Travels (Private) Limited registered a decline in both Sales and
Operating Profit by Rs.5.8 million (10%) and Rs.6.6 (85.68%) respectively as
compared to last year. However, due to increase in other income and favorable tax
decision at appeal levels, Company made after tax profit of Rs. 1.2 million as
compared to last year’s after tax loss of Rs. 3.8 million. During the year2003, old
vehicles were disposed of and new additions to its fleet were made in order to
provide better service to the customers. In order to improve the liquidity of the
holding company to meet other hotels projects, the directors have proposed to
dispose off this company.
Trans Air Travels (Private) Limited, despite recording a modest decrease in revenue
by Rs. 0.433 million as compared to last year, succeeded in reducing its after tax
loss to Rs. 3.366 million as compared to after tax loss of Rs. 4.917 million of last
year. This Company is under consideration of disposal due to continuous
accumulation of losses during the last several years.
During the year, food and beverage revenue increased to Rs. 988 million from Rs.
851 million, marking an improvement of 16%. The diagram on next page shows the
trend analysis for the sales of food and beverage from year 1998 to 2003.
 Management structure at Pearl Continental

There are seven major functional departments in Pearl Continental Hotel Rawalpindi.
These are
1. Finance Department
2. Sales & Marketing Department
3. Engineering Department
4. House Keeping Department
5. Human Resource Department
6. Food And Beverage Department (Front Office & Restaurants)
7. Cost & Control Department

A brief introduction of these departments is as follows.

Sales department:
The basic sales are concerned with reservation of rooms. The sales department
works under this consideration.

Marketing department:
The marketing department is concerned with promotional activities, which includes
 Above the line marketing
 Below the lone marketing
Above the line marketing includes promotional campaigns in print and electronic
media.
Below the line marketing includes local campaigns including banners, bill-boards and
handouts.

Finance department:
It is concerned with the financial recording, provision and payments. It consists of a
finance control controller, who is the supervisor of the department. There is also a
credit section for employees and customers.

Engineering department:
It is concerned with the maintenance of the rooms, offices, floors and lobby area. It
ensures full time provision and maintenance of water, power and light in all places.
 House keeping:
It is concerned with general cleanliness and hosting services to the guests. It has a
supply section which ensured provision of accessories and valuables. Corporate level
purchases are made from Karachi section, while local level purchases include daily
items.

Human resource department:

This department is concerned with recruitment, promotion, training of Workers in the
organization. There are 500 plus workers in the Hotel for which the department have
to keep a union of worker which works for social security of the employees. It has
three sections, which includes personnel department, human resource management
department and human resource development department.

Food and beverage department:

It is the main department in the hotel, which includes

 Restaurants:
A sumptuous food is served at four outlets.
TAIPAN:
Exclusively Chinese, it serves the best Cuisine in Town, and opens both for Lunch
and Dinner. In Taipan Restaurant, people can have buffet lunch from 12:00 PM
onwards where the finest Chinese buffet is served. In the evening timings are from
7:30 PM to 11:00 PM.
MARCOPOLO:
It serves Pakistani and Continental Buffet Cuisine, and is open for Breakfast, Lunch,
and Dinner. Breakfast starts in Marcopolo in the early hours of the morning serving
lavish buffet breakfast. Lunch timing in Marcopolo start from 12:00 PM to 3:00 PM.
BUKHARA:
Opens to the lilting sounds of the local Ghazal Singer, and is most famous for its
mouth watering Pakistani cuisine, including live Bar–B–Que. It opens at 7:30 PM
serving Bar-B-Que. Buffet layout starts from Chicken Tikka, Seekh Kebab to endless
number of Bar-B-Que delicacies.
FRONT PAGE:
The Front Page Cafe is royally famous for its very affordable and varied spread of
“Hi-Tea” delicacies in the evening and it open round the clock for light snacks and
refreshments.
Immense Services and Facilities

Rooms

200 well appointed rooms include Presidential, Deluxe and junior Suite. Modern day
facilities include direct dial local, National and International Dialing, Cable TV,
Heating and Air-conditioning. Electronic Safe with a self-setting code, and Computer
controlled electronic door locks are also installed for your security. The attached bath
boasts of a spacious tub, shower and continuous Hot and cold running water. Do not
fret if you have forgotten your
essentials, we take care of your basic
toiletteries.

Stepping on to the elevator and going

into your room, you find a spacious bed
awaits you together with a cosy seating
arrangement on one side of the room.

