keKapaciteti

Kapacitet u hotelijerstvu predstavlja sposobnost proizvodnje odreenog

obujma prometa, odnosno pruanja odreenog obujma usluga. Budui da
hotelijerstvo podrazumijeva obavljanje djelatnosti angairanjem odgovarajuih
sredstava (zgrade, oprema ), a da su proizvodni procesi i obiljeja ponude pri
pruanju usluga smjetaja te prehrane i pia razliiti, razlikujemo:
smjetajni kapacitet i
konzumni kapacitet
Stupanj iskoritenosti kapaciteta je pokazatelj hotelskog poslovanja, a
predstavlja omjer stvarnog i mogueg koritenja. Izraava se u postotku od
raspoloivog kapaciteta, a esto i brojem dana potpune zauzetosti. Iskoritenost
kapaciteta u pravilu se izraunava za konkretnu poslovnu godinu (365 dana ako se
radi o cjelogodinjem poslovanju ili stvarni broj dana kroz koje je hotel otvoren
ako
se radi o sezonskom poslovanju). Kako bi se mogle pratiti sezonske oscilacije u
iskoritenosti kapaciteta, ovaj se poslovni pokazatelj osim na godinjoj razini
izraunava i na razini pojedinog mjeseca.
U hotelijerstvu se upotrebljavaju dva naina izraunavanja stupnja
iskoritenosti kapaciteta ovisno o tome prati li se prodaja kapaciteta kroz broj
iznajmljenih soba ili kroz broj ostvarenih noenja:
stupanj iskoritenosti kapaciteta mjeren brojem soba (%)=
broj iznajmljenih soba 100
___________________________
broj raspoloivih soba
dani pune zauzetosti=
% iskoritenja broj dana poslovanja
______________________________
100

Stupanj iskoritenosti kapaciteta hotelskog odjeljenja hrane i pia moe se

izraunati kao postotak broja posluenih gostiju izraunat na temelju broja
sjedeih
mjesta. Broj gostiju koji je mogue posluiti utvruje se tako da se broj sjedeih
mjesta pomnoi koeficijentom broja gostiju koji mogu biti poslueni po jednom
sjedeem mjestu tijekom radnog vremena ili za pojedini obrok. Ovisno o
primijenjenom nainu posluivanja i kvaliteti usluge prethodni koeficijent u
pravilu u
normalnim uvjetima poslovanja iznosi izmeu 2 - 4.
Pokazatelj iskoritenosti kapaciteta osobito je vaan za hotela za odmor,
odnosno za hotele locirane u naim primorskim sreditima. Zbog izrazitog
sezonskog
karaktera poslovanja takvi su hoteli u nepovoljnom poloaju jer su sredstva
uloena u
njihove kapacitete obino vrlo visoka, a iskoritenost je nedovoljna i iznosi svega
dvije treine prosjene iskoritenosti naih konkurenata (40% u odnosu na 60%).
S obzirom na razinu iskoritenosti, razlikujemo sljedee vrste kapaciteta:
1) maksimalni kapacitet - je maksimalno mogui kapacitet ili sto postotna
iskoritenost
2) realni ili radni - je ona razina iskoritenosti kapaciteta koja se ostvaruje u
normalnim uvjetima poslovanja, pri emu su uraunati vremenski gubici do kojih
dolazi pri smjenama gostiju, odnosno smanjena razina uporabe kapaciteta u izvan
sezonskom razdoblju ili pak, uraunavajui vremenske gubitke do kojih dolazi
zbog odravanja hotela, godinjeg ienja i slino
3) optimalni kapacitet - je razina iskoritenosti kapaciteta koja osigurava
maksimalnu razliku izmeu prihoda i rashoda poslovanja, odnosno maksimalni
profit uz normalno optereenje. To je razina kapaciteta pri kojoj se postiu najnii
trokovi po jedinici usluge. Kod hotela kapacitet nije optimalno iskoriten ako
ostvaruje 100 postotnu zauzetost, jer takva zauzetost uvjetuje poveano
optereenje svih hotelskih resursa, ve se o optimalnoj iskoritenosti govori ako je
hotel zauzet na godinjoj razini izmeu 80 - 90%.
IMOVINA, KAPITAL I OBVEZE
Da bi ispunio svrhu zbog koje je osnovan, hotel, mora raspolagati ljudima koji
u odreenoj organizaciji obavljaju dodijeljene im poslove. Isto tako, hotel mora
raspolagati i odreenom imovinom, koju ljudi koriste u procesima pripreme i
pruanja

razliitih hotelskih usluga. Ljudski imbenik, koji se u ekonomici oznaava

pojmom
ljudski kapital obuhvaa znanja, sposobnosti i talentiranosti svakog pojedinog
zaposlenika. Imovina koja se pri tom koristi oznaava se pojmom fiziki kapital.
Fiziki kapital, odnosno imovina hotela, vrijednosti su kojima hotel raspolae
da bi ostvario planirani poslovni pothvat i tako ostvario odreenu korist.
Vrijednost i
struktura imovine ovise o veliini hotela, organizacijskoj strukturi, dostignutom
stupnju tehnolokog razvitka i ostalim imbenicima.
Imovina hotela moe imati fiziki oblik, kao to su hotelske zgrade ili oprema.
Dio imovine je i gotovina kojom raspolae hotel kako bi financirao svoje poslovne
aktivnosti. Imovina moe imati i nefiziki pojavni oblik na osnovu kojega hotel
ostvaruje potraivanje ili neki drugi oblik prava.
Imovina se u raunovodstvu prikazuje odreenim novanim vrijednostima, a
sve prema iznosu gotovine koja je ranije bila uloena u pribavljanje iste. Imovina
se
vrednuje prema trinoj cijeni u trenutku pribavljanja (jer hotel ne bi pristao platiti
Turistiko ugostiteljstvo IV.god. - KiT 39
vie). Imovina se - u bilanci stanja, prikazuje na jednoj strani (lijevoj) i oznaava
se
pojmom aktiva, dok se na drugoj strani (desnoj) prikazuju obveze i kapital za
pribavljenu imovinu i oznaavaju se pojmom pasiva. Imovina se prikazuje po istoj
vrijednosti kao i vrijednost dugova koji rezultiraju pribavljanjem imovine, te se
utvruje matematika jednakost izmeu aktive i pasive, odnosno tzv. bilanna
jednakost. Aktiva daje podatke o nainima koritenja imovine, a pasiva o izvorima
imovine.
Pod kapitalom mislimo na dio neijeg bogatstva koji se upotrebljava u
poslovnom pothvatu radi stjecanja materijalnih korist, obino u obliku gotovine. U
ekonomici se pod kapitalom misli na fiziku imovinu u bilo kojem pojavnom
obliku,
dok se u svakodnevnom govoru izraz kapital upotrebljava za koliinu novca koja
je
rezultat prethodne tednje.
Osnovne karakteristike kapitala su:
1) da je formiran s namjerom da bude utroen
2) da povea produktivnost ostalih imbenika proizvodnje (zemlje i rada)
Investiranje kapitala u hotelske proizvodne procese oituje se kroz ulaganje u

ljude i imovinu, pri emu postoji vrlo velika razlika u mjerljivosti efikasnosti
meu
njima. Efikasnost ulaganja u imovinu moe se precizno izmjeriti povratom
uloenih
novanih sredstava, za razliku od efikasnosti ulaganja u ljude to nije mogue
izmjeriti. Hotelsko poslovanje je nemogue bez ljudskog imbenika, a ulaganje u
kvalitetno osoblje osigurava dugoronu perspektivu poslovanja svakog hotela.

Imovina
Neovisno o pojavnom obliku, imovina se u hotelu koristi na razliite naine, to
jest obavlja razliite funkcije. Imovina u tom smislu poprima razliite
funkcionalne
oblike.
Karakteristike imovine koja se koristi u odreenom hotelu ovise o vrsti hotela,
asortimanu ponude i kapacitetima, organizacijskoj strukturi, hotelskoj poslovnoj
politici i drugim imbenicima. Prema pojavnom obliku imovina se moe
razvrstati u
sljedee osnovne skupine:21
1) gotovina
2) materijalne stvari
3) potraivanja i ostala prava
4) aktivna vremenska razgranienja (unaprijed plaeni trokovi)
S aspekta funkcioniranja imovine u poslovnom procesu imovinu razvrstavamo
na:
1) stalnu imovinu
2) tekuu imovinu
Hotelijerstvo karakterizira dominantan udio stalne imovine, koja ini od 80 - 90%
od ukupne vrijednosti hotelske imovine.22Unutar stalne imovine najznaajniji dio
pripada materijalnoj imovini - oko 90%. To je posljedica visoke vrijednosti
hotelskih
zgrada, koje predstavljaju osnovni dio imovine svakog hotela.
Poetni oblik svake vrste imovine je gotovina, tj. novac, koji predstavlja
svojevrsnu energiju jer omoguava pokretanje tijeka procesa proizvodnje i
njegovo
normalno odvijanje. Novac je neophodan za stavljanje u funkciju stalne imovine i

angaman zaposlenika, a nedostatak novca za posljedicu moe imati potekoe ili

pak
zaustavljanje cjelokupnog proizvodnog procesa.
Da bi proces proizvodnje bio kontinuiran, cirkulacija tekue imovine mora biti
stalna - im iz poetne faze (gotovina) ue u drugu (zalihe potrebnog materijala),
ve
u prvu fazu treba ui nova koliina imovine, tako da se tekua imovina javlja
stalno u
svim fazama i pojavnim oblicima u obujmu i strukturi koje definira specifinost
poslovnog zadatka odreenog hotela.

Obveze
Kao i svaka tvrtka tako i svaki hotel ima dugove. Bez obzira da li se radi o
najveim i najuspjenijim hotelima i neovisno o imovini kojom raspolau,
kupnjom
razliitih materijala, opreme, gradnjom dodatnih kapaciteta ili primanjem usluga i
mnogim drugim poslovnim aktivnostima stvaraju se dugovi, odnosno obveze
prema
dobavljaima. Obveze po osnovi tih dugova hoteli imaju do njihova podmirenja. U
konanici, hoteli i sve druge tvrtke ne samo da ne izbjegavaju dugove, ve se
nastoje
koristiti kupovinom razliitih proizvoda putem kredita jer je ovakva kupnja
uglavnom
povoljnija od kupnje za gotovinu.23
Da bi osigurali kontinuitet i unaprijedili poslovanje, hoteli vrlo esto povrh
imovine koju su vlasnici uloili u isti, posuuju gotovinu od banaka ili drugih
financijskih institucija koje se bave posuivanjem novca. Posuivanjem novca
putem
zajma za bilo koju namjenu, hotel stvara dugove koji se nazivaju kreditne obveze,
a
posuiva gotovine postaje kreditor. Za razliku od kreditnih obveza, dugovi
nastali
kupnjom na primjer namirnica i pia za potrebe tekueg odvijanja poslovanja, koje
e
hotel platiti u roku uobiajenom za takva plaanja, ne ugovaraju se formalnim
ugovorima.24

Obveze hotela korespodentni su s imovinom hotela pa se mogu klasificirati

jednako kao i imovina, odnosno kao:
1) dugorone obveze
2) tekue obveze

Likvidnost i solventnost
Likvidnost je sposobnost tvrtke da u roku podmiri sve svoje tekue
obveze, a solventnost predstavlja sposobnost tvrtke da u roku udovolji svojim
dugoronim obvezama.25
Pojam likvidna sredstva koristi se za opisivanje gotovine i imovine koja je
odmah zamjenjiva za gotovinu. Za razliite pojavne oblike imovine moe se rei
da
pokazuju razliite stupnjeve likvidnosti. Gotovina, sukladno definiciji, sama po
sebi
23 Koritenje

kredita smatra se financijskom polugom. Vie o ovome pogledaj u: James C. Van

Horne,
Financijsko upravljanje i politika (Financijski management), deveto izdanje (Zagreb: MATE,
1993.).
24 Prilagoeno prema: grupa autora, Raunovodstvo I, (Zagreb: SRIF RH, 1992.), str. 67.
25 Pojam likvidnost dolazi od latinske rijei - liquidus, koja znai tekui, koji tee, a pojam
solventnost
takoer od latinske rijei - solvere, koja znai rasistiti, platiti, namiriti.

Turistiko ugostiteljstvo IV.god. - KiT 41

najlikvidnija je imovina, dok njeni drugi pojavni oblici imaju razliite stupnjeve
likvidnosti ovisno o lakoi s kojom se mogu zamijeniti za gotovinu. Likvidnost
imovine ima dvije dimenzije - vrijeme potrebno za njeno konvertiranje u gotovinu
i
stupanj izvjesnosti iste konverzije (u svezi s cijenom koja se moe postii za
konkretni pojavni oblik imovine).
to je potrebno vrijeme za cirkulaciju imovine krae, to za isti poslovni
rezultat (profit) treba angairati manje gotovine. Dakle, bra cirkulacija imovine
rezultira veom likvidnosti hotela.
Hotel se moe nai u odreenim tipinim likvidnosnim situacijama:
likvidnost
prekomjerna - za posljedicu ima nepotrebne gubitke, umanjuje ekonominost i
profitabilnost poslovanja, te je zbog tetnosti treba izbjegavati;

 optimalna - optimalna brzina i obujam cirkulacije imovine;

nezadovoljavajua - sporija ili pak cirkulacija imovine u uem obujmu od
potrebnog za nesmetano funkcioniranje hotela;
nelikvidnost
privremena - zastoj u cirkulaciji imovine za odreeno, krae razdoblje, ali koja
se
ponovo uspostavlja;
trajna - nastaje kada hotel trajno ne moe uspostaviti ponovnu cirkulaciju
imovine.
Solventnost je poslovna kategorija koja je u svezi s tijekovima gotovine. Odliv
gotovine iz hotela ne moe biti vei od ukupne raspoloive koliine gotovinskih
sredstava. Meutim, moe biti manji od dospjelih obveza plaanja, ime nastaje
stanje
insolventnosti.
Solventnost je uvjetovana odnosom raspoloive gotovine i obveza plaanja.
Pokazatelji solventnosti mjere iznos do kojega se hotel financira preko
zaduivanja.
Mjeri se na jedan od sljedea dva naina:
1) poetno stanje gotovine hotela + prilivi gotovine - dospjele obveze > ili = 0
2) poetno stanje gotovine hotela + prilivi gotovine / dospjele obveze > ili = 1
Insolventnost se moe javiti kao privremeni zastoj u plaanjima dospjelih
obveza hotela to je mogue otkloniti primjenom odreenih mjera u financijskom
poslovanju ili pak kao obustava plaanja. U sluaju obustave plaanja za hotel se u
skladu sa zakonom primjenjuju mjere sanacije, steaja ili likvidacije.

