To minimise operational costs without impairing standards of operation.
Understand and implement the 12 Key Economic Levers
To enable unit to calculate its potential gross operating profit and at the same time set the management team their financial goals/targets.
Profit & Loss Accounting
To enable the unit to produce monthly financial results against budget and at the same time enable the costs to be controlled in an effective way.
Daily Analysis Sheets
This daily set of figures allows management to know on a daily accumulative basis how rooms, food, beverage and room-hire sales are doing against budget. This allows immediate action to be taken if required.
Average Room Rate
By taking the rate charged to the customer and deducting the inclusive parts of the package, i.e. breakfast, VAT and dinner if appropriate, this will enable the reception/sales team to focus on improving the net rate.
This figure denotes the number of people staying in the hotel which in turn helps the restaurant to rota more effectively as an aide to control its wage costs.
Beverage Costing Sheets
Vital information to ensure that the correct gross profit is being achieved on each section of beverage sales. Minerals/wines/spirits/beers – minerals being the most profitable.
Beverage Stock Take
External professional monthly stock takes have proved to be essential. The key benefit is to see whether item by item the margins are being achieved. Also together with listed allowances to identify where there is deficit/surplus.
Food Costings Sheets.
To be carried out by head chef on separate costing sheets for each dish to ensure the gross profit margins are being achieved and that all ingredients are included, i.e. condiments, cooking oils and bread and butter if included.
Flash Food Costs
To enable unit to know on a daily basis the accumulative month to date food cost. This enables action to be taken if required to ensure targeted food cost is achieved.
Food Stock Take
Again external stock takers are highly recommended. The results will enable management to ensure correct purchase prices are being obtained together with ensuring that the food stock levels are in line. 5 – 7 days is the economic norm.
Sales Forecast Sheets
Sales forecasting prior to the week in question will give information to the management team whether immediate sales action in-house/external needs to be taken.
Wage Forecast Sheets
Against the sales forecast this will allow the management team to ensure the wage cost percentage stays in line with the projected rates.
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