About This Chapter
Financial Management in Hospitality - Chapter Summary
This collection of lessons examines the ways that restaurants and hotels manage their financial matters. Inside the chapter, you'll learn and review topics such as operating expenses, financial statements and sales reports. You can also take a look at a restaurant's investment structure and learn how to calculate a variety of restaurant costs. Finally, examine strategies that hotels use to manage revenue.
These lesson highlight essential financial management concepts through definitions and memorable examples. You can check your understanding of each topic by taking the included lesson quizzes, and our instructors are happy to answer any questions you may have. The chapter can be completed at your own pace and you can use virtually any Internet-connected device to study.
How It Helps
Current and aspiring hospitality managers can find these lessons useful and convenient. If you plan on transitioning into the hospitality industry, these lessons can help you establish a fundamental understanding of the financial management of restaurants. Equipping yourself with this knowledge may help you gain a competitive advantage and establish competency on job interviews. These lessons can also help you supplement your managerial skills and better understand the financial workings of restaurants and hotels.
By the end of this chapter, you'll be able to:
- Identify types of restaurant operating expenses
- Analyze restaurant income and financial statements
- Understand template for restaurant budget and financial statements
- Outline the investment structure of a restaurant
- Calculate the cost of goods sold (COGS), food cost percentage and the food cost for a recipe
- Compare COGS to the expense
- Assess revenue management strategies for hotels
- Examine the daily sales reports for restaurants
1. Restaurant Operating Expenses: Types & Examples
Ever thought of running a restaurant? Before you jump in, you may want to review this lesson on restaurant operating expenses. From food to table linens, this lesson introduces you to many of the expenses you'll encounter.
2. Restaurant Income Statement: Example & Template
When you own a restaurant, one of the things you need to do is to keep track of income and expenses so that you know if you are making a profit. In this lesson, learn how you can do this with the help of the income statement.
3. Restaurant Budget Template
In this lesson, you will learn how to set up a budget for starting and running a restaurant. We will cover topics from start up costs and food costs to licensing fees and employee costs.
4. Cost of Goods Sold (COGS): Calculation & Example
After reading this lesson, you'll be able to calculate the cost of goods sold for any business. You'll learn the formula to use as well as how this number benefits you tax-wise.
5. Cost of Goods Sold (COGS) vs. Expense
Read this lesson to learn why the cost of goods sold and expenses are listed on separate lines on financial business documents. You'll also learn that there is a tax advantage to doing things this way.
6. Food Cost Percentage: Definition & Calculation
For a restaurant owner, food cost percentage represents one of the fastest ways to make sure an establishment is pricing its goods properly, as well as making enough money with respect to one of its biggest expenses.
7. How to Calculate Food Cost for a Recipe
After this lesson, you'll know how to calculate the cost of a dish at a restaurant, taking into account the cost of ingredients, overhead, cooking time and other factors, so you will know how much you should charge your customers for it.
8. Restaurant Daily Sales Report Template
Read this lesson to learn how restaurants keep a record of their daily sales so they know how much money they are making each day and whether the restaurant is growing or not.
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