Kapital
Kapital hotela pripada njegovim vlasnicima. Neovisno o obliku vlasnitva,
kapital je matematiki jednak ukupnoj vrijednosti imovine umanjenoj za sve
dugove
hotela
Ukupna vrijednost imovine hotela poveava se sa svakom kupnjom imovine
do trenutka podmirenja duga za kupljeno ili sa svakim posuivanjem novca od
banke.
Kako se istodobno s tom kupnjom ili posuivanjem novca poveavaju i dugovi
hotela,

to kapital vlasnika ostaje nepromjenjen.

Vlasniki kapital se moe poveati na dva naina:
1) dodatnim ulaganjem vlasnika i
2) dobitkom ostvarenim poslovanjem
PRIHODI, UINCI I PRIMICI
Pod prihodima se podrazumijeva priljev gotovine, potraivanja ili drugih
naknada koji proizlazi iz tijeka redovitih poslovnih aktivnosti hotela. Prihodi
se
mjere potraivanjima od gostiju za pruene im usluge, a iz prihoda se iskljuuju
sve
naplaene svote gotovine na ime treih osoba - na primjer naplaeni PDV ne
predstavlja prihod odreenog hotela, ve je to prihod prorauna Republike
Hrvatske.
Prihodi podrazumijevaju ulazak novih vrijednosti u hotelski poslovni sustav.
Ovisno o karakteru prihoda i njihovu pojavnom obliku razlikujemo:
1) prihode poslovanja - oni su u normalnim uvjetima poslovanja najzastupljeniji
prihodi hotela
2) prihodi financiranja - nastaju plasiranjem vlastitog kapitala na trite (npr.
prihodi
po osnovi kamata to ih ostvarujemo od odobrenog kratkoronog zajma nekoj
tvrtki iz okruenja)
3) izvanredni prihodi - javljaju se neplanski, a rezultiraju poveanjem imovine ili
smanjenjem obveza
Uinci predstavljaju sve na odgovarajui nain procijenjene rezultate
poslovnih aktivnosti koji imaju karakter hotelske usluge.
Uinak je pojam koji se prije svega vezuje uz interni obraun rezultata
poslovanja. Management odreenog hotela ne interesiraju podaci o prihodima u
onoj
mjeri u kojoj ga interesiraju podaci o uincima, jer se uinci smatraju aktivnou u
svrhu ostvarenja hotelskih ciljeva, koji rezultiraju prodajom odreenih usluga
potroaima
Primici predstavljaju ulaske gotovine u hotel, a prema karakteru naplate
javljaju se kao primici u gotovini i obraunski primici.

RASHODI, TROKOVI, IZDACI I UTROCI

Rashodi predstavljaju rtvovane resurse u stvaranju hotelskih prihoda

kojim pripadaju. Rashodi osim ulaganja u svrhu stvaranja uinaka mogu nastati i
kao neutralna potronja povezana s nastankom izdataka. Dakle, rashodi mogu, ali i
ne
moraju nastati u skladu sa svrhom i ciljem poslovanja, s obzirom na to da se u
rashode
ukljuuju i razliiti neposlovni utroci i gubici. Rashodi predstavljaju negativnu
komponentu poslovnog rezultata hotela jer rezultiraju poveanjem obveza ili
smanjenjem imovine i kapitala.
Turistiko ugostiteljstvo IV.god. - KiT 43
Nastajanje rashoda uvijek je povezano s realnim utrokom naturalnih
vrijednosti ekonomskih dobara. Najvei dio rashoda nastaje u osnovnom
poslovnom
procesu prilikom stvaranja uinaka - taj dio rashoda nazivamo trokovima.
Ovisno o njihovom karakteru i pojavnom obliku razlikujemo sljedee vrste
rashoda:
1) rashode poslovanja - najzatupljeniji su u normalnim uvjetima poslovanja;
2) rashodi financiranja - nastaju u uvjetima nedostataka vlastitog kapitala ili
visoke
inflacije (npr. kamate na zajam)
3) izvanredni rashodi - ne mogu se predvidjeti
Trokovi predstavljaju rtvovane resurse radi postizanja cilja. Oni su
najznaajniji dio hotelskih rashoda, a nastaju u skladu sa svrhom i ciljem
poslovanja.
Trokovi su ustvari vrijednosno izraeni utroci rada, stalne i tekue imovine te
tuih
usluga uloenih u hotelske procese pripreme i pruanja razliitih usluga.
Pod izdacima mislimo na izdavanje, odnosno smanjenje gotovine hotela.
Izdaci, analogno kao primici mogu biti gotovinski ili obraunski. Nastaju prilikom
stvaranja uinaka, ali mogu nastati i neovisno o tome, tako da mogu i ne moraju
imati
karakter troka.
Utroci predstavljaju fiziko ulaganje materijalnih vrijednosti u svezi
stvaranja uinaka. Oni se najee izraavaju u fizikim jedinicama mjere dakle, u
gramima, litrama, komadima itd.

Da bi se uope mogao pokrenuti bilo koji proces proizvodnje potrebno je u

njega ulagati odreene koliine resursa. Pod ulaganjem mislimo na troenje jer se
resursi rtvuju kako bi se postigli definirani ciljevi poslovanja, a to je u
hotelijerstvu
ostvarivanje zadovoljavajue razine dobiti kroz zadovoljavanje zahtjeva, elja i
potreba potroaa. Cilj troenja u hotelijerstvu je dobivanje novih usluga, pri emu
trebamo nastojati da one budu jo vrednije i jo korisnije od resursa utroenih za
njihovu proizvodnju.
Trokovi su pretpostavka poslovanja i ne smijemo ih promatrati u negativnom
kontekstu. Naime, svaki se troak isplati ako za rezultat ima vee dugorone
koristi od vrijednosti utroenih resursa. Meutim, mogunost troenja resursa
nije
neograniena, ve je potrebno da se njihova ulaganja u proizvodne procese kreu u
ogranienim okvirima. Ogranienje potronje u svrhu proizvodnje odreenih
hotelskih usluga je u cijeni koja se na tritu za iste moe postii. S obzirom da su
prodajne cijene hotelskih usluga trine kategorije koje se formiraju u uvjetima
konkurencije veliina hotelske dobiti je u izravnoj ovisnosti o veliini trokova
angairanih za proizvodnju odreenih usluga. Poveanje prodajne cijene trite
moe
vrlo loe primiti, stoga se svaki hotelski management treba orijentirati na kontrolu
trokova, jer u uvjetima snane konkurencije jedino utede na trokovima
poveavaju dobit.
Za svaki je hotel u dugoronom smislu bitno biti jeftiniji od konkurencije za
istu razinu kvalitete ponude ili nuditi vie za istu cijenu. To znai da za konkretni
hotel ako eli ostati konkurentan, trokove poslovanja u relativnom iznosu stalno
treba smanjivati. Poveanje obujma proizvodnje podrazumijeva i poveanje
ukupnih
trokova. Meutim, ako se u relativnom iznosu smanje trokovi poslovanja to e
znaiti da se po jedinici uinka (pruena usluga) angaira manja koliina i
vrijednost
resursa nego u prethodnom razdoblju. Cilj svakog hotela, stoga, treba biti
kontinuirano smanjivati trokove po jedinici uinka. Bilo koji hotel moe raunati
na
dugoroan uspjeh ako nije skuplji ili ako je jeftiniji od ostalih, to jest
konkurentskih hotela. Nuditi jeftinije usluge nuno ne treba znaiti imati najnie
trokove, jer se
odreeni hotel moe opredijeliti za takvu politiku trinog nastupa po kojoj e

poslovati s viim trokovima i usluge nuditi po viim cijenama, ali uz veu

kvalitetu.
Trokovima se moe pristupati s razliitih aspekata te ih je mogue i razvrstati
prema razliitim kriterijima.
prema pojavnom obliku razlikujemo sljedee prirodne vrste trokova:
trokovi materijala
trokovi usluga
trokovi osoblja
amortizacija
nematerijalni trokovi
trokovi financiranja
prema mjestima nastanka (koja mogu biti glavna i pomona, a radi se o
organizacijskim jedinicama u kojima nastaju trokovi - kao na primjer kuhinja,
aperitiv-bar i sl.) razlikujemo:
proizvodne trokovi
neproizvodne trokovi
prema nositeljima, odnosno s aspekta uraunavanja trokova u cijenu hotelskih
usluga razlikujemo:
izravne (direktne ili neposredne) trokove
neizravne (indirektne ili neposredne) trokove
s obzirom na reagiranje na promjene u stupnju zaposlenosti kapaciteta
razlikujemo:
fiksne (stalne) trokove
varijabilne (promjenjive) trokove
za potrebe usporedbe i predvianja trokova razlikujemo:
stvarne trokove - koje dalje dijelimo na povijesne i tekue
planske trokove
standardne trokove
marginalne (granine) trokove
ukupne trokove - (ine ih zbroj trokova koji su nastali u odreenom razdoblju,
pa tako moemo govoriti o ukupnim trokovima odreenog mjeseca, kvartala,
godine, sezone i sl.)
prosjene trokove (trokovi po jedinici uinka, a dobijemo ih kada ukupne
podijelimo s brojem uinaka)
PRIRODNE VRSTE TROKOVA I NJIHOVO OBUHVAANJE PREMA
MJESTIMA I NOSITELJIMA

Osnovna podjela trokova je ona koja se temelji na porijeklu njihova nastanka.

To je podjela trokova na prirodne vrste, odnosno prema pojavnim oblicima, koja
omoguuje utvrivanje svrhe zbog koje su odreeni trokovi nastali. Ova se
podjela u
formaliziranom obliku koristi u financijskom raunovodstvu za evidentiranje i
praenje trokova. Razlikujemo est skupina prirodnih vrsta trokova.
U hotelijerstvu u prvu skupinu - trokove materijala - svrstavamo trokove
materijala izrade (namirnice i pia), trokove energije, trokove rezervnih dijelova
(npr. za hotelski vozni park) i trokove sitnog inventara. U drugu skupinu trokove
usluga - svrstavamo trokove hotelske promidbe, trokove prijevoznih usluga,
trokove sajmova, trokove najamnina, trokove komunalnih usluga, trokove
vanjskih usluga reprezentacije (znai, izvan hotela), trokove intelektualnih i
osobnih
usluga (npr. za izradu investicijske elaboracije), trokove usluga odravanja (npr.
bojanja hotelske zgrade) i slino. U treu skupinu - trokove osoblja - svrstavamo
trokove plaa zaposlenicima te poreze i doprinose koji se isplauju na plae i iz
plaa
zaposlenika. U etvrtu skupinu - amortizaciju - svrstavamo amortizaciju
nematerijalne imovine i amortizaciju (deprecijaciju) materijalne imovine. U petu
skupinu - nematerijalne trokove - svrstavamo dnevnice za slubena putovanja,
trokove nadoknada managementu (tzv. fee), trokove osiguranja (premije
osiguranja), trokove platnog prometa, razliite pristojbe, lanarine i sline. U
estu
skupinu - trokove financiranja - svrstavamo trokove kamata na zajmove,
teajne
razlike i sline.
Nakon to su trokovi obuhvaeni prema prirodnim vrstama pristupa se
obraunu trokova prema mjestima njihova nastanka i nositeljima ili uincima u
svrhu
kojih su nastali.
Obraun trokova poinje na pomonim mjestima troka (npr. raunovodstvo,
odjel nabave, kotlovnica i sl.) koji se prevaljuju na glavna mjesta troka (restoran,
aperitiv-bar i sl.) kojima se zaraunavaju kao sekundarni trokovi. Dakle, ukupne
trokove pojedinog mjesta troka ine primarni (izvorni trokovi glavnog mjesta) i
sekundarni trokovi. Ukupni trokovi glavnih mjesta tada se prenose na nositelje.

S aspekta podjele trokova prema mjestima njihova nastanka uobiajena je

podjela trokova na proizvodne i neproizvodne trokove, pri emu vrijedi
sljedee:
proizvodni trokovi + neproizvodni trokovi = ukupni trokovi
Ukupni trokovi predstavljaju zbroj svih trokova nastalih u odreenom
razdoblju.
Ukupne trokove obino svrstavamo u tri osnovne skupine:
1) trokovi materijala izrade
2) trokovi plaa izrade
3) trokovi reije (proizvodne i ope reije)
Proizvodne trokove ine trokovi materijala i plaa izrade i trokovi
proizvodne reije. Trokovi materijala i plaa izrade su primarni trokovi
odreenog
mjesta troka, dok se trokovi proizvodne reije ne mogu povezati s odreenom
hotelskom uslugom, ve nastaju kao posljedica prateih aktivnosti vezanih za
procese pripreme i pruanja hotelskih usluga. Trokovi ope reije ili neproizvodni
trokovi su
u stvari trokovi ostalih poslovnih funkcija hotela. U hotelijerstvu ih obino
svrstavamo u trokove administracije (uprave) i trokove prodaje (marketinga).
Da bi trokove obuhvatili prema nositeljima nuno je da ih rasporedimo na:
1) izravne (direktne ili neposredne) - one koje je mogue izravno povezati s
odreenom hotelskom uslugom (npr. trokovi namirnica i pia)
2) neizravne (indirektne ili posredne) - one koje nije mogue prenijeti na
odreenu
hotelsku uslugu, ve ih se po posebnom kljuu rasporeuje na nositelje trokova
(npr. amortizacija, premije osiguranja, administrativni trokovi i sl.)
Kao nositelj troka u hotelijerstvu moe biti:
pojedina usluga - na primjer usluge smjetaja, usluge pia;
grupa usluga - na primjer pansionske usluge, izvan pansionske usluge;
segment djelatnosti - na primjer odjeljenje smjetaja, odjeljenje hrane i pia; i
slino.

TROKOVI S OBZIROM NA REAGIRANJE NA PROMJENE U

STUPNJU ZAPOSLENOSTI
S obzirom na reagiranje na promjene u stupnju zaposlenosti trokove dijelimo na:
1) fiksne (stalne) trokove
2) varijabilne (promjenjive) trokove
Za ralanjivanje trokova na fiksne i varijabilne koristimo sljedee metode:
logike metoda - temelje se na ekonomskoj logici zakonitosti ponaanja pojedinih
vrsta trokova s obzirom na promjene u stupnju zaposlenosti;
iskustvena metoda - temelji se na podacima o trokovima iz prethodnih razdoblja
poslovanja hotela (tj. na analizi raunovodstvene evidencije trokova);
matematike metode - temelje se na pretpostavci da se razlika u ukupnim
trokovima
za dva razliita stupnja zaposlenosti odnosi na varijabilne trokove, jer se fiksni ne
mijenjaju.

