Chapter11New

Chapter11New - Restaurant Operations HM 557 CHAPTERELEVEN:BUDGETING ANDCONTROLLINGCOSTS Back of-the House Operations Front of the House Operations

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Restaurant Operations HM 557
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CHAPTER ELEVEN: BUDGETING  AND CONTROLLING COSTS Back- of-the- House Operations Front- of- the- House Operations Controlling Food, Beverage, and Labor Costs Guest Check Control
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Back of the House Operations “Heart” of the operation Purchasing, receiving, storage, issuing, food prep, dishwashing, sanitation, accounting, budgeting and control. Chef setting the menu either daily or permanent
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Front of the House All areas with which guests come in contact: Lobby Corridors Elevators Guest Rooms Restaurants Bars Meeting Rooms Restrooms
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Front of the House Operations: Hosts, Bartenders, Servers, Bussers Opening/ Closing Manager Curbside Appeal refers to the first impression of the restaurant
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Back of the House Operations The area of the restaurant that the guest does not usually see The Kitchen The Dishwashing Area Storage Receiving Area
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Back of the House Technology Inventory Payroll Food and beverage Costing Menu Software Managers Station
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PURPOSE OF BUDGETING • To “do the numbers” and more accurately  forecast if the restaurant will be viable
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FORECASTING SALES   Sales volume has two components: The average guest check Guest counts
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BUDGETING COSTS Costs may be budgeted according to two  main categories: FIXED: unaffected by change in sales  volume. VARIABLE: change proportionately  according to sales
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CONTROLLABLE EXPENSES Term used to describe the various  expenses that can be changed in the short  term: e.g. . variable expenses; payroll;  operating expenses; marketing; heat;  light; repairs and maintenance
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This note was uploaded on 10/08/2011 for the course HTM 557 taught by Professor Staff during the Spring '11 term at S.F. State.

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Chapter11New - Restaurant Operations HM 557 CHAPTERELEVEN:BUDGETING ANDCONTROLLINGCOSTS Back of-the House Operations Front of the House Operations

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