hospitalitynU

budgetary control process Principles of Budgeting Targets must be realistic. Conduct a detailed analysis of past trends and their influence on future expectations Make a provision for inflation Allow for projected growth Agree timing of Budget Decide who is involved in preparing the budget Budget control Budget is the monitory expression of business plans and financial policies to be pursued in the emerging future period of time. The term budget is associated with the estimated figures regarding sales, production, cost, profit, etc for future and it requires planning, co-ordination, control, etc. Preparing a budget may not be'very difficult but to prepare a budget which is very close to the actual figures is very important and requires a qualified, experienced staff. Though there may be a separate department consisting of experts for preparing the budgets but they require the help and co-ordination of various other officials and data to prepare budgets. Bud...

Profit volume relationship One cannot assume, however, that “good” cost-to-sales relationships automatically result in profit for a restaurant or that higher or lower cost percentages are necessarily desirable for a given restaurant. Indeed, it is possible that a higher food cost percent— obtainable by lowering menu prices or by increasing food costs, thus giving each customer more for his or her money—may result in sufficient additional customers to increase profitability in spite of the higher food cost percent. It is also possible that lower cost percentages (achieved by raising menu prices or lowering costs) may result in fewer customers and lower profits. Another possibility is that lower menu prices will lessen profit because there is an insufficient increase in the number of customers to offset the higher cost percentage. Nevertheless, it is obvious that the ratio of total costs—food, plus beverage, plus labor, plus all other costs—to total sales cannot exceed 100 percent ...

The Objectives of Beverage Sales Control 1. Optimizing the number of sales 2. Maximizing profit 3. Controlling revenue these objectives may appear to be identical to those of food sales control, there are special considerations in bar operation— some legal, some ethical and moral—that lead to significant differences. For example, in food sales control, one of the means of maximizing profit is to increase sales to individual customers, to use any of several possible approaches to induce the average customer to purchase greater numbers of products. Obviously, this is an approach that no reasonable beverage manager would ever attempt. At the same time, bar operators who attempt to optimize the number of sales in this way will find their efforts restricted by various local, state, and federal laws and regulations affecting such considerations as customer age, hours of operation, and, perhaps most important, society’s growing concern about those who drive while under the influence ...

RECEIVING Establishing Standards The primary goal of receiving control is to ensure that deliveries received conform exactly to orders placed. In practice, this means that beverage deliveries must be compared with beverage orders in regard to quantity, quality, and price. The standards established for receiving are quite simple. 1. The quantity of an item delivered must equal the quantity ordered. Verifying this normally requires examining bottles, to be sure they have been filled and sealed, and then simply counting bottles or cases. It can also involve weighing kegs of beer to confirm the standard of fill or examining containers to confirm that those received conform to the order. 2. The quality of an item delivered must the same as the quality ordered. For all spirits, wines, and beers, one would check to be certain that the brand delivered was the same as the brand ordered. For wines, verification may also require checking vintages or the bottling dates of wines that are be...