Fiksni trokovi
Fiksni trokovi su oni trokovi koji u svom ukupnom iznosu ostaju
nepromijenjeni bez obzira na to da li se mijenja stupanj zaposlenosti na koji
se
oni odnose. Ovi su trokovi preteno rezultat postojanja stalne imovine, znai
ovise o
veliini smjetajnih kapaciteta i o pripremljenosti hotela za njegovo iskoritenje.
U hotelijerstvu u fiksne trokove ubrajamo plae stalnih zaposlenika,
amortizaciju, trokove najamnine, premije osiguranja, kamate na zajmove itd. Oni
uobiajeno ine oko 60 - 70% strukture ukupnih trokova hotela.
Hotel u cijelosti mora obuhvatiti te trokove neovisno o stupnju zaposlenosti.
Na primjer ako amortizacija na godinjoj razini za hotel koji posluje sezonski
iznosi
Turistiko ugostiteljstvo IV.god. - KiT 47
100.000 kuna mjeseno, ona se nee promijeniti niti u sezoni kada hotel posluje,
niti
izvan sezone kada je hotel zatvoren.
Dakle, fiksni trokovi se u ukupnom iznosu ne mijenjaju s promjenama u
stupnju zaposlenosti kapaciteta, dok s druge strane, rasporeeni po jedinici uinka
porastom proizvodnje opadaju.
U hotelijerstvu fiksni trokovi ine oko 70% ukupnih trokova poslovanja. S
obzirom da su ovi trokovi dominantni i da se poveanjem proizvodnje po jedinici

uinka smanjuju, zadovoljavajui se poslovni rezultat treba pokuati postii

poveanjem prometa, a ne dizanjem cijena, kao to se to esto ini.
Fiksni trokovi se mogu podijeliti na:
1) apsolutno fiksne - koji se ne mijenjaju s poveanjem ili smanjenjem u stupnju
zaposlenosti kapaciteta. U hotelijerstvu apsolutno fiksni trokovi su amortizacija
(obraunata po vremenskoj metodi), trokovi odravanja, plae (stalnih)
zaposlenika, premije osiguranja, najamnine, vei dio administrativnih i trokova
prodaje;
2) relativno fiksne - koji su nepromjenjivi jedino u okviru pojedinih zona
zaposlenosti, to jest iskoritenosti kapaciteta. Prelaskom iz zone nie iskoritenosti
u zonu vie iskoritenosti kapaciteta skokovito rastu. To znai da se razlikuju
visine fiksnih trokova pri iskoritenosti kapaciteta od 40%, od onih pri stupnju
iskoritenosti od 80%. U hotelijerstvu relativno fiksni trokovi su plae sezonskih
zaposlenika, dio trokova grijanja i osvjetljenja, dio administrativnih i trokova
prodaje i drugi.

Varijabilni trokovi
Varijabilni trokovi su oni trokovi koji se mijenjaju ovisno o
promjenama u stupnju zaposlenosti kapaciteta. U hotelijerstvu je jedan od
glavnih
Turistiko ugostiteljstvo IV.god. - KiT 49
predstavnika varijabilnih trokova troak materijala - namirnica i pia. Na primjer,
hotelski restoran treba imati normative o utroku namirnica i pia za svaku
pojedinu
uslugu hrane i pia. Ako elimo pripremiti obroke za 10 gostiju tada normative
jednostavno pomnoimo s 10 i dobijemo potrebne koliine materijala izrade.
Dakle, s
poveanjem stupnja zaposlenosti hotelskog restorana rastu i trokovi materijala.
U hotelijerstvu u varijabilne trokove moemo uvrstiti trokove materijala
izrade (namirnica i pia), trokove potronog materijala (npr. za ienje, razliiti
dodaci jelima i sl.), amortizacija obraunata po funkcionalnoj metodi, trokovi
energenata - elektrine energije, plina, goriva, loiva ulja i sl.) i druge. Oni
uobiajeno
ine oko 30-40% strukture ukupnih trokova hotela.
Varijabilni trokovi rastu poveanjem u stupnju zaposlenosti kapaciteta. S
obzirom na brzinu njihova porasta u odnosu na poveanje u stupnju zaposlenosti,

razlikujemo:
1) proporcionalno varijabilne trokove - koji se poveavaju ili smanjuju
sukladno
poveanju ili smanjenju stupnja zaposlenosti kapaciteta;
2) progresivno varijabilne trokove - koji se poveavaju bre nego se poveava
stupanj zaposlenosti (esto poveanje zaposlenosti kapaciteta rezultira i veim
kartom ili gubicima u proizvodnji);
3) degresivno varijabilne trokove - koji se poveavaju sporije nego to se
poveava
stupanj zaposlenosti kapaciteta (trokovi potronog materijala u hotelskoj kuhinji
rastu sporije nego to raste koliina pripremljenih obroka, ime se ostvaruju
odreene utede).
ANALIZA TOKE POKRIA
Pomou ove analize utvruje se odnos izmeu trokova, stupnja zaposlenosti i
dobiti pri razliitim razinama aktivnosti. Osobito se upotrebljava za potrebe
kratkoronog planiranja. Analiza toke pokria uzima u obzir razliita ponaanja
trokova u odnosu na prihode. Naime, neki se trokovi u odnosu na prihode
ponaaju
neutralno, dok su neki proporcionalni ili neproporcionalni. Promjene u strukturi
prihoda uvjetuju razliite udjele pojedinih vrsta trokova u prihodima.
Za svaku hotelsku uslugu vrijede drukiji odnosi izmeu trokova i cijena.
Temeljna pretpostavka ove metode je da ako su prodajne cijene vee od
varijabilnih trokova, poveanje stupnja zaposlenosti - pruenih hotelskih
usluga
omoguuje poveanje u pokriu fiksnih trokova i eventualno ostvarivanje
dobiti. To znai da je i za ona razdoblja kada nema znaajnog intenziteta potranje
za
hotelskim uslugama isplativo poslovati, jer svaka prodana usluga za rezultat ima
smanjivanje gubitaka, to jest poveanje dobiti.
Toka u kojoj se izjednaavaju ukupni trokovi s prihodima naziva se tokom
pokria (break even point). U ovoj toki hotel ostvarenim prihodima pokriva
trokove poslovanja, dok je dobit jednaka nuli. Dosizanje toke pokria s obzirom
na
porast stupnja zaposlenosti kapaciteta ovisi o razlici izmeu prodajne cijene
hotelskih

usluga i ukupnih trokova (fiksni trokovi + varijabilni trokovi).

Poveanje cijena hotelskih usluga ima najsnaniji utjecaj na poveanje razine
dobiti. Meutim, potranja za hotelskim uslugama je izrazito elastina. Stoga,
slijedi
da takva poslovna politika moe biti vrlo opasna po dugorone ciljeve hotela, jer u
pravilu izaziva pad prodaje, ali i reakcije konkurenata Sniavanje trokova i
poveanje stupnja zaposlenosti (ustvari - prodaje hotelskih usluga), u tom smislu,
smatraju se ispravnim poslovnim potezima.
MARGINALNI (granini) TROKOVI
Marginalni ili granini trokovi jesu trokovi posljednjeg stupnja
zaposlenosti. Nastaju kao rezultat porasta proizvodnje za jo jedan - posljednji
uinak, kada se stupanj iskoritenosti kapaciteta povea za jednu jedinicu (uslugu)
to za posljedicu ima porast ukupnih trokova za odreeni iznos. Taj iznos
predstavlja
vrijednost marginalnih trokova.
Vrijednosti marginalnih trokova dobije se omjerom porasta ukupnih trokova
u odnosu na porast stupnja iskoritenosti kapaciteta.

Formula za izraunavanje marginalnih trokova:

porast ukupnih trokova
_____________________
porast stupnja iskoritenosti kapaciteta
Kao priblina vrijednost marginalnih trokova, u praksi se obino uzimaju
varijabilni trokovi. Naime, svaka dodatna hotelska usluga izaziva dodatne
trokove i
rezultira dodatnim prihodima. Dodatni trokovi po jedinici uinka mogu biti samo
prosjeni varijabilni trokovi, jer se jedino oni ne mijenjaju s promjenom u stupnju
STANDARDNI TROKOVI
Standardni trokovi su proraunani trokovi za pruanje odreene

hotelske usluge. Ovi se trokovi utvruju po jedinici uinka i svrha im je odrediti

koliki bi trebali biti stvarni trokovi u normalnim uvjetima poslovanja.
Ako se stvarni trokovi razlikuju od standardnih (tj. ako su vii), standardni
trokovi se nee mijenjati navie, kao na primjer ako je hotelska kuhinja poveala
potronju namirnica za spravljanje odreenog broja obroka krivnjom zaposlenika.
Standardni trokovi u hotelijerstvu pokazuju koliki bi trebali biti trokovi
materijala izrade, trokovi plaa i trokovi proizvodne reije.
Razlikujemo sljedee standardne trokove:
temeljni standardni trokovi - dugoroni standardi koji se ne mijenjaju tijekom
duljeg
niza godina;
idealni standardni trokovi - optimalni standardi koji ne ukljuuju zastoje u radu,
smanjenje stupnja zaposlenosti i rasipanje materijala izrade, ve se temelje na
idealnim utrocima vremena i materijala;
dostini standardni trokovi - temelje se na uinkovitim ali ne idealnim uvjetima
poslovanja;
tekui standardni trokovi - kratkoroni standardi koji se temelje na tekuim
uvjetima
poslovanja.

RACIONALIZIRANJE TROKOVA U HOTELIJERSTVU

Pod racionaliziranjem trokova podrazumijeva se snienje trokova koje
je mogue postii boljom organizacijom proizvodnog procesa i nadzorom nad
uporabom imbenika u procesima pripreme i pruanja hotelskih usluga.
Prilikom racionaliziranja, trokove je potrebno sagledati u odnosu na prihode.
U hotelijerstvu najznaajnije trokove predstavljaju trokovi rada koji ine oko 3540% i trokovi materijala izrade (namirnica i pia) koji ine oko 10-15% ukupnih
hotelskih prihoda.
Pred hotelom postoje brojne mogunosti snienja trokova. Praktiki se svaki
troak moe sniziti, to jest svesti na potrebnu i nunu razinu. Meutim, u ni kojem
sluaju se ne smiju sniavati oni trokovi ija bi sniavanja, makar i u najmanjoj
mjeri, naruila kvalitetu hotelskih usluga.
Mogue je postii racionalizaciju sljedeih vrsta trokova:
materijalnih trokova
trokova rada
trokova razliitih poslovnih funkcija

Materijalne trokove je mogue sniziti:

koliinski
uinkovitijom uporabom materijala, osobito namirnica, smanjenjem kala i
rasipa
veim stupnjem zaposlenosti kapaciteta
sastavom jelovnika i kombiniranjem jela
boljom organizacijom rada
vrijednosno
nabavom po povoljnijim cijenama
postizanjem povoljnijih cijena transporta
uvoenjem stimulacija
novanim stimulacijama za postizanje uteda
postizanjem povoljne radne klime i meuljudskih odnosa
supstitucijom materijala jeftinijim, uz uvjet da to ne teti kvaliteti usluga
pruenih
gostu.
Trokove rada je mogue sniziti:
poveanjem produktivnosti rada
plaanjem po uinku (to je stimulativnija raspodjela)
stvaranjem povoljnijih uvjeta rada
boljom organizacijom rada
smanjenjem fluktuacije, posebno sezonskih zaposlenika
Trokove pojedinih poslovnih funkcija, u prvom redu, je mogue sniziti
boljom organizacijom rada svake od njih.

POJAM I VRSTE CIJENA

Cijena je vrijednost proizvoda izraena u novcu. Cijene su bitan element
trita, stoga, funkcije cijena proizlaze iz funkcija trita. Cijene prenose odreene
informacije - na primjer o standardu (standard je propisana kvaliteta) hotelskih
usluga. Gospodarske subjekte (hotele) potiu na usvajanje manje skupih metoda
proizvodnje, odnosno orijentiraju ih na koritenje resursa u najvrijednije svrhe.
Cijene
su funkcija raspodjele prihoda jer proizvoaima osiguravaju financijsku podlogu
poslovanja, dok potroai ovisno o mogunostima rasporeuju raspoloive
kupovne
fondove na odreene proizvode.
Cijene, dakle, imaju razliita znaenja za potroaa i proizvoaa. Cijena je za

potroaa iznos novca koji on eli ili moe platiti za odreeni proizvod (npr.
hotelske
usluge). Potroa izmeu razliitih mogunosti na tritu bira one proizvode koji
mu
predstavljaju odreenu vrijednost. S druge strane, za proizvoaa je cijena izvor
prihoda, odnosno dobiti. Cijena treba pokriti sve trokove proizvodnje i jo
osigurati
odreenu visinu dobiti jer je to cilj proizvoaa, pri emu treba voditi rauna i o
tritu - pratiti cijene konkurencije, kupovnu mo potroaa, odnose ponude i
potranje i drugo.
U hotelskom poslovanju razlikujemo sljedee vrste cijena:
fakturna cijena - cijena koju ispostavlja dobavlja u fakturi (raunu) zbog naplate
robe prodane kupcu (npr. zbog naplate namirnica, pia, potronog materijala i sl.);
nabavna cijena - cijena koja se dobije kada se fakturnoj cijeni dodaju svi zavisni
trokovi nabave (trokovi utovara, prijevoza, istovara, osiguranja i sl.);
prodajna cijena - cijena po kojoj se obavlja prodaja potroaima, a dobije se kada
se
nabavnoj cijeni doda razlika u cijeni - mara i PDV.
Cijene su izuzetno bitne za konkurentnost svakog hotela i u konanici
odreuju uspjenost poslovanja. Naime, ako razina cijena jednog hotela znatno
premauje cijene konkurentskih hotela, tada e potencijalni potroai hotelske
usluge
koristiti kod konkurencije - dakle, tamo gdje su povoljnije cijene.
Cijene hotelskih usluga mogu se formirati na razliite naine. Bitno je da
cijene odreenom hotelu omogue to vie prihode i dobit. Kako e biti formirane
cijene ovisi o brojnim imbenicima. Na visinu cijena, s jedne strane, utjeu
trokovi
proizvodnje, a s druge strane, intezitet potranje (elastinost potranje),
konkurencija, trina pozicioniranost ponude (ciljna trina skupina kojoj je
usmjerena ponuda) i dravna regulativa. Intezitet potranje koji postoji na tritu
za
odreenom hotelskom uslugom odreuje gornju granicu cijene, dok visina
varijabilnih
trokova odreuje donju granicu cijene. Stupanj konkurencije i poloaj na tritu
rezultiraju formiranjem razliitih cijena za iste hotelske usluge. Svi hoteli, iako u
biti,

