Day 1

Block One

• Introduction and Purpose
• Objectives - to implement the ‘12 Economic Levers' and achieve profit potential
• Business economic norms
• To identify the company's organisational chart
• Job clarification/key overall management responsibilities

Block Two

• Identify the profit margins for rooms, food, beverage
• How to framework a 12 month budget
• How to construct and understand the profit & loss

Block Three

• Calculation of the sales budget*
  • Rooms: Average room rate/number of rooms sold/sleeper ratio
  • Food: Spend per cover for all food outlets
  • Beverage: Revenues calculated by the business flow process
  • Room hire (No VAT)
  • Misc: Identifying other revenue not included in above

Day 2

Block One

• Principles of food cost control
• Food cost calculations
• Month end stock take food analysis
• Explanation and introduction of daily flash food cost control backdated to 1st of month
• Menu course cost guidelines

Block Two

• Calculation of the budget cost sectors
  • Food cost
  • Beverage cost
  • Commission cost
  • Wage cost : Rooms (20 -25%) Food (35%) Beverage (16%) Management/Admin (5%)
  • Indirect costs/overheads
• Complete draft budget by end of day to GoP level

Day 3

Block One

• Approve budget
• Investigate wage cost control on low revenue months
  • Multi skilling
  • Unpaid holiday
  • Holidays when replacements are not needed
  • 4/3 day weeks (all staff or none)
  • Redundancy
  • Seasonal contracts
  • £5 on call programme

Block Two

• Principles of beverage cost control
  • Beverage categories cost norms : Spirits, Wines, Champagnes, Minerals, Beers
  • Beverage costings
  • Month end stock take analysis
  • Explanation and introduction of flash beverage cost backdated to 1st of month
  • Explanation of beverage potentials

Block Three

• Introduction of daily analysis
  • Figures to be actual to budget
  • Calculation of actual food and wine departmental spend per head
  • Inclusion of daily flash food cost
• How to increase sales when behind budget on 20th of month
  • Explain up selling
  • Low cost and high food cost promotions
  • Pre-meal kitchen/food service meeting strategy
  • Short term rooms promotion

Day 4

Block One

• Principles of weekly/monthly sales forecasting
  • Explain mid week forecasting reasons
  • Actual/forecast revenues
  • Pre-visit average room rates and average food spend calculations
  • Departmental daily revenue totals
• Principles of weekly/monthly wage forecastin
  • Explain gross wage calculation
  • Holiday forecasts to be included in calculation
  • Actual roster to be worked out and costed daily
  • Explain how daily wages can fluctuate but weekly wages have to stay within norms
• Actual sales/wage forecast for following week must be carried out before moving onto next section

Block Two

• To analyse month to date figures actual to budget
• Analysis flash food cost/average spend per head food & wine sales
• Action plan to be made out where necessary

Objective setting

• Differences between a wish and an objective
• Component parts of an objective
• Monitoring the objective
• Each team member to set a minimum of 4 objectives for their department, one each in:-
  • In house sales
  • Direct costs/food costs/beverage costs
  • Standards
  • Personnel
  • Indirect costs - misc room/food/beverage

Block Three

• To understand action to do lists
  • An action plan per each objective
  • Presentation update at each management monthly meeting
  • Dates and personal performance clearly defined

Find out more

• Economic Programme
• Sales and Marketing
• Management Development
• Training Infrastructure