Not to mention the various options that

are at your disposal to keep you
entertained and comfortable while in the
room. We provide you with the option of
keeping you musically entertained 24
hours of the day by giving you access to the music channel. Our 34 TV Channels
keep you updated on current news to the latest movies and programs.

Other important room accessories include the electronic safe. To cater to your off
time eating urges we provide you with a beverage room minibar within the confines
of your room.

Luxury does not end here. Walk into the

bathroom and you will find it fit for a
King/Queen. A full range of bathroom
accessories are available for your
personal use. You also have the added
facility of taking your calls in the
bathroom as each bathroom is fitted
with a telephone unit.

Our services do not end here, Pearl-

Continental Hotel, Rawalpindi provides
you with the facility of choosing from a
range of deluxe rooms, executive suites
with its separate lounges and facilities unmatched by any other hotel in Pakistan
 Sumptuous foods served at our four outlets make it a memorable culinary
experience.

TAIPAN: Exclusively Chinese, it

serves the best Cuisine in Town, and
opens both for Lunch and Dinner. Seat
yourself in our cosy Taipan Restaurant
where you can have buffet lunch from
12:00 PM onwards where the finest
Chinese buffet is served. In the
evening enjoy the cuisine of your
choice from 7:30 PM to 11:00 PM.

MARCOPOLO: Serves Pakistani and

Continental Buffet Cuisine, and is open
for Breakfast, Lunch, and Dinner. Breakfast starts in Marcopolo in the early hours of
the morning serving lavish buffet breakfast along with Ala Carte service. Lunch
timing in Marcopolo start from 12:00 PM to 3:00 PM. Whether you are a busy
executive pressed for time or whether you want to enjoy your meal, Marcopolo is an
ideal Restaurant to do so.

BUKHARA: Opens to the lilting sounds

of the local Ghazal Singer, and is most
famous for its mouth watering
Pakistani cuisine, including live Bar–B–
Que. It opens at 7:30 PM serving you
Bar-B-Que. Buffet layout starts from
Chicken Tikka, Seekh Kebab to endless
number of Bar-B-Que delicacies.

FRONT PAGE: The Front Page Cafe is

royally famous for its very affordable
and varied spread of “Hi-Tea”
delicacies in the evening, and it open
round the clock for light snacks and refreshments.
The guests have access to all kinds of services and facilities so as to make their stay,
not only comfortable, but also a
memorable one.

Besides these the following services and

facilities are available to our guests:

Room Service:

Server you in the warmth and comfort of

your own room, and offer a varied menu
depending on the time of the day.

Banquet Facilities:

Tastefully refurbished, our Conference and Banquet facilities can cater from small
meetings, to Royal banquets of 650 to 1500 people, in our Halls and the vast Eastern
and Western lush green gardens.

Conference Facilities:

The new Conference facilities have state of the art Audio visual aids, and are
complemented by available ISDN lines.

The Business Centre

The Business Centre will assist you with

all your correspondence, tele-faxing and
other executive needs. The rooms are
ably supported by a state of the art
Business center for the modern day
businessman, and can cater to all your
electronic needs.

Features a Grand Ballroom measuring

155 ft. by 70 ft. and can accommodate
up to 1000 guests. An attached pre-
function hallway measures 117 ft. by 15
ft. The Banquet can also be divided into three portions for smaller groups.

The newly added Kohsar halls are available for smaller meeting requirements. They
cover a total area of 39 * 65 sq ft.
Health & Creation Facility

The aesthetically built Health club includes Tennis, a temperature controlled

swimming pool, treadmills and steppers for aerobics, multi machines for weight
training, Sauna, Steam, Jacuzzi, and a soothing massage. A snooker / pool table and
Table tennis are also available.

Today the Health conscious people look

towards PCHR. Our newly added Health
Club offers you light music in the back
ground and modern workout machines.
Like motorized Jogger, Double Burner,
Easy Glider, Massage Static Cycling.

Our Health Club Memberships are

economical our monthly membership is
Rs. 3920.00, 3 Monthly Rs. 7177.00, 6
Monthly 10830.00, and Yearly 16960.00
(inclusive all taxes).

Now you can swim at our modern

Swimming Pool at any time of the year
as the Swimming Pool has a controlled
heating system. So dip into our
swimming pool whenever you feel like.
We offer you an opportunity to play
billiard near the pool or suntan yourself.

Clay courts are also available where you

can play tennis by day or by night.