nude istovrsne usluge odreuju im razliite cijene. Ako neki hotel djeluje u
uvjetima
vrlo razvijene konkurencije bitno e biti ogranien njenim djelovanjem u svojim
nastojanjima da odredi one cijene koje eli. Hotel svoju ponudu obino formira za
odreenu skupinu potencijalnih potroaa - ciljnu trinu skupinu, te ovisno o
njihovim preferencijama i kupovnoj moi usklauje standarde usluga i cijene.
Cijene hotelske ponude ne mogu se prvenstveno temeljiti na trokovima
proizvodnje, to jest na njihovoj kvaliteti, ve se moraju temeljiti na njihovu
vrednovanju od strane potroaa. Potroae primarno interesira vrijednost koju
dobiju za svoj novac (value for money), to znai da se hoteli prilikom
odreivanja
cijena trebaju voditi vrednovanjem atraktivnosti ponude.
Osnovni cilj utvrivanja cijena je ostvarivanje takvih prihoda koji e
omoguivati kontinuirani proces proizvodnje. Stoga poslovni ciljevi hotela i cijene
ne
smiju biti u koliziji.
Za utvrivanje cijena primjenjuje se:
1) trokovni pristup
2) trini pristup
Ako se cijene utvruju na podlozi trokova, mogu se primjeniti ove metode:
metoda odreivanja mare - cijena se formira na temelju trokova kojima se
dodaje
postotak zarade - mara;
metoda temeljnih cijena - odreuje se ona razina cijena kod koje su pokriveni
ukupni trokovi (dobit = 0). Te se cijene uzimaju kao temelj od kojega se
poveavaju,
a koji istovremeno pokazuje koliko se mogu cijene poveavati kako bi se osigurala
profitabilnost poslovanja;
metoda povrata uloenog kapitala - cijena se odreuje polazei od postavljene
ciljne dobiti. Ova metoda ne uzima u obzir trite i potranju;
metoda obrnutog reda - temelji se na utvrivanju cijena koje polazi od
konkurentskih cijena prema trokovima. Cijena odreena ovom metodom temelji
se
na odreenoj trinoj cijeni i tako danoj dobiti, prema emu se smanjuju trokovi i
prilagouju hotelske usluge;
metoda marginalnih trokova - temelji se na injenici da se svaka cijena sastoji
od

odreene kombinacije prihoda i trokova. Prema ovoj metodi hotel ostvaruje

maksimalne prihode uz uvjet da su marginalni trokovi jednaki marginalnom
prihodu.
Ako se cijene utvruju trinim pristupom, odreuju se one cijene koje
prihvaa trite. Pri tome se uzimaju u obzir cijene koje primjenjuje konkurencija,
struktura trokova, ciljevi politike prodaje i poslovna politika hotela. U
hotelijerstvu ti
ciljevi odreuju utvrivanje razliitih cijena, koje se primjenjuju prema razliitim
ciljnim skupinama, sezoni i obujmu potranje. U hotelijerstvu, stoga, cijene
dijelimo
na:
1) cijene koje se primjenjuju u izravnoj prodaju - objavljuju se u cjeniku
hotelskih
usluga. Radi se o najviim cijenama koje se primjenjuju u razdobljima visoke
potranje (pica sezone), odnosno o niim razinama cijena koje se primjenjuju u
razdobljima smanjenog inteziteta potranje (izvan sezone);
2) cijene koje se primjenjuju u neizravnoj prodaji - ugovorene su cijene i
uvijek su
nie od cijena objavljenih u cjeniku. Ove se cijene ugovaraju s putnikim
agencijama - organizatorima putovanja, koje formiraju i prodaju turistike
aranmane. Razlikujemo alotmanske i cijene po fiksnom zakupu.
Cijena nije jednom za uvijek dana fiksna veliina. Ona ima svoju donju i
gornju granicu. O rasponu cijena ovisi manja ili vea sposobnost neke hotelske
usluge
da akumulira odreenu koliinu financijskih sredstava. Mogunost da se cijena
kree
u odreenom rasponu upuuje nas na zakljuak da nije ispravno utvrivati cijene
samo na osnovu jednog mjerila - na primjer trokova, ve je potrebno uzeti u obzir
vie mjerila - trokove, potranju, konkurenciju, karakteristike hotelskih usluga i
slino.
Turistiko ugostiteljstvo IV.god. - KiT 55

KALKULACIJE
Pojam kalkulacija dolazi od latinske rijei calculatio koja znai izraunavanje.
Kalkulacija je raunski postupak pomou kojega se izraunavaju proizvodne
i
prodajne cijene proizvoda. U hotelijerstvu izraunavamo cijene usluga smjetaja,
usluga prehrane, toenja pia i drugih usluga.

Prodajnu cijenu u hotelijerstvu osim zakona ponude i potranje odreuje i niz

drugih imbenika. Da bi se odredila ispravna politika cijena treba utvrditi koje su
najnie mogue cijene hotelskih usluga po kojima se odreenom hotelu jo isplati
da
posluje, najpovoljnije cijene koje se mogu postii na tritu i koliku dobit treba
ostvariti u odreenim trinim uvjetima.
Pravilna izrada kalkulacija ukljuuje potivanje naela tonosti,
ekonominosti, prilagodljivosti i usporedivosti podataka.
Naelo tonosti podrazumijeva pravilno ukljuivanje svih trokova prema
odgovarajuim uincima - hotelskim uslugama, istinsko prevaljivanje neizravnih
trokova na pojedine hotelske usluge kao nositelje trokova i slino.
Naelo ekonominosti podrazumijeva primjenu one metode kalkulacije koja
iziskuje najmanje trokove njene izrade.
Naelo prilagodljivosti podrazumijeva upotrebu takve metode kalkulacije
koja najbolje odgovara odreenom tipu proizvodnje. U tom smislu, za usluge
smjetaja prikladna je metoda pomou ekvivalentnih brojeva, a za usluge hrane i
pia
dodatna metoda kalkulacije.
Kod svih metoda kalkulacije bitno je osigurati usporedivost podataka jer bi u
protivnom bilo onemogueno na primjer analiziranje planske i obraunske
kalkulacije.
Svrha kalkulacije u hotelijerstvu je da se svaka usluga optereti
odgovarajuim dijelom trokova te da u cijenu urauna i odgovarajui dio
dobiti.
Cijena dobivena kalkulacijom ne treba predstavljati i onu cijenu po kojoj e se
neka hotelska usluga prodati. U hotelijerstvu je navedeno odstupanje uobiajeno,
jer
se prilikom utvrivanja cijena ne moe ignorirati utjecaj trita. To je iz razloga
to
cijena svoju funkciju moe ispunjavati jedinu u sluaju kada je gost prihvati,
odnosno
kada plati odreenu hotelsku uslugu po toj cijeni.
NORMATIVI U HOTELIJERSTVU
Normativ je utvrena i propisana vrsta i koliina namirnica ili pia,
zaina i razliitih dodataka koje treba utroiti na pripremanje odgovarajueg
jela, slastice, napitka i pia prema propisanom receptu.
Ovisno o vrsti usluge, namirnice i pia se vie ili manje obrauju (prerauju),

pri emu se upotrebljavaju unaprijed utvrene koliine materijala izrade odnosno,

normativi materijala. Normative materijala samostalno utvruje svaki
ugostiteljski
objekt, a mogu se razlikovati od jednog do drugog prodajnog mjesta i u istoj
ugostiteljskoj tvrtki. Normativ, osim to pokazuje koliko je materijala potroeno,
isto
tako, karakterizira specifinost usluga koje se pruaju gostima.
Normativi se donose sa sljedeom svrhom:
da se utvrde koliinske jedinice utroka materijala, temeljeno na recepturi za
odreeni broj obroka kod gotovih jela ili za jedno jelo po narudbi
da bi se mogla izraditi kalkulacija
da bi se mogao kontrolirati utroak materijala
da bi se moglo planirati zalihe i dinamiku naruivanja
da bi se definirale hranjive i ekonomske vrijednosti ponuenih jela
da bi se udovoljilo propisima koji odreuju da gost treba dobiti narueno jelo
koje
sadrajem i kvalitetom odgovara naruenom, to jest odgovara odreenim
standardima
Pri izradi normativa prije svega se treba odrediti broj obroka za koji se
normativ izrauje, odnosno veliinu koja e biti osnova za utvrivanje utroka
materijala. Za hotelsku la carte restauraciju, gdje se pripremaju jela po narudbi,
normativi se u pravilu utvruju za jedan obrok. Restauracije koje pripremaju vie
vrsta menua kao osnovu za normativ mogu uzeti deset obroka. U pansionskim
hotelima, gdje vei broj gostiju konzumira ogranieni broj menua, kao osnova za
odreivanje utroka materijala moe se uzeti stotinu obroka.
Normativi trebaju biti aktualni, to znai da se trebaju prilagoavati
zahtjevima gostiju koji se stalno mijenjaju. Normativi se odreuju na osnovu
standardnih recepata. Razlikujemo standardne kalkulacijske recepte koji se
izrauju
prije nego se donese odluka o cijeni u jelovniku i standardne proizvodne recepte u
kojima je naveden i nain pripreme pojedinog jela.
MARA
Mara je u hotelijerstvu razlika izmeu nabavne i prodajne cijene neke
usluge. Izraunava se u postotnom iznosu od vrijednosti utroenog materijala po
nabavnoj cijeni za odreenu uslugu. Visina mare ovisi o nabavnoj cijeni
namirnica i

pia, dobiti koja se nastoji ostvariti, visini ostalih to jest nerasporeenih trokova,
vrsti i kategoriji hotela, sezoni poslovanja, konkurenciji i slinom.
Mara treba pokrivati trokove koji optereuju prodajnu cijenu odreene
usluge i osigurati ostvarivanje dobiti. Naravno da se ista mara nee odrediti za
sve
vrste usluga. Postotak mare s kojim e se poslovati utvruje se u poslovnom
planu
hotela.

Mara se odreuje po sljedeoj formuli:

%
=
mare

(prodajna cijena - nabavna vrijednost materijala)

___________________________________________
nabavna vrijednost materijala

Na primjer, nabavna vrijednost materijala za pripremu jednog naravnog

odreska iznosi 20 kn, a prodajna cijena 60 kn. Postotak mare izraunava se na
sljedei nain:
% mare = (60 -20) 100 / 20 = 200 %
Mara se moe poveati ili smanjiti i bez promjene prodajne cijene. To se
obino dogaa kada dolazi do promjena nabavnih cijena materijala ili kada se
ostvare
smanjenja trokova (kada dolazi do poveanja mare bez promjene prodajne
cijene).
Turistiko ugostiteljstvo IV.god. - KiT 57
Maru, stoga, treba pratiti, to jest nadzirati ostvarenje mare kroz odreena
vremenska
razdoblja - na primjer dnevno, sedmino ili mjeseno.
to je hotel vie kategorije, u pravilu ima i vie trokove to znai da e

poslovati s veom marom, odnosno s veim cijenama i obratno - hoteli niih

kategorija imaju nie trokove, to jest mogu poslovati s manjom marom, odnosno
s
niim cijenama.
VRSTE KALKULACIJE
Kalkulacije s obzirom na vrijeme kada se izrauju mogu biti:
1) planska kalkulacija - koja odreuje cijenu kotanja i pretpostavljenu prodajnu
cijenu usluge. Planske kalkulacije se sastavljaju pred poetak poslovne godine na
temelju obraunske kalkulacije za proteklo razdoblje, planskih pokazatelja i
normativa (za usluge hrane i pia);
2) obraunska kalkulacija (naknadna) - sastavlja se na kraju poslovnog razdoblja
na
temelju raunovodstvenih podataka. Ova vrsta kalkulacije slui za utvrivanje
stvarnih trokova i kontrolu planske kalkulacije. Prilikom sastavljanja obraunske
kalkulacije obino se primjenjuje metoda usporedbe planiranih i ostvarenih
trokova. Svrha usporedbe je utvrditi eventualna odstupanja od plana i prvi je
korak u analizi tih odstupanja.
Kalkulacije u hotelijerstvu jo razlikujemo prema vrsti usluge na koje se
odnose - pa govorimo o kalkulaciji cijene smjetaja, kalkulaciji cijena hrane,
kalkulaciji cijene pia itd.
Kalkuliranje u hotelijerstvu je oteano zbog raznovrsnosti usluga, sezonskog
poslovanja, oscilacija intenziteta potranje i slinog.

Metode kalkulacije
Metode sastavljanja kalkulacija ovise o brojnim imbenicima i mogu biti vrlo
razliite. Osnovni imbenici koji uvjetuju primjenu konkretne metode kalkulacije
jesu
tehnoloki proces proizvodnje i organizacija rada. U hotelijerstvu se obino
primjenjuju sljedee vrste kalkulacije:
1) djelidbena ili divizijska kalkulacija
2) dodatna kalkulacija
3) kalkulacija pomou ekvivalentnih brojeva
Djelidbena ili divizijska metoda kalkulacije se primjenjuje kada nema
potrebe da se trokove razvrstava na izravne i neizravne jer se cijena kalkulira za
samo jedan proizvod (samo jednu hotelsku uslugu) koji automatski sve trokove
preuzima na sebe. Ova se metoda sastoji u tome da se ukupan iznos trokova i
ostali
elementi cijene (dobit) podijele s brojem uinaka - pruenih hotelskih usluga.

Dobiveni rezultat predstvalja cijenu po jedinici usluge.

Cijena hotelske usluge se
dobiva po sljedeoj formuli:
ukupni trokovi + dobit
__________________
broj usluga

Dodatna metoda kalkulacije temelji se na dodavanju neizravnih trokova u

postotnom iznosu na izravne trokove hotelske usluge, odnosno trokove
materijala
izrade i plaa izrade. Neizravni trokovi se obraunavaju prevaljivanjem putem
odreenih kljueva. Uz neizravne trokove na odreenu uslugu prevaljujemo i
iznos
dobiti koji se eli ostvariti. Ova je metoda vrlo slina metodi mare (s tim da
mara u
ugostiteljstvu kao neizravan troak uzima i plae izrade), a
cijena hotelske usluge se
dobiva po sljedeoj formuli:
cijena po jedinici usluge = izravni trokovi + % neizravnih trokova
% neizravnih
trokova

ukupni trokovi - izravni trokovi 100

= ________________________________
izravni trokovi

Kalkulacija pomou ekvivalentnih brojeva upotrebljava se za izraunavanje

cijena povezanih proizvoda, odnosno u sluajevima proizvodnje istovrsnih
proizvoda
koji se razlikuju po kvaliteti pa trokove nije mogue rasporediti primjenom
jednostavne djelidbene metode. U tim se sluajevima uvode ekvivalentni brojevi
koji

odgovaraju razliitom angairanju trokova po proizvodima. U hotelijerstvu se

ova
metoda primjenjuje prilikom izraunavanja cijena usluga smjetaja tako da
pojedinim
vrstama soba i/ili hotelskim apartmanima dodjeljujemo ekvivalentne brojeve
(smjetajne jedinice se mogu razlikovati po komforu, opremljenosti, pogledu npr.
na
more ili park i sl.).
Da bi se cijene smjetaja mogle odreivati po ovoj metodi potrebni su podaci
o kapacitetima (broju smjetajnih jedinica), godinji planovi prihoda i
iskoritenosti
kapaciteta, te godinji plan prodaje (za usluge smjetaja).

