Food Beverages And Hospitality October 2018

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Statistics
While performance versus competition and
revenues and profits are major categories, knowing
the price and volume elements of related
performance indices is critical.
competitive set. So, knowing where you stand versus
your competition is key.
Performance can be seen from the point of view of
market segments of your restaurant outlets and the
catering operation. Generically, the catering is the
most profitable operation in the food and beverage
business. Results can be tracked both from a revenue
perspective as well as covers served which indicates
volume.
Revenues and Profitability
Revenues are the foundation on which any
restaurant (or for that matter any business)
operation rests. Understanding your revenue
behavior from the perspective of actuals, budgets,
last year allow you to make comparisons of business
results and indicating where you stand. Knowing
whether you are growing or not in your revenues
over time is critical to sustain the operation itself.
If revenues are the foundation of your restaurant
operation, then profitability is the very reason for
survival and earning a good return on investment for
your owners. Profitability is what sustains the
restaurant operation and injects vital cash flow to
run the business.
It is often said in the hospitality industry that if there
is no top line, there is no bottom line too. Owners are
constantly looking for sustainable profits to
continue running the restaurant operation.
In measuring profitability, knowing how your food
costs, labor costs move is critical to know. These are
the costs which actually dictate what profits you are
able to retain from the revenues you have earned.
See below Restaurant Performance Snapshot for the
elements of the performance category.
Here is where knowing how much of your restaurant
results is coming from the occupancy of the hotel
(for a restaurant operation within a hotel), how
much of your guest patronage is in-house and how
much non-resident, knowing what your overall
average check is are indicators that allow you to take
decisions in the right direction in the pursuit of
budgets and targets.
Most times, the direction in which the statistics are
headed can clearly point to what is happening to
actual revenues and profits. So, keep a sharp eye out
for indications of drop in volume or growth from
these elements.
See attached Restaurant Performance Snapshot for
the elements of the performance category.
Forecasts
While the measurement of revenues and profits
during the current month and year-to-date is
important, however, depending upon the month of
the year you are presently in,knowing the big picture
for the entire year is crucial.
For example, if you are in the month of March 2015,
knowing what happened to your performance
during March and year-to-date for three months is
important.
However, you must also know what your forecast for
the entire year is indicating. In a way, you are using
three months actuals and projecting nine months of
forecasts which completes the picture for the full
year performance.
Forecasts need to be measured, actioned upon and
monitored both for revenues and profits.
See attached Restaurant Performance Snapshot for
the elements of the performance category.
Conclusion
Your restaurant is a complex business operation.
Keeping it on a path of revenue and profit growth is
key to survival and competing in the environment
you are in.
www.kingsinfomedia.com
October - 2018
Focus Food Beverages & Hospitality
25