Hospitality Today An Introduction

1. SQA HOT 103

2. Organizing for Success
Restaurant Controls

3. Broad Base
of Skills
• Marketing
• Quality Control
Management
• Budget & Control
• Maximize Profit

4. Prepare Serve Financial
Guidelines

5. Guest Ambience Menu

6. Finding &
holding on
Where it
comes from
What needs
they have
Guides
towards need
Formulating
menu
Advertising
& marketing
Attitude &
desire

7. Decor Lighting Furnishing Tableware
Menu
Service
Methods
Guest Servers

8. What is
restaurant is
all about
Restaurant’s
best offerings
Continuous
Change
Give guests
what they
want
Take
equipment
into account
Keep
nutrition in
mind
Use food
wisely
Provide
variety &
balance
Use standard
recipes
Take staff’s
abilities into
account
Take season
into account

9. Vary
significantly
by region
Coastal areas
prefer
seafood
Vegetarian or
Non
Vegetarian

10. Fixed
Quick Service
Fast Food
Broad Market
Simplicity
Cyclical
Change @day
Weekly/ Bi-
weekly
Meals of
the Day
Breakfast
Lunch
Dinner
Specialty
Holidays
Special
Events
Groups

11. Menu Design
Sales tool
Motivational
device
Guest Order
Order
quantity
Establish &
influence
guest
decision
Connected
with concept

12. Menu Prices
Markup
over food
Labor Cost
Appropriate
for the
Operation
Price &
Value
relationship
Competitive
Price
Profits /
ROI

13. Management
Fundamental
Responsibility
Need Basis
Standards
Goals of
Business

14. Financial Operational

15. Accounting System
Used to manage income,
expenses, & other
financial activities of
business
Allows a business to keep
track of all types of
financial transactions,
including purchases
(expenses), sales (invoices
& income), liabilities
(funding, accounts
payable), etc.
Capable of generating
comprehensive statistical
reports providing
management or interested
parties with clear set of
data to aid in decision-
making process

16. Uniform System of Accounts for Restaurants
Balance Sheet
• On one side you should list all your
assets (what you own) & on other side,
all your liabilities (what you owe)
• Giving snapshot of your net worth
(assets - liabilities = equity)
Statement of Income
• Composition of numbers that indicates
sources of revenue & expenses on to,
you guessed
• Essentially, for given time period,
income statement states profit or loss
(revenue-expenses)

17. Budgeting
• Process of creating plan to spend your money
• Creating spending plan to determine in
advance whether have enough money to do
what you need to do or would like to do
• Balancing your expenses with your income

18. Divide menu price by food cost to
determine percentage of price that comes
from food to begin determining if you have
priced meal correctly
If you sell a meal for $18 & your food costs
for that meal are $6, your food cost is 33%

19. Menu
planning
Forecasting
Purchasing
Receiving Storing
Issuing
Producing
Serving
Customer
payment
Food cost
analysis

20. Menu planning • Develop & Update
Forecasting • Period & Menu Item
Purchasing • Product & Price
Receiving • Item & Quantity
Storing
• Capacity
• Temperature Humidity
• Unauthorized Personal
• Vermin & Insects
• Receiving & Preparation
• FIFO/LIFO

21. Issuing
• Requisition & Inventory
• Direct Purchase
Producing
• Standard Recipe
• Quality & Quantity Consistency
Serving
• Friendly & Efficient
• Menu & People Knowledge
Customer payment
• Pays to Order Taker
• Pays to Cashier / Server
Food cost analysis
• Food Cost %
• Cost of Food Sold

22. The
Restaurant
Breakfast Lunch Dinner
Appetizers Entrees
Prime Rib Top Sirloin Veal
Fried
Chicken
Pasta
Salmon
Lamb Shark
Desserts Beverages Beer & Wine

23. Food Cost Cost of Food
Sold

24. Food Cost
27,000 Cost of Food Sold
100,000 Food Sales
27,000/100,000 x 100
27%

25. Cost of Food
Sold
29,000 Standard Food Costs
100,000 Food Sales
29,000/100,000 x 100
29%

26. Item A Item B
Menu Price $ 24 $ 14
Standard Food Cost % 52% 25%
Minus $ 12.48 $ 3.5
Gross Profit $ 11.52 $ 10.50

27. Labor Cost
10-15% Casual
20-30% Upscale
Markup
Receiving & Storage
Beverage Cost
30% Sales
Labor-Intensive
Quality Service

28. Any questions