OPIS POSLA MENADER HRANE I PIA

TEMELJNE ODGOVORNOSTI
Opi zahtjevi radnog mjesta:
o briga o istoi i urednosti mjesta rada i uniforme te osobnoj higijeni
o ljubaznost u ophoenju s klijentima, njegovanje meuljudskih odnosa
o poznavanje i optimalno iskoritavanje robe, materijala i energije
o poznavanje i uvanje alata, opreme, pomagala za rad i inventara
o primjena normativa
Sadraj posla:
o rukovodi (planira, organizira, vodi, kontrolira) radom jedinica hrane I
pia
o sastavlja raspored rada i organizira radne procese svih organizacija
hrane I pia
o vodi brigu o pribavljanju novih kandidata i sudjeluje u selekcijskim
razgovorima
o uvodi u posao osoblje istog ili podreenog statusa
o kreira potrebe, odabir i nabavku sirovina, materijala za rad te alata i
sredstava za rad
o sudjeluje u izradi budeta i planiranju godinjih ciljeva divizije hrane

o nadzire, koordinira i direktno utjee na kvalitetu usluge u objektima s

hranom, osigurava najvie standarde usluge
o razvija planove edukacije i treninga radnika te vodi edukaciju u svim
objektima hrane
o brine o prisutnosti voditelja organizacijskih jedinica na radu,
koritenju slobodnih dana, plaenih i neplaenih dopusta i godinjih
odmora
o kontrolira istou i kvalitetu radne opreme i osobnu higijenu svojih
podreenih radnika
o prati i implementira nove trendove u poslovanju te se prilagoava
promjenama na tritu
o sastavlja jelovnike i menije hotela, daje prijedloge poboljanja ponude
o zaduen za izradu i kontrolu kalkulacija ponude hrane
o koordinira rad kuhinje i restorana
o sudjeluje u ugovaranju pansionskih i vanpasionskih usluga te
predlae cijene za vanpasionsku potronju
o prima albe gostiju i rjeava ih na primjeren nain
o kvantitativno i kvalitativno kontrolira zaduenja za naruene
namirnice
o u razdoblju poveanog obima posla priprema, izdaje robu iz
asortimana ponude hrane te usluuje goste
o sudjeluje u promoviranju usluga hrane i pia i njihovoj sugestivnoj
prodaji te vodi rauna da se svi zaposleni u odjelu time koriste
Odgovornosti:
o odgovoran za poslovni rezultat odjela, ispunjenje poslovnog plana,
kvalitetu usluge i proizvoda
o odgovoran je za pravovremeno, pravilno i kvalitetno izvravanje
poslova i delegiranih zadataka
o provodi sve raspoloive aktivnosti usmjerene ka maksimalizaciji
profita i optimizaciji trokova
o odgovoran je za kreiranje, primjenu i kontrolu pridravanja normativa
o primjenjuje pozitivne propise i odredbe akata drutva
o osigurava provoenje zakonskih regulativa iz podruja rada
o kreira, implementira, kontrolira i unapreuje pravila i procedure iz
podruja rada te je odgovoran za njihovo potivanje od strane njemu

odgovornog osoblja
o i sve ostalo u duhu radnog mjesta po odluci rukovoditelja

FOOD AND BEVERAGE COST CONTROL

Profit should not be viewed as what is left over after the bills are
paid.
In fact, careful planning is necessary to earn a profit. Obviously,
investors
will not invest in businesses that do not generate enough profit to
make
their investment worthwhile. Because that is true, a more
appropriate formula,
which recognizes and rewards the business owner for the risk
associated
with business ownership or investment, is as follows:
Revenue - Desired Profit = Ideal Expense

Ideal expense, in this case, is defined as managements view of

the
correct or appropriate amount of expense necessary to generate
a given
quantity of revenue. Desired profit is defined as the profit that
the owner
desires to achieve on that predicted quantity of revenue.

This formula clearly places profit as a reward for providing

service,
not a leftover. When foodservice managers deliver quality and
value to their guests, anticipated revenue levels can be achieved
and desired profit is attainable. Desired profit and ideal expense
levels are not, however, easily achieved. In these competitive
times, it takes an astute foodservice operator to consistently
make decisions that will lead to maximizing revenue while
holding expenses to the ideal or appropriate amount. This book
will help you to do just that.
Experienced foodservice
operators know that increasing revenue through adding guests,
suggestive
selling, or possibly raising menu prices is an extremely effective
way of
increasing overall profitability, but only if effective cost
management systems
are in place.
The focus of this text is on managing and controlling expense, not
generating revenue. While the two are clearly related, they are
different.
Marketing efforts, restaurant design and site selection, employee
training
and food preparation methods are all critical links in the
revenueproducing
chain. No amount of effective expense control can solve the
profit problems caused by inadequate revenue resulting from
inferior food
quality or service levels. Effective cost control, when coupled with
managements
aggressive attitude toward meeting and exceeding guests
expectations,
can result in outstanding revenue and profit performance.

Expenses
There are four major foodservice expense categories that you
must learn
to control. They are:
Profit: The Reward for Service 7
1. Food costs
2. Beverage costs
3. Labor costs
4. Other expenses
Food Costs Food costs are the costs associated with actually
producing
the menu items a guest selects. They include the expense of
meats, dairy,
fruits, vegetables, and other categories of food items produced
by the foodservice
operation. When computing food costs, many operators include
the cost of minor paper and plastic items, such as the paper
wrappers used
to wrap sandwiches. In most cases, food costs will make up the
largest or
second largest expense category you must learn to manage.
Beverage Costs Beverage costs are those related to the sale
of alcoholic
beverages. It is interesting to note that it is common practice in
the hospitality
industry to consider beverage costs of a nonalcoholic nature as
an
expense in the food cost category. Thus, milk, tea, coffee,
carbonated beverages,
and other nonalcoholic beverage items are not generally
considered
a beverage cost.
Alcoholic beverages accounted for in the beverage cost category
include

beer, wine, and liquor. This category may also include the costs
of
ingredients necessary to produce these drinks, such as cherries,
lemons,
olives, limes, mixers like carbonated beverages and juices, and
other items
commonly used in the production and service of alcoholic
beverages.
Labor Costs Labor costs include the cost of all employees
necessary to
run the business. This expense category would also include the
amount of
any taxes you are required to pay when you have employees on
your payroll.
Some operators find it helpful to include the cost of management
in
this category. Others prefer to place the cost of managers in the
other expense
category. In most operations, however, labor costs are second
only
to food costs in total dollars spent. If management is included as
a labor
cost rather than an other expense, then this category can well be
even
larger than the food cost category.
Other Expenses Other expenses include all expenses that are
neither
food, nor beverage, nor labor. Examples include franchise fees,
utilities, rent, linen, and such items as china, glassware, kitchen
knives, and pots
and pans. While this expense category is sometimes incorrectly
referred
to as minor expenses, your ability to successfully control this
expense
area is critical to the overall profitability of your foodservice unit.

Cost control is defined as the process used by managers to

regulate
costs and guard against excessive costs. It is an ongoing process
and involves every step in the chain of purchasing, receiving,
storing, issuing, and preparing food and beverages for sale, as
well
as training and scheduling the personnel involved. The particular
methods used to control costs vary from one establishment to
another,
depending in part on the nature and scope of operations, but
the principles behind these methods are constant. The obvious
objective
is to eliminate excessive costs for food, beverages, and labor
to exert some governing power over costs in all areas to ensure
that the enterprise will operate at a profit.
Two of the principal causes of excessive costs are inefficiency
and waste. For example, storing food in refrigerators that are not
cold enough or bottled beer in a warm, sunny room will cause
spoilage
and excessive cost. So will the preparation of an inedible beef
stew or an unpalatable drink. When the stew is thrown into the
garbage can or the drink poured down the drain, the costs of
operation
are increased, but sales are not. Because profit is essentially
the difference between sales and costs, it is apparent that any
increases in cost that do not lead to corresponding increases in
sales can have only one effecta reduction in profits. Clearly,
management
must take steps to guard against such excessive costs.

Sales Control
Although cost control is critically important to the profitable
operation
of any business, cost control alone will not ensure profitability.
Additional steps must be taken to ensure that all sales result

in appropriate income to the business (sales control). For

example,
profits will be adversely affected if a steak listed in the menu for
$18.95 is sold to a customer for $15.95 or if the drink priced to
sell
for $4.50 is sold for $2.50. Therefore, it is important to require
that
each employee record each sale accurately.
In addition, it is useful to compare sales records to production
records to ensure that all quantities produced are accounted for.
Although it is unfortunate that some employees are not
completely
honest, it is a fact of life that must be taken into account in food
and beverage operations. Therefore, guest checks are usually
numbered
to ensure accountability. Sometimes duplicate copies of the
checks, clearly identified as duplicates so they are not confused
with the originals, are used to reconcile kitchen production with
recorded sales. When the checks and duplicates are numbered
sequentially,
missing numbers can be noted and investigated at once.
Establishments that use industry-specific computer programs
find that control is much easier to institute than those without
such programs. For example, this chapter illustrates one such
program
that makes it very difficult for menu items to be priced
incorrectly,
and makes it very easy to reconcile kitchen production with
recorded sales. A number of other techniques will be discussed in
Chapter 12, which includes a more thorough treatment of this
complex
topic.
Responsibility for Control
Responsibility for every aspect of any food and beverage
enterprise
rests with management. Control, therefore, is clearly a
responsibility

of management. In some food and beverage enterprises

probably the majoritymanagers take personal charge of
directing
and supervising the control procedures in every phase of
operations.
In others, managers delegate some or all of the work to
subordinates.
The nature, size, and scope of operations help determine
the extent to which managers can exercise direct control rather
than delegate responsibility. In general, the larger and more
complex
the operation, the more likely it is that control procedures will
be supervised by subordinates. Job titles for these subordinates
include food controller, beverage controller, assistant manager,
supervisor,
and a number of others.
Throughout this text, several job titles are used for those having
responsibility for supervising food, beverage, or labor control
procedures. In the majority of food and beverage enterprises, one
is
likely to find control procedures supervised directly by managers,
so that title is used most often. In larger operations, one may find
food controllers and beverage controllers. Today, there are
comparatively
few of these, but the job titles are still useful in discussions
of control principles and will appear in various chapters.
Because food and beverage operations are so varied, it is
impossible
to identify with any precision the job titles of those responsible
for specific controls in a particular type of food and beverage
operation. The use of one job title rather than another in this
text is not intended to suggest that any particular task should be
assigned to any particular job title. In that sense, the specific job
titles used are of little importance. The significant point is that
management is ultimately responsible for seeing that appropriate
control procedures are established, either by attending to the
work

personally or by assigning it to others.

At each stage of operation, it is necessary to institute control in
order to prevent the kinds of problems mentioned earlier. Control
may be accomplished in a variety of ways, and anyone who
attempts
to manage a food and beverage operation should be aware
of the range of techniques available.
The particular techniques selected for use in a given situation
depend on the nature of the material or service requiring control
and on the degree of difficulty inherent in instituting such control.
Thus, deciding on the appropriate control technique to adopt in a
given situation is not always simple. Some of the more common
techniques are discussed in the following paragraphs.
Control Techniques
The control techniques available to a manager include the
following:
1. Establishing standards
2. Establishing procedures
3. Training
4. Setting examples
5. Observing and correcting employee actions
6. Requiring records and reports
7. Disciplining employees
8. Preparing and following budgets
Establishing Standards
Standards are defined as rules or measures established for
making comparisons and judgments. In business these standards
are set by management and are used for judging the extent to
which results meet expectations. Several types of standards are
useful in
establishing control over food and beverage operations. It is
important
to develop a working understanding of these several types of
standards before proceeding.
Quality standards are used to define the degree of excellence

of raw materials, finished products, and, by extension, work. In

one
sense, establishing quality standards is a grading process. Most
food items are graded according to degree of excellence (many of
them by government: the Department of Agriculture in the United
States and similar agencies in other nations), and management
should establish a quality standard for each food item that is to
be
purchased. Beef, for example, is generally available in a number
of
different grades for restaurant and institutional use, and it is
important
to determine which grade will be used for the preparation
of a particular menu item.
Beverage items also require quality standards. For example,
some spirits improve with age, and a 12-year-old scotch whiskey
is
generally considered to be of a higher quality than one that is
only
8 years old. Management in beverage operations must determine
which beverage items are of appropriate quality to ensure
customer
satisfaction.
Quality standards must also be determined for the workforce.
In some hotels and fine restaurants, higher degrees of skill are
required
for the production and service of elaborate menu items.
Lower levels of skill would probably be acceptable in the average
roadside diner.
Quantity standards, defined as measures of weight, count, or
volume, are used to make comparisons and judgments.
Management
must establish a number of quantity standards. Standard
portion sizes for food and beverage products and standards for
work output are simple examples. The portion size for every food
item served must be clearly established. Each shrimp cocktail

should contain a predetermined number of shrimp of specified

size,
a certain measure of sauce, and clearly identified quantities of
garnishes.
A portion of soup should be identified as to size of bowl or
cup to be used, or the size of the ladle used to portion it, and the
quantity of any garnish to be added. Similarly, entree items
must
be identified as to the number of ounces or pieces. Surrounding
items, such as vegetables, should be portioned with a spoon of a
particular size, as with peas, or identified by count, as with
asparagus
spears.
In bar operations, management must establish a standard
quantity for each measure of liquor used. In many instances, bars
operate with standard drink recipes indicating the specific
quantities
of ingredients to be used in preparing particular drinks.
Quantity standards are often important in the control of labor
costs as well. When planning staff schedules, it is useful to know,
for example, the number of tables or seats a server can cover
during
a given period or the number of sandwiches a pantry worker can
make per hour.
In addition to quality and quantity standards, it is ultimately
necessary to determine and set cost standards for operation.
Cost
standards are more commonly referred to as standard costs.
The term standard cost is defined as the cost of goods or
services
identified, approved, and accepted by management. Standard
costs are used for various purposes. They may be compared with
actual costs in order to make judgments about the actual costs,
and they may be used as a basis for establishing sales prices.
Paradoxically,
a standard cost is simultaneously both realistic and an
ideal. For example, if one bottle of liquor containing 33.8 ounces

costs $11.83 to purchase, each ounce has a value of $.35. That

is,
the standard cost of 1 ounce is $.35. If the entire bottle is used to
prepare drinks, each of which contains 1 ounce of the liquor, the
standard cost of the liquor in each drink is $.35. Based on the
actual
purchase price of the bottle, that is the real cost of 1 ounce.
However, this is an ideal: It does not take into account the
possibility
of spillage or evaporation, both of which are likely to occur in
bar operations.
Standard costs are useful in measuring the effectiveness of
operations
in food and beverage establishments. As discussed later,
comparing standard costs with actual costs can help determine
how effectively food and beverage materials and labor resources
are
being used in day-to-day operations. Standard costs are
particularly
useful in cost control because they provide a means for
management
to compare what is actually happening in an enterprise
with what should be happening, given the standards established
for operations.
Standard costs must be calculated. There are various methods
for doing this, each of which is discussed in detail in later
chapters.
In the case of foods and beverages, various kinds of calculations
are necessary, the simplest form of which has been previously
illustrated
in the discussion of the standard cost of 1 ounce of liquor.
In the case of labor, determination of standard costs is rather
more
complex.
Establishing Procedures
In addition to establishing standards for quality, quantity, and

