Operational calculations

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Understanding financial data provides historical insight in turn possible strategies to correct or enhance future business results. http://bit.ly/W7FWb9

Understanding financial data provides historical insight in turn possible strategies to correct or enhance future business results. http://bit.ly/W7FWb9

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  • 1. Operational CalculationsFood Beverage Manager
  • 2. OPERATIONAL CALCULATIONS Annual food revenue  Food revenue = Spend per head x No. of covers x No. of days x no. of weeks Annual beverage  Beverage revenue = spend per head x No. covers x No. of days x No. of weeks Average number of staff  The average number of covers (B) divided by one member of staff required for number of covers for example 40 customers 10 customers per member of staff, 40/10 = 4 C A Bird - F&B Manager Tel: 0203 011 5863 Web: http://bit.ly/VW9X07 Page 2
  • 3. LABOUR COSTS Labour costs pay day = No. of staff x Working hours x Rae of pay per hour Labour costs per year = Total labour costs per day x No. of days No. of weeks Labour costs in relation to total annual revenue Labour cost percentage = Labour costs x 100 / Revenue C A Bird - F&B Manager Tel: 0203 011 5863 Web: http://bit.ly/VW9X07 Page 3
  • 4. GROSS PROFITSales revenue- cost of sales x 100 / sales A measure of operational efficiency (not profitability).  Shows the gross profit, i.e. the sales less costs of materials (food or beverage) as percentage of sales.  Conversely, can be used to indicate the percentage of materials costs.  Can be used over time for budgeting and comparison purposes and for comparison with industry norms. C A Bird - F&B Manager Tel: 0203 011 5863 Web: http://bit.ly/VW9X07 Page 4
  • 5. NET PROFIT %Net profit % = sales revenue – total costs x 100/ sales Measures the average amount spent per bill transaction.  Usually calculated for specific service period in order to compare spending power of customers and average customers group size over time.  Useful when interpreting & comparing sales figures. C A Bird - F&B Manager Tel: 0203 011 5863 Web: http://bit.ly/VW9X07 Page 5
  • 6. SPEND PER HEADSpend per head = Sales / No. of customers Measures the average amount sent per person served.  Usually calculated for a specific service period in order to compare spending power of individual customers.  Can be broken down further to indicate spend on food and beverages.  Useful when interpreting and comparing sales figures overtime. C A Bird - F&B Manager Tel: 0203 011 5863 Web: http://bit.ly/VW9X07 Page 6
  • 7. MATERIAL COSTS %Material costs % = Sales x 100 / Cost ofmaterials. Identifies the cost of materials (either food or beverages) as a percentage of the sales revenue.  Usually calculated separately for food & beverages & also then down to individual or groups of menu or beverage items.  Useful for comparison over different service periods & for comparison against industry norms. C A Bird - F&B Manager Tel: 0203 011 5863 Web: http://bit.ly/VW9X07 Page 7
  • 8. LABOUR COSTSLabour costs % = Sales x 100 / Cost of labour Identifies the cost of labour as a percentage of the sales revenue.  Useful for comparison over different periods & for comparison against industry norms. C A Bird - F&B Manager Tel: 0203 011 5863 Web: http://bit.ly/VW9X07 Page 8
  • 9. PRODUCTIVITY INDEXProductivity index = Sales / Cost of labour Alternative method for showing labour costs in relation to sales.  Low index would be where there is a high labour cost in relation to sales  Can be used as budget measures and also for comparison with industry norms. C A Bird - F&B Manager Tel: 0203 011 5863 Web: http://bit.ly/VW9X07 Page 9
  • 10. REVENUE PER EMPLOYEERevenue per employee = Total sales / NO. ofstaff employed Gives sales revenue per member of staff.Can also be calculated for full-time equivalent.  Used as a measure of efficiency.  Usually calculated for specific service periods & comparison made overtime. C A Bird - F&B Manager Tel: 0203 011 5863 Web: http://bit.ly/VW9X07 Page 10
  • 11. SALES PER SEAT AVAILABLESales per seat available = Sales / No. of seatsavailable Indicates the amount of sales that are generated per seat available  Usually calculated for given service periods & compared over time.  Can also be calculated on the sales per seat used.  Comparison between these two figures can indicate efficiency of operation. C A Bird - F&B Manager Tel: 0203 011 5863 Web: http://bit.ly/VW9X07 Page 11
  • 12. SEAT TURNOVERSeat turnover = NO. seats used / No. of seatsavailable Indicate the occupancy efficiency of the seating in a food service area.  Usually calculated for specific service periods & compared over time. C A Bird - F&B Manager Tel: 0203 011 5863 Web: http://bit.ly/VW9X07 Page 12
  • 13. SALES PER SQUARE METRESales per meter = Sales / Total area of operationin square metres Can also be calculated per square foot.  Commonly also used in retail operations.  Can be useful in bar areas or for takeaway operations where earnings per seat cannot be calculated. C A Bird - F&B Manager Tel: 0203 011 5863 Web: http://bit.ly/VW9X07 Page 13