The Privilege Club [See Exhibit 3 for details]

The world of Pearl-Continental Hotels welcome you to the Privilege Club. Your
membership to the Privilege Club entitles you to a host of exclusive privileges. When
visiting the Pearl Continental Hotel restaurants in Karachi, Lahore, Peshawar,
Rawalpindi, and Bhurban. Renowned for unparalleled quality of cuisine attentive
service and authentic design surroundings, your dining experience in any one of the
restaurants when using your Privilege Club Card is guaranteed to be unique and
memorable. Furthermore, you will be afforded a variety of other benefits when using
selected hotel services. We look forward to extending our hospitality to you soon.
Other Facilities:

Laundry/DryCleaning:

The best service in town offers same day delivery

Barber Shop / Beauty Salon:

Trained personnel take care of your tresses, and trim and shape them to make you
look good.

Pearl Tours:

A sister concern, offers chauffer driven Cars, Busses, and Mini vans. Open round the
clock.

Trans Air:

Another sister concern, takes care of all your travel needs,

Florist:

From floral settings to bouquet’s available in the lobby all day.

Shopping:

From every day utilities, to Carpets, and Antiques, our shopping area provides all.

Bakers Boutique:

Exquisite Cake, Bakes, and Patisseries available for individual and party
consumption.

Banking:
Habib Bank Ltd. Operates within the premises, and can take care of all your banking
needs.

Credit Cards:

All major Credit cards are accepted round the clock.

 Operations Management

Food and Beverage

Right Price
Right Time
Right Quality
Right Quantity

Hierarchy
Director
F & B Manager (Vacant)
Assistant Manager
Banquette Sale Manager Banquette Manager
Assistant manager Assistant manager
Executive
Coordinator
F & B Secretary

Divisions
1) Banquettes
a. Exhibitions
b. Weddings
c. Cafeteria
d. Meetings
e. Funfairs
f. Conferences
2) Restaurants
a. Taipan
b. Bukhara
c. Marcopolo
3) Room Service
4) Bakers Boutique
5) Permit Room
6) Catering
7) Kitchen
8) Stewarding
9) Airline Catering (Aero Asia, Shaheen)

Documents
1) Function Sheet
a. Banquettes
 b. Kitchen
c. Stewarding
d. House Keeping(Clothes, Flowers, Laundry)
e. Accounts
f. Credit(Bill to company)
g. Rooms(
2) Reservation Slip
a. Date
b. Time
c. Availability
d. Menus and Rates
e. Arrangements
f. Guarantee no. 03days
g. Full payments

A. Staff (Internal scheduling, staff posting)

B. Engineering (Audio, visuals)
Cost Control

Introduction

The following material has been prepared and adopted to standardize the methods,
systems at report presentation of Food and Beverage Cost Control in the IHC Hotels. At
the present time we have many variations of cost controlling in our hotels, resulting in
various degrees of effectiveness. Undoubtedly methods used by individual hotels, even
though different, are effective, because there are several correct ways of accomplishing
functions in accounting. There fore, to make the statement that there is one system that is
better than all others its functions, for even the so called “experts” differ their opinions of
methods. There are several important reasons for all hotels to adopt a standard practice of
cost controlling.

Firstly, one system in use by number of hotels will continually be upgraded with
improvements in techniques as all personnel will be making these suggestions or
recommendations they have to the same system. As these suggestions are received and
adopted they will be distributed for the benefits of all IHC Hotels. Secondly, the reports
to be submitted to local management and the New York Office will be more easily
interpreted if they are uniform, and should result in timely and effective corrective action
as required.

Thirdly, the case of training or transferring Food and Beverage Cost Control personnel
from one hotel to another will be facilitated with resulting savings in time and expense.

We believe this manual can be of real value in solving difficult problems of controlling
the largest cost items in everyday operations. However, it should not be assumed that the
installation of food and beverage cost control system spells and end to the food and
beverage cost problem. Nothing could be further from the fact. The system is designed to
find trouble. Once it is found, management action is required to correct it.

PURPOSE OF FOOD AND BEVERAGE CONTROL

The purpose of Food and Beverage Control is to assist Management in obtaining the
greatest possible gross profit on Food and Beverage Sales, consistent with the policy of
Management as to quality, size of portion and selling price. The importance of this
function is best brought into focus when it is realized that the food and beverage sales is
in the IHC Hotels make up more than fifty percent of all revenues. To attain this
objective it is necessary to criminate over preparation and other wasteful practices that
can only be controlled by advance planning. Simply stated it is:

1. What to buy.
2. How much to buy.
3. How much to prepare.

Cutting quality and portion sizes or raising selling prices is not the answer a better profit.
The solution to high food cost problems is to be found in taking decisive steps before the
actual damage is done. No one can cure faulty purchasing, pilferage, excessive spoilage
or over preparation merely by being indignant after has happened