cost, food and beverage managers must establish standard

procedures.
Procedures are the methods employed to prepare products
or perform jobs. Standard procedures are those that have
been
established as the correct methods, routines, and techniques for
day-to-day operations. As discussed in later chapters,
maintaining effective control over food, beverage, and labor costs
requires establishing
standard procedures for every phase of operations.
Ordering and purchasing procedures must be standardized to
ensure that ingredients used to make food and beverage
products
are purchased at appropriate times in needed quantities, at the
most favorable prices, and are of appropriate quality for their
intended
use. Receiving procedures must be standardized so that all
goods received conform in quality, quantity, and cost to those
ordered.
Standard storing procedures must be put into effect to guard
against both spoilage and theft, either of which will lead to
excessive
costs.
Issuing must be standardized so that food and beverage items
will be used in the order in which they are received, thus
preventing
spoilage and the resulting excessive costs. To further guard
against
spoilage and theft, the quantities of foods and beverages issued
must be linked to carefully determined production needs.
Moreover,
records of issues can be used to calculate cost per item
produced;
such costs can then be compared with standard costs to
determine the efficiency of production and the effectiveness of
operations.
Production procedures must be standardized for a number of

reasons. One of the most important of these is customer

satisfaction.
Any given item should be produced by the same method and
with the same ingredients every time it is served. It should also
be
served in the same quantity each time, partly so that regular
customers
will be given the same quantity each time they order the
item, and partly to maintain cost standards.
Training
Although establishing standards and standard procedures is
necessary for control, doing so is really just the first step in a
process.
None of the standards are of any significance unless employees
are aware of them, and employees will not become aware of the
standards unless management is willing to undertake staff
training.
Training is a process by which managers teach employees how
work is to be done, given the standards and standard procedures
established. For example, if management has established a
standard
4-ounce portion size for hamburgers, then all employees
responsible
for producing portions of hamburgers must be made
aware that 4 ounces is the correct portion size. Moreover, each of
these employees must be trained to produce portions of the
standard
size at his or her workstation, using the correct equipment
and supplies provided for doing so. If all employees are not aware
of the relevant standards and standard procedures established
for
their work and are not trained to follow these standards, the
standards
are completely useless.
Any foodservice manager who trains employees would doubtless

agree that training is difficult, frustrating, time-consuming,

and, in the short run, costly. Perhaps that is why a substantial
number of poor managers ignore it and simply put new
employees
to work without devoting any time to demonstrating and
explaining
what they are to do. Sometimes a new employee is merely
introduced
to a co-worker, who is then expected to train the new person.
Occasionally this works reasonably well; more often it does not,
frequently because the co-worker is either unwilling or unable to
train the new employee. After all, the typical foodservice
employee
is not hired for his or her ability to train others.
If employees are not suitably trained to follow established
standards
and standard procedures, the control aspects of the managers
job become difficult, at best; sometimes control becomes
impossible.
This topic is discussed further in relevant sections of the
text and in the chapters on labor control.
Setting Examples
Sometimes the process of establishing standards and standard
procedures is not quite as formal as the foregoing discussion may
suggest. In many instances, standards are established in a very
informal way: Employees in an operation follow the examples set
by the managerthe managers behavior, manner, responses to
questions, and even a failure to speak or take action in some
situations.
In general, the behavior of individuals in a group tends to
be influenced by the actions, statements, and attitudes of their
leaders.
The attitudes and work habits of a manager are evident as he
or she performs various tasks in the course of a workday. The
behavior
of the manager will influence the manner in which employees

perform their work. If the manager who has occasion to help

employees plate food for the dining room serves incorrect portion
sizes, employees will be more likely to do the same when the
manager
is not there. Similarly, if a manager is inclined to wrap parcels
of food to take home for personal use, employees will be more
likely
to do so. And if the manager observes them doing so and fails to
end the practice, the amount of food leaving the premises will
usually
increase.
It must be noted that any manager must be consistent in setting
examples, as well as in directing, regulating, and restraining
employees
and their actions. In far too many cases, managers appear
not to have long-range and short-range goals clearly in mind as
they go about the business of managing. Consequently, their
examples,
actions, directions, and responses to employees questions
do not present a clear and consistent view to subordinates. Such
inconsistency confuses employees and has the effect of working
against the control processes and procedures in effect.
Observing and Correcting Employee Actions
If a manager were to see a bartender mixing drinks without
measuring the ingredients and did not take time to remind the
individual
to measure quantities carefully, then the bartender may
reasonably assume that his or her work met the managers
standards.
The manager would have missed an excellent opportunity
to improve the bartenders work habits and to maintain control.
Similarly, if a manager were to observe a receiving clerk failing to
verify that quantities of meat delivered conformed to the quantity
on the invoice and did not correct the individual, the employee
may
never know that his or her performance was unacceptable.
One of a managers important tasks is to observe the actions of

all employees continually as they go about their daily jobs,

judging
those actions in the light of the standards and standard
procedures
established for their work. If any are failing to follow the
standards,
it is a managers responsibility to correct their performance to the
extent necessary at the appropriate time.
Requiring Records and Reports
Obviously, no manager can be in all places at all times to observe
employees actions. The owner/manager of a small operation
can observe employee actions to a far greater extent than can
the
manager of a larger operationone consisting, for example, of
several
bars and dining rooms, seating hundreds of guests and
employing
hundreds of personnel. The larger the establishment, the
more likely it is that managers observations must be indirect
rather than direct. Their observations must be abstracted and
inferred from a variety of records and reports.
An example of such a report is the statement of income
illustrated
in the Chapter 1. The statement of income summarizes cost
and sales information for a particular period. The figures in the
statement of income can be used to calculate cost-to-sales ratios
of various kinds. These are normally compared with ratios for
previous
periods, and judgments are made about operations on the
basis of these comparisons. If the comparisons are considered
satisfactory
to management, this implies, in general, that the performance
of employees has been acceptable during the period covered
by the statement. If the comparisons are unsatisfactory, the
implication
is that some or all of the standards and standard procedures

have not been followed. A manager cannot normally pinpoint

specific
problems from such a general report as the statement of income;
other more specific and more timely reports and records are
usually required. Some of these may be developed daily, others
weekly or monthly, as discussed in later chapters. At this point, it
is important to recognize that managers need timely information
to
determine whether long-range and short-range goals and
subgoals
are being met. If timely records and reports are not available,
opportunities
for taking corrective action may be lost. The variety and
extent of the records and reports developed and used for control
purposes are discussed in greater detail in later chapters.
Disciplining Employees
Discipline is defined as action taken to admonish, chastise, or
reprimand an employee for work performance or personal
behavior
incompatible with established standards. It is a term with
negative
connotations, suggesting the threats and punishments used on
children by some parents. Discipline, therefore, is a difficult topic
to address.
Foodservice managers generally prefer to avoid the need for
discipline
by improving the hiring practices in their organizations. By
selecting the right people for the various jobsthose with the
experience,
skill, and personal characteristics that match the job
requirements
the number of individuals requiring some level of discipline
can be reduced to a bare minimum. However, every manager
must face the fact that at times, an individual staff member must
be disciplined.
Discipline is used as a control technique in many food and
beverage

operations and may take any of a number of forms, as discussed

in the following paragraphs. It is a valuable technique if
used properly and judiciously.
Discipline is not the same as observing and correcting employee
actions; it is the next step beyond. Before resorting to discipline,
managers are likely to have made reasonable, though
unsuccessful,
efforts to correct the actions of an employee. Discipline is called
for only if corrective action has failed. At this point, managers
commonly
resort to some words or actions that employees normally
regard as punishing, in the broadest sense of that term. One
assumes
that the standards for work performance and personal behavior
are known and understood by all employees, either because
they have been given appropriate training and instruction by
management
or because they should be aware of the norms for acceptable
behavior in the workplace. For example, suppose an employee
has been trained to follow specific performance standards and
does
not do so. A supervisor, given his responsibility to observe and
correct
employees actions, notices the employees failure to follow the
performance standards and calls his attention to the need to
adhere
to the standards in which he was trained. If repeated efforts
aimed at obtaining improved performance from the employee are
entirely unsuccessful, some discipline is required. The employees
poor performance is called to his attention again by his
supervisor,
probably more directly and forcefully. On this second occasion,
the
supervisors approach is likely to be more severe. Most
responsible
managers hope that the second such occasion will be the last and
that the admonition will bring about the necessary improvement.

However, if it does not, then it will be necessary to take

progressively
more stern, forceful, and, finally, punishing actions, the last
of which would be firing. If an employee was worth hiring, he or
she
should be worth keeping, and all suitable efforts should be made
to bring that employees job performance into line. Therefore,
this
final stepfiringis normally reserved for use only if it is simply
impossible to modify the employees job performance or personal
behavior. On some rare occasionsin the case of theft, for
example
it is used immediately.
On another level, a manager responsible for poor financial
performance
in one unit of a chain organization may have this fact
pointed out to him or her by top management in any number of
ways. The possibilities range from quiet discussion to heated
admonition,
or from demotion or transfer to firing. Finally, no employee
at any level of an organization is completely immune from
the possibility of disciplinary action.
It is important to recognize the desirability of keeping the number
of individuals terminated to a minimum. A high rate of employee
turnover because of excessive firings can be very costly,
leading to such additional expenses as newspaper advertising for
new help, higher rates for unemployment insurance contributions
(in some states), lower rates of productivity, higher training costs,
and a number of other costs.
On one hand, it must be understood that the object of discipline
is to change or modify employees job performance or personal
behavior
to improve performance so that the work is done in conformance
with the standards and procedures that management
has identified as those most likely to achieve the organizations
goals and objectives. On the other hand, it should be apparent
that

disciplinary action generally has negative connotations in the

minds of employees, most of whom would normally prefer to
avoid
any such unpleasantness. If certain behavior patterns (those that
follow the standards and procedures established by
management)
lead to positive and pleasant rewards, and others (those that
ignore
managements standards and procedures) bring the negative and
unpleasant consequences associated with disciplinary action,
then
most employees will generally work toward the former and avoid
the latter. The very fact that employees know that continual
failure to follow established standards can lead to unpleasantness
tends
to have the desirable effect of making job performance and
personal
behavior conform to appropriate standards.
Preparing and Following Budgets
Preparing and following budgets may be the most common
technique for controlling business operations. A budget is
defined
as a financial plan and may be described as a realistic expression
of managements goals and objectives expressed in financial
terms.
Many businesses establish budgets for specific aspects of
operation.
Thus, there are sales budgets, cash flow budgets, capital
equipment budgets, and advertising budgets, among others.
Food and beverage operations also use budgetsmany of the
same types of budgets that are used in other businesses. Many
restaurants prepare capital equipment budgets, for example,
because
of the ongoing need to replace equipment that wears out and
to purchase new types of equipment that becomes available in
the

market. Capital equipment is typically very costly, and a financial

plan must be established before making such purchases.
Advertising
budgets are established so that appropriate levels of funds can
be made available to generate a particular level of sales.
The most important type of budget a food and beverage manager
can prepare is an operating budget. Stated in dollar terms,
this is a forecast of sales activity and an estimate of costs that
will
be incurred in the process of generating sales. By extension, the
budget indicates the profit that should result after the costs of
producing
those sales have been met. An operating budget is clearly a
financial plan for the period it covers. In this text, the discussion
of budgets is restricted to operating budgets, because the
operating
budget is most closely aligned with food, beverage, and labor
cost
control.
For established restaurants, preparation of an operating budget
normally begins with historical informationthe financial records
of the business. In addition, one needs estimates of anticipated
changes in costs and sales and in the business environment.
Thus, if federal or state laws will affect wage rates paid to
employees
in the period covered by the budget being prepared, this
information
must be factored into the planning. Similarly, if the
establishments
real estate tax rates have been increased or decreased, that
information should be reflected in the budget. More difficult to
deal
with, but equally important, are the effects of poor weather
conditions
on future crops, anticipated shortages of beef due to cattlemens
reductions in herds, and other such general conditions, including
trends in the economy that may affect future costs and

sales.
In new establishments that lack financial statements for previous
years, information derived from a market analysis and from
a managers previous experience in the industry provide the best
alternative sources of data for budget preparation. When no
market
analysis is available, or when the manager is not widely
experienced
in the food and beverage business, or when both of these are
true, it may be that no effort is made to prepare a budget. When
this is the case, management has missed an opportunity to use
one
of the most useful of all control techniques.
Preparing an Operating Budget
As previously stated, an operating budget is normally prepared
using historical information from previous budgets and other
financial
records. This information, together with anticipated
changes in sales and costs, provides the basic data needed to
prepare
an operating budget for an upcoming period. Operating budgets
can be prepared for any period of timea day, a week, a month,
a quarter, six months, or a full year. Typically, an operating
budget
for one full year is prepared first and then broken down into
smaller
units for shorter time periods. Budgets for these shorter periods
may not reflect equal sales and costs in every instance. This is
the case in seasonal restaurants. Thus, for example, if the budget
for
a restaurant forecasts $1,600,000 in sales for the year, each
quarter
would not necessarily forecast sales of $400,000. The first and
fourth quarters may be busy periods for the restaurant, whereas
the second and third quarters may be slow. The manager may
forecast
$500,000 in sales for the first and fourth quarters and only

$300,000 in sales for each of the second and third quarters. In

addition, the manager may forecast substantial profits for the
busy
quarters and very little for the slow quarters.
To illustrate the preparation of a budget, consider as an example
the Graduate Restaurant described in the introduction to
Chapter 1. The statement of income and relevant percentages
derived
from it are reproduced in Figure 2.1. The illustration of budget
preparation is for a static budget. A static budget is one that is
prepared assuming only one level of business activity for the
period
(i.e., $1,600,000 in sales).
In the previous chapter, distinctions were drawn between
controllable
and noncontrollable costs, and between fixed and variable
costs. To prepare an operating budget, it is necessary to
determine
which costs are fixed and which are variable. That can be more
complex than it sounds, and the determinations made by
management
in one restaurant may be incorrect or inappropriate for another.
Figure 2.2 lists the assumptions about fixed and variable costs
that were used in the preparation of the operating budget
illustrated in Figure 2.3.
Using those assumptions, we begin the process of preparing an
operating budget for the Graduate Restaurant for the coming
fiscal
year. The initial step in this process is to examine sales figures
from
the recent past to note evident trends, if any. In some
establishments,
the examination of sales records may reveal regular increases
in sales from year to year; in others, decreases may be seen;
in still others, changes from year to year may show no discernible
pattern. In any case, it is the responsibility of the owner or
manager

to analyze past sales for this purpose. Information from such an

analysis can be of great value in projecting sales levels for the
period
to be covered by the budget.
The next step in the budgeting process is to examine the external
environment and assess any conditions or factors that could
affect sales volume in the coming year. These include general
economic
conditions in the nation and in the immediate geographical
area; population changes; changes that may affect transportation
to the establishment, including new highways and bus routes;
and
any number of other external variables, including new
competition
from planned restaurants.
Another important step is to review any planned changes in the
operation that will affect sales volume. For example, any plans to
increase or decrease menu prices will clearly affect sales volume,
and the impact of such changes must be clearly assessed. The
impact
of such varied possibilities as anticipated changes in the number
of seats in the restaurant, in the number of items listed in the
menu, in the particular menu items offered, and in levels of
advertising
must also be considered.
After conducting the aforementioned assessments, the next
logical procedure is to determine the nature and extent of
changes
in cost levels, some of which will be dictated by anticipated
changes in sales volume and others of which will occur
independent of volume
changes. Some variable costs are certain to be affected by
changes in volume, but may also be affected by other factors.
Increased
sales volume may necessitate hiring additional servers,
and a union labor contract may include a new hourly wage for all

employees. There are many other possibilities for cost increases

a clause in a lease dictating a rent increase effective on a

particular
date, higher utility rates, anticipated increases in the costs of
particular
foods, and any number of others. Any anticipated changes
in cost and sales levels must be considered and factored into the
new operating budget.
Assume that the management of the Graduate Restaurant has
carefully examined past cost and sales figures and has assessed
the impact of various anticipated changes in both internal and
external
conditions on costs and sales.
The following changes are anticipated:
1. Both food and beverage sales are expected to increase by 5
percent.
2. Fixed salaries and wages will increase by 4 percent.
3. Variable salaries and wages will continue to be the same
percentage of sales.
4. The cost of employee benefits will increase, but will continue
to be the same percentage of salaries and wages.
5. Other controllable costs will increase by $6,500.
6. Occupancy costs will increase by $2,000.
7. Food and beverage cost percentages will remain the same.
8. Interest and depreciation will remain the same.
Based on these anticipated changes, the budget for the Graduate
Restaurant for the coming fiscal year will be as illustrated in
Figure 2.3.

