However it is important to note that the meetings for management to be done

However it is important to note that the meetings for

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However it is important to note that the meetings for management to be done twice a week, daily briefings and general staff meetings at least once a month. 18 th January Formulate stores and control procedures to ensure the profitability of the establishment. Formulate food cost report with agreed cost percentages to ensure we get proper markups on our selling prices. Formulate recipe calculation sheets to ensure we know mark ups for every food item This is very vital as proper control procedures end up in realizing sense and assist hotel in getting proper mark up. Use of requisitions, food cost, stock sheet, etc to ensure we trail food from production to sale. The aim is to achieve food cost of between 30 – 35 %. But to determine the same we must calculate recipe, consider buying prices for food item and menu pricing. This will hence give us the way forward on how to achieve the same. The main objective here is to increase sales by reducing cost. Example Sales- 2,00,000 22 nd January
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Food cost @35% = 7.000 Gross profit 1,3m With proper control of salaries and over heads we should realize some reasonable profit. With proper procedures and controls, we expect more patronage and hence we realize better sales. However marketing strategies will be key. Ensure that the purchasing department is efficient without any chances of loopholes. We need to ensure all procedures in the department are followed to the latter. Systems of purchasing receiving and proper storage. Three people to be involved while receiving food material to the store. This are store keeper, chef- to check on quality, and one more person whom the directors entrust to ensure items requested for have actually been delivered in terms of quantity. 22 nd January Advice on daily, weekly and monthly reports which must be submitted to ensure the director keeps a trail of the hotel performance. This is important as it assist the director to trail on hotel performance and hence tackle issue on daily basis. This more in stock sheet, food costs, daily sales vs. expenditure reports P&L – profit and loss accounts. The P&L to be done at the end of every month. Stock taking or inventory to be done at the end of every month to ensure the hotel does not loose items. 24 th January Develop all function menus and look at evaluate possibilities and requirements of starting an outside catering unit. As I have suggested we should look at ways of improving sales. One such is to venture in to weddings, company catering, co – operate business etc. examples Menu 1 sales 500 per person x 500 people = 250,000.
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Food cost at 35% = 70,000 Gross profit 250, 000 – 70,000= 180,000. Labour plus overhands = 50,000 so the net 180,000- 50,000 = 130,000. Summery if we try to achieve a wedding every week, on 130,000 x 4 = 520,000. That is increased revenue. We would need to target higher numbers and better pricing to give us better margins.
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