Sales
Food Beverage
Total Sales Cost of Sales

INCOME STATEMENT
Year Ended December 31, 200X
Percent of
Sales
$ 786,250.00 85.0%
$ 138,750.00 15.0%
$ 925,000.00 100.0%

Food
$ 275,187.00
Beverage
$ 34,688.00
Total Cost of Sales
$ 309,875.00
Gross Profit
$ 615,125.00
Controllable Expenses
Salaries and Wages
$ 185,000.00
Employee Benefits
$ 46,250.00
Other Controllable Expenses
$ 138,750.00
Total Controllable Expenses
$ 370,000.00
Income Before Occupancy Costs,
$ 245,125.00
Interest, Depreciation, and Income Taxes
Occupancy Costs
$ 78,625.00
Interest
$ 13,875.00
Depreciation
$ 46,250.00
Total
$ 138,750.00
Restaurant Profit
$ 106,375.00

Figure 2.1 The Graduate Restaurant income statement

35.0% (of food)

25.0% (of beverage)
33.5%
66.5%
20.0%
5.0%
15.0%
40.0%
26.5%
8.5%
1.5%
5.0%
15.0%
11.5%

Fixed Costs
Occupancy Costs
Other Controllable Costs Fixed Salari
Depreciation

Variable Costs
Cost of Food
Cost of Beverages Salaries an

* Salaries and wages are semivariable costs, so they must be divided into their fixed and variable
components. In the illustration, we have assumed that 60% of total salaries and wages is fixed and th

** Variable salaries and wages are assumed to be associated with food sales. Therefore, other salarie

Figure 2.2 Fixed and variable costs in the Graduate

Restaurant

PROJECTED OPERATING BUDGET

Year Ended December, 200X
Change

Upcoming
Year

Sales
Food
Beverage
Total Sales
Cost of Sales
Food
Beverage

$ 786,250.00
$ 138,750.00
$ 925,000.00
$ 275,187.00
$ 34,688.00

Total Cost of Sales

Gross Profit
Controllable
Expenses
Variable Salaries and Wages
Employee Benefits
Other Controllable Expenses

$ 111,000.00

Total

$ 46,251.00 $ 971,251.00
$ 13,760.00 $ 288,947.00
$ 1,735.00 $ 36,423.00

$ 309,875.00

$ 15,495.00 $ 325,370.00

$ 615,125.00 $ 30,756.00

$ 645,881.00

$ 4,440.00
$ 115,440.00
$ 3,603.00 $ 77,603.00
$ 2,001.00 $ 48,251.00
$ 6,500.00 $ 145,250.00

$ 74,000.00
$ 46,250.00
$ 138,750.00

Total Controllable Expenses

Income Before Occupancy Costs,
Interest, Depreciation, and Income
Occupancy Costs
Interest
Depreciation

$39,313.00 $ 825,563.00
$ 6,938.00 $ 145,688.00

$ 370,000.00

$ 16,544.00 $ 386,544.00

$ 245,125.00

$ 259,337.00

$ 78,625.00
$ 13,875.00
$ 46,250.00

$ 2,000.00

$ 138,750.00

$ 80,625.00
$ 13,875.00
$ 46,250.00
$ 140,750.00

Restaurant Profit

$ 106,375.00

$ 118,587.00

Assuming that the projections in the operating budget for sales,

costs, and profits are acceptable to management, it will be
adopted
as the plan of action for the covered period. If the projections are
unacceptable, management will reexamine both the assumptions
on which the budget was based and the budget figures
themselves.
A reexamination of this nature may suggest the desirability of
additional
changes affecting sales or costs that may lead to more
acceptable
results. Before the adoption of the budget, the effects of
such potential changes can be tested by means of the techniques
of cost/volume/profit analysis, the principal subject of the
following
chapter.
Once an operating budget is accepted and adopted for an
upcoming
period, it becomes a standard against which operating
performance
is measured as the fiscal year progresses. To use it effectively
for this purpose, the operating budget may be broken down
into smaller units for shorter time periods, as discussed earlier.
This may result in monthly or quarterly budgets, with sales and
cost projections with which actual figures can be compared. The
budget projections become the standards or targets for the
covered
periods. If cost and sales figures for a given period do not meet
expectations as identified in the budget, there will be an effort to
identify the causes. Once the causes have been identified, it is
possible
and desirable to take remedial actions to ensure better
performance
in the next operating period. If, for example, sales do not

meet budget projections and costs are too high for the level of
sales
recorded, some remedial action will clearly be required. If payroll
or any other controllable cost is greater than the amount
budgeted,
then management should attempt to determine the causes of the
excessive costs and take appropriate measures to keep future
costs
at more suitable levels.
One must recognize that budget projections are merely targets
and are often incorrect. Sales levels are often higher or lower
than
projections, because the people who prepare budgetsowners,
managers, and accountantsare often unable to project the
future
accurately. Sometimes this is caused by their failure to take all of
the information at hand into account when preparing the
operating
budget. A new office building down the street, for example, may
generate additional luncheon business that was not accurately
anticipated,
or planned advertising may bring in more customers than
the manager had expected. Conversely, unexpected road
construction
outside a restaurant may cause a significant decrease in sales
volume for some period of time, or the unexpected closing of a
nearby manufacturing facility may bring about a loss of business.
To counteract the inherent shortcomings of fixed operating
budgets, a manager can prepare a budget designed to project
sales
and costs for several levels of business activity. This is called a
flexible budget. Flexible budgets are normally prepared for
levels
of business volume above and below the expected level. The idea
is
that if the level of sales is higher or lower than expected,
management

already has a new operating budget available with appropriate

projections of costs for the particular sales level.
THE CONTROL PROCESS
As indicated earlier in this chapter, control is defined as a process
by which managers attempt to direct, regulate, and restrain the
actions of people in order to achieve desired goals. The control
process
consists of four steps:
1. Establish standards and standard procedures for operation.
2. Train all individuals to follow established standards and
standard procedures.
3. Monitor performance and compare actual performances
with established standards.
4. Take appropriate action to correct deviations from standards.
Sometimes investigation reveals that an established standard
is actually unrealistic or inappropriate. If that is the case, then
management should consider changing the standard.
To illustrate the relevance of the control process to food and
beverage management, consider the following example. Imagine
a
restaurant owner who has taken great care to establish goals for
his business. One of those goals is to serve the finest food in the
area. To reach this goal, the owner has established standards and
standard procedures that help define his meaning of the finest.
For one menu itemprime sirloin steakthe standard is made
clear by the use of the term prime, which specifies certain
specific
characteristics in beef. The standards and standard procedures
for
the chef and the steward reflect the owners wish that only prime
beef is to be purchased for the production of this menu item.
Employees
receiving deliveries of meat from purveyors have been

trained to follow standard procedures, which include checking the

quality of the beef delivered by examining it and verifying that
the
USDA grade stamp is present. The restaurant manager must
monitor
operations regularly, checking to see personally that the beef
purchased meets the standards set. This may be done in any
number
of ways, one of which is by examining the raw beef in the
refrigerator.
The manager knows that if operations are not monitored and this
results in orders placed for a lower grade of beef, regular
customers will notice the difference. Some will complain; most
will
notthey will simply find a restaurant that really has the prime
beef promised by its menu. Therefore, whenever the manager
finds
that the quality of beef purchased deviates from the standards,
appropriate
remedial action must be taken if the owners goal of offering
the finest food is to be met.
There is a clear need for control in every phase of food and
beverage
operations. Control is one key to successful food and beverage
management and must be established if success is to be
achieved. Experience throughout the industry has long proven
that
establishing control means instituting the four-step process
identified
in the preceding list.
Control system is the term used to describe that collection of
interrelated
and interdependent control techniques and procedures
in use in a given food and beverage operation. Historically,
control
systems in foodservice and related enterprises were heavily
dependent

on paper-and-pencil methods. Many systems required difficult

and time-consuming calculations. In recent years, however,
various time- and labor-saving devices have been introduced to
decrease
our industrys historical reliance on paper-and-pencil calculations
and extensive paper records. Fortunately, these are disappearing
from todays food and beverage operations. Some
operations rely on electronic cash registers, for example,
programmed
to keep records of numbers of portions sold and to print
out simple reports to management at the end of a day. Many
restaurants
depend on computers, with software designed to accumulate
and summarize information that was simply not available
in the past. Still others have invested in amazingly complex
computer
systems to assist in maintaining control over operations in
ways that previously were not possible.
One of the primary reasons that the Graduate Restaurant has
been able to control its costs so well is that it has a computer
system
with software designed specifically for restaurant operations. A
schematic diagram of its layout is shown in Figure 2.4. A file
server
located in the managers office functions as the hub of the
computer
network. Terminals with keypads and printers have been installed
at two servers stations. One workstation is on the managers
desk.
Remote printers have been installed at the bar and at the cooks
station.
The control features for purchasing, receiving, issuing, producing,
and selling described in the following chapters have been pro
grammed into the software. In addition, the system provides
managers
with full access to sales and cost information at any time.
Operations proceed along the following lines: Servers arriving

for work change into uniforms on a lower level (not shown on the
diagram), then proceed to their sidestands in the dining room. On
each of the two sidestands is a small terminal with keypad and
printer that dining room personnel use to log in. In other words,
they record their arrival for work much as they would with a
traditional time clock. Other personnel log in at the terminal in
the
managers office.
Guests enter the dining room, leaving coats in the coatroom.
They are seated by the supervisor, who leaves menus at the
table.
A server greets the guests and takes their orders for drinks; the
orders are written on a captains pad or an ordinary white pad
rather than on a guest check. Having taken the orders, the server
proceeds to a terminal and opens an account in computer
memory.
This account is equivalent to a guest check. The process requires
the server to enter a personal identification code, the table
number,
the number of guests, and a special code used for creating a new
account. With the account opened, the server uses a numeric
code
to enter the customers orders for drinks. This information, along
with the time of the order, is now in computer memory, which
has
been programmed with correct prices for all drinks. The system is
programmed to send the recorded drink orders to the bartender
at
the bar, where they are printed on a remote printer. The hard
copy,
provided by the remote printer, is an order for the bartender to
prepare the drinks. This hard copy includes the server number,
table number, and order time. The bartender removes the order
from the printer, makes the drinks, and places the printed order
on the tray with the drinks, thus eliminating questions about
which

drinks are for which server and what time the orders were
entered.
At the appropriate time, the server follows similar procedures
for placing food orders. Different codes are used for foods and
drinks, and the computer is programmed to send food orders to
the
remote printers at the cooks station. All ordered items are stored
in memory, but the only items appearing on the remote printer at
any preparation station are those appropriate to that station.
Thus,
food orders are not sent to the bar, and orders for coffee, handled
by the servers themselves, do not appear on any remote printers.
After a diner has finished the meal, the server obtains the guest
check by requesting it via the terminal and printer at the
sidestand.
With this system, the guest check is merely a hard copy of the
data
stored in the computer, accessed by table and server number.
This
hard copy is torn from the printer and given to the diner. In the
Graduate Restaurant each server acts as a cashier for his or her
own checks, and settlement is recorded for each check as the
server
receives cash or a credit card. At the end of a shift the server
reports
to the managers office to turn in the cash, checks, and credit
card
vouchers for his or her sales. Bill Young sits at his terminal to
obtain
summary data showing charge and cash sales for that particular
server. He collects cash and charge vouchers accordingly. Before
changing out of uniform and leaving the premises, each server
logs out, using the managers terminal.
At any time of day, Bill Young can monitor operations at will.
Data such as gross sales volume, numbers of customers served,
numbers of checks outstanding, sales mix, numbers of portions of

particular items sold, and any number of other kinds of

information
may be of special interest at given times throughout the day.
At the conclusion of business, Bill prints a detailed breakdown
of the days business. The software has been programmed to
provide
total dollar sales categorized into cash sales and charge sales,
with the charge sales divided by type of credit card; total dollar
sales
separated into food sales and beverage sales, with the food sales
broken down into dollar sales by menu category or by individual
menu items; average dollar sale per customer, per server, per
seat,
per table, or per hour, or any combination of these; seat
turnover;
number of customers per server, per hour, per meal, and per day;
number of orders of each food and beverage item sold (a
reflection
of the sales mix); total dollar sales per hour; sales in any
category
for the period to date; total payroll cost for the day, for any part
of
the day, or for the period to date; and a vast amount of food and
beverage cost data, including standard costs.
Today most food and beverage operators are using some type
of computer control system as an aid to managing. For some, the
computer system is simply a modern electronic cash register with
features that earlier cash register were not able to provide. In
growing
numbers of operations, however, the computer systems are
increasingly
complex and designed to provide both quick access to
needed information and sophisticated managerial control over
most or all operations in the restaurant.
An important concept in the control process is cost/benefit
ratio:

the relationship between the costs incurred in instituting and

maintaining a single control or control system, and the benefits
or
savings derived by doing so. It should be obvious that no control
measure can be instituted without some cost. Sometimes that
cost
is relatively insignificant. Yet sometimes it is so great that careful
consideration must be given to the extent of the expected benefit
before one feels justified in incurring the cost. Occasionally the
cost
may prove to be completely prohibitive. A relatively insignificant
cost is required to institute one basic control measure: locking
the
front and back doors at night to prevent burglary. In contrast,
relocating
a restaurant cashiers desk to a position judged to be more
suitable for preventing customers from leaving without paying
the
checks may be somewhat more costly. Installing a sophisticated
new time clock and hiring a new employee trained to operate it
would require even greater, ongoing costs. Establishing a new
control
department, hiring a food and beverage controller and
appropriate
support staff, and supplying the staff with equipment and
supplies would obviously require largeand possibly prohibitive
amounts of money.
In judging whether the cost of any control procedure is justified,
one must take into consideration how long a period of time will
be
required for the savings to pay for the cost of the new procedure

the payback period. For example, purchasing and installing locks

for food storage facilities to prevent employee theft costs a
relatively
small amount of money and could result in immediate savings.
The

payback period might be only one month or less and would

clearly
be justified. Relocating the cashiers station to a more suitable
position
may result in only minimal savings, and might have a payback
period of a year or longer. Establishing a new control department,
hiring a food and beverage controller and appropriate
support staff may have annual costs that would exceed the
financial
savings and thus never justify the costs incurred.
One must keep clearly in mind the primary purposes of cost
and sales control measures: to guard against excessive costs and
to ensure that all sales result in appropriate income. In other
words, some identifiable financial benefit must be obtainable
from
the introduction of any control device or control procedure or
from
the hiring of any staff member responsible for instituting controls.
Benefits must always exceed costs. Before instituting any new
procedures
for control, management should first determine that the
anticipated savings will be greater than the cost of the new
procedures.
If controls cost more than the benefits they deliver, their
value is doubtful at best. In normal circumstances, it is not
sensible
to institute any controls that cost more than they save. Stated in
other terms, one might say that one should not normally spend a
dollar to save dollar. In numeric terms, one might say that the
ratio of cost to benefit should always be less than 1/1.
Other Considerations
Before instituting any control procedure and incurring the
consequent
dollar costs, one should also look at the nonquantifiable effects.
Some of these may be beneficial; others may not. Control
systems
and procedures generally affect many aspects of an operation,

sometimes in negative ways not anticipated by management. For

example, a system designed to verify that all food transported by
servers from kitchen to dining room is appropriately recorded on
guest checks may slow down service, reduce seat turnover, and
even result in cold food being served to guests. Similarly, the in
stallation of a time clock to obtain accurate data for payroll
purposes
may cause resentment among longtime, loyal, and valued
employees, some of whom might seek other employment rather
than punch a time clock. Thus, management should carefully
estimate
the nonmonetary outcomes of any control system or procedure
before putting it into effect.

MENU PLANINNG
The textbook refers to the menu as the foundation for control. It
is the beginning and end of the control process. There are three
key steps in the menu control process. Menu planning is the first
step whereby the manager/owner determines what are the most
profitable and popular items which will be sold (prepared). In a
retail F&B operation it is critical to plan what products will be
acceptable to the buying public, what price they would be willing
to pay, and at what level of profitability for the operation. There is
also a chicken and egg type question which arises: Which comes
first, the facility design or the menu? It should be clear that the
design of any given restaurant should follow the development of
the menu. The types of equipment and facilities depends on what
items will be prepared, what kind of atmosphere is desired, the
price which must be charged, and the location chosen. The
available budget also is a major consideration. The following

figure represents a very comprehensive overview of the menu

planning process.
Menu Planning
When planning and designing an menu for a foodservice
operation you need to take the following criteria into
consideration:
How many customers will you serve per meal?
What type of service will be provided?
What kitchen facilities are available?
What are the hours of service?
What type of service is desired?
What is the largest number of customers/meal period?
What type of menu is contemplated?
How many menu choices will there be?
What is the seat turnover?
What seating arrangement will be utilized?
What table sizes will be used (two seat, four seat, etc.)?
What is the aisle size and space per seat?
How many service stations are there in the dining area?
What is the amount and type of table side service?
What is the price range of the menu items?
How many employees are there and what are their skill
levels?
What is the availability of all ingredients during the year?
What are the local and seasonal market conditions affecting
cost and availability of food products and related needs?
What is the quality level chosen?
Is the menu compatible with the restaurant theme or
cuisine?
Is there any special equipment required?
What is the food cost goal?
What can be done to avoid menu monotony?

What is the profit goal that you expect to achieve?

What menu prices would be attractive, and meet these
goals?
What balance do you need between light and heavy meals,
regular items, specials, etc.?

One of the most common design faults in F&B operations is not

having enough space allocated for the production areas. There is
often too much space allocated to the service area as this is
considered revenue generating space. Many operations want to
maximize the revenue generating space and this means that they
do not leave enough space for production. Cramped kitchens,
inadequate dishwashing space, lack of proper storage and
receiving facilities, poor staff rooms for lockers, eating, taking
breaks, and washrooms are all often a result of attempting to
maximize the revenue generating space. The general rule is that
there should be a minimum ratio of 1/3 to 2/3 for production
versus service space. This will allow for proper production and
service of the required menu items.
The second key step is the pricing decision. Your textbook has a
very good discussion of ways to price menu items. One of the
most common approaches is determining what the traffic will
bear or How much can I charge and get away with it? Few
operations have the luxury of pricing in this fashion. It has no
bearing on the profitability of the menu and does not take the
customers needs and wants into consideration. Another less than
satisfactory approach is looking at what the competition is
charging and then charging the same or less for similar products.
This is also a poor approach because you have not taken into
consideration the cost structure of the competitor which may be
lower than yours thereby allowing him/her to sell at a lower price.
It may be that you cannot make a profit at those prices. If so, you
should consider selling a different product or price yours

appropriately and then use marketing concepts to differentiate

your product. Why sell products at a loss? It is a slippery slope to
bankruptcy to do that. In institutional operations it is just as
critical to price your menu items properly. You will be generally be
required to follow a strict budget. This is often more difficult than
in a retail type operation. You do not have the ability to increase
traffic or to adjust prices in mid contract so you have much less
flexibility. If you make a mistake in determining your selling price,
you may be stuck with that decision for some time.
The final step in the menu control process is that of evaluation.
You must keep on top of your sales records at all times. You need
to know which items are selling and how profitable they are. The
best way to do this is by using menu engineering. There are a
variety of ways in which this can be done but the most common
approach is to look at how many of each item you sell on a day to
day basis (popularity) and how much you make on each one
(profitability). Pages 124 through 137 in the textbook outline this
process very well. You are trying to place your menu items in four
categories, those which are:
a. popular and profitable (stars)
b. popular but not profitable (plow horses)
c. profitable but not popular (puzzles)
d. those which are neither profitable nor popular (dogs)
You may have seen this matrix approach used to describe other
concepts but it does work well for analyzing the menu. The
question most often asked is: how does one differentiate between
profitable and unprofitable and between popular and unpopular?
The most common approach is to use averaging. Looking at the
total number of items sold and expressing the sales of each item
as a percentage works well. You then can take the items which
have a percentage above the average as being popular and those
below the average as unpopular. The same can be done for
profitability. Taking the average profitability of all items (total
contribution margin (CM) divided by the number of items sold
gives the average CM. When you look at the CM of each

individual item you can then easily see which items are above the
average and those which are below. Your book has a very good
discussion of how you handle each of the various categories.
There is often a move toward eliminating dogs from your menu.
Be careful here! Remember you are using averaging so you will
always have some items below average. You may want to use
this analysis as a guideline just to train your staff in what they
should be trying to sell most. Another factor to consider is
something called the veto vote. Often F&B operations are
required to keep items on the menu that are clearly dogs. Let us
say for example, that four individuals are going to lunch and
three want hamburgers but one says that they are on a diet and
only want to have a salad. Perhaps an establishment does not
want to carry a salad on the menu but if they dont, they will lose
the whole group to a restaurant where all the group can be
satisfied. In other words, that one person can veto where the
group goes to lunch. Even though a salad may be a dog, it must
be kept on the menu.

Getting started
Good managers learn to understand, control, and manage their
expenses.
Consider the case of Tabreshia Larson, the food and beverage
director of
the 200-room Renaud Hotel, located in a college town and built
near an
interstate highway. Tabreshia has just received her end-of-theyear operating
reports for the current year. She is interested in comparing these
results
to those of the prior year. The numbers she received are shown in
Figure 1.3.
Tabreshia is concerned, but she is not sure why. Revenue is
higher
than last year, so she feels her guests must like the products and
services
they receive from her operation. In fact, repeat business from
corporate
meetings and special-events meals is really beginning to develop.
Profits
are greater than last year also, but Tabreshia has the uneasy
feeling that
things are not going so well. The kitchen appears to run smoothly.
The
staff, however, often runs out of needed items, and there seems
to be a

large amount of leftover food thrown away on a regular basis.

Sometimes,
there seem to be too many staff members on the property; at
other times,
guests have to wait too long to get served. Tabreshia also feels
that employee
theft may be occurring, but she certainly doesnt have the time to
watch every storage area within her operation. Tabreshia also
senses that
the hotel general manager, Islah Richards, who is Tabreshias
boss, is less
than pleased with her departments performance. She would
really like to
get a handle on the problem (if there is one), but how and where
should
she start?
FIGURE 1.3 _ Renaud Hotel Operating Results
This Year
Last Year
Revenue
$1,106,040
$850,100
Expense
$1,017,557
$773,591
Profits
88,483
76,509
The answer for Tabreshia, and for you, if you want to develop a
serious
expense control system, is very simple. You start with basic
mathematics
skills that you must have to properly analyze your expenses. The
mathematics used in this text consist only of addition,
subtraction, multiplication,
and division. These tools will be sufficient to build a cost control
system that will help you manage effectively the expenses you
incur.
What would it mean if a fellow foodservice manager told you that
he
spent $500 on food yesterday? Obviously, it means little unless
you know

more about his operation. Should he have spent $500 yesterday?

Was that
too much? Too little? Was it a good day? These questions raise
a difficult
problem. How can you compare expenses today with those of
yesterday,
or your foodservice unit with another, so that you can see how
well you
are doing?
While this concept of changing value
is useful in the area of finance, it is vexing when one wants to
answer the
simple question, Am I doing as well today as I was doing five
years ago?
Alternatively, consider the problem of a multiunit manager. Two
units
sell tacos on either side of a large city. One uses $500 worth of
food products
each day; the other unit uses $600 worth of food products each
day.
Does the second unit use an additional $100 worth of food each
day because
it has more guests or because it is less efficient in utilizing the
food?
The answer to all of the preceding questions, and more, can be
determined
if we use percentages to relate expenses incurred to revenue
generated. Percentage calculations are important for at least two
major
reasons. First and foremost, percentages are the most common
standard
used for evaluating costs in the foodservice industry. Therefore,
knowledge
of what a percent is and how it is calculated is vital. Second, as a

manager in the foodservice industry, you will be evaluated

primarily on
your ability to compute, analyze, and control these percent
figures. Percent
calculations are used extensively in this text and are a
cornerstone of
any effective cost control system.
Percent Review
Understanding percents and how they are mathematically
computed is
important. The following review may be helpful for some readers.
If you
thoroughly understand the percent concept, you may skip this
section and
the Computing Percent section and proceed directly to the Using
Percent
section.
Percent (%) means out of each hundred. Thus, 10 percent
would
mean 10 out of each 100. If we asked how many guests would
buy blue-berry pie on a given day, and the answer is 10 percent,
then 10 people out
of each 100 we serve will select blueberry pie. If 52 percent of
our employees
are female, then 52 out of each 100 employees are female. If 15
percent of your employees will receive a raise this month, then
15 out of
100 employees will get their raise.
There are three ways to write a percent as shown in Figure 1.4.
Common Form In its common form, the % sign is used to
express the
percentage. If we say 10%, then we mean 10 out of each 100
and no further
explanation is necessary. The common form, the %, is
equivalent to

the same amount expressed in either the fraction or the decimal

form.
Fraction Form In fraction form, the percent is expressed as the
part, or
a portion of 100. Thus, 10 percent is written as 10 over 100
(10/100). This
is simply another way of expressing the relationship between the
part (10)
and the whole (100).
Decimal Form A decimal is a number developed from the
counting system
we use. It is based on the fact that we count to 10 then start over
again.
In other words, each of our major units, 10s, 100s, 1,000s, and so
on, are
based on the use of 10s, and each number can easily be divided
by 10. Instead
of using the % sign, the decimal form uses the (.) or decimal
point to
express the percent relationship. Thus, 10% is expressed as 0.10
in decimal
form. The numbers to the right of the decimal point express the
percentage.
Each of these three methods of expressing percentages is used in
the
foodservice industry, and to be successful you must develop a
clear understanding
of how a percentage is computed. Once that is known, you
can express the percentage in any form that is useful to you.
Form
1% 10% 100%
Common 1% 10% 100%
Fraction 1/100 10/100 100/100
Decimal 0.01 0.10 1.00

Computing Percent
To determine what percent one number is of another number,
divide the

number that is the part by the number that is the whole. Usually,
but not
always, this means dividing the smaller number by the larger
number. For
example, assume that 840 guests were served during a banquet
at your hotel;
420 of them asked for coffee with their meal. To find what percent
of
your guests ordered coffee, divide the part (420) by the whole
(840).
The process looks as follows:
Part
____________ = %
Whole
420
____________ = 0,50 = 50%
840
Getting Started 11
Thus, 50% (common form), 50/100 (fraction form), or 0.50
(decimal
form) represents the proportion of people at the banquet who
ordered coffee.
A large number of new foodservice managers have difficulty
computing
percent figures. It is easy to forget which number goes on the
top and
which number goes on the bottom. In general, if you attempt to
compute
a percentage and get a whole number (a number larger than 1),
either a
mistake has been made or costs are extremely high!

Many people also become confused when converting from one

form
of percent to another. If that is a problem, remember the
following conversion
rules:
1. To convert from common form to decimal form, move the
decimal
two places to the left, that is, 50.00% = 0.50.
2. To convert from decimal form to common form, move the
decimal
two places to the right, that is, 0.40 =40.00%.

In a commercial foodservice operation, the whole is usually a

revenue
figure. Expenses and profits are the parts, which are usually
expressed
in terms of a percent. It is interesting to note that, in the United
States, the same system in use for our numbers is in use for our
money.
Each dime contains 10 pennies, each dollar contains 10 dimes,
and so on.
Thus, it is true that a percent, when discussing money, refer to
cents out
of each dollar as well as out of each 100 dollars. When we say
10% of a
dollar, we mean 10 cents, or 10 cents out of each dollar.
Likewise, 25%
of a dollar represents 25 cents, 50% of a dollar represents 50
cents, and
100% of a dollar represents $1.00.
Sometimes, when using percent to express the relationship
between
portions of a dollar and the whole, we find that the part is,
indeed, larger

than the whole. Figure 1.5 demonstrates the three possibilities

that exist
when computing a percentage.
USING PERCENT %
FIGURE 1.5 Percent Computation
Possibilities
Part is smaller than the whole
Part is equal to the whole
Part is larger than the whole

Examples
61
100
35
35
125
50

= 61%
= 100%
= 250%

Results
Always less than 100%
Always equals 100%
Always greater than 100%

Consider a restaurant that you are operating. Imagine that your revenues for a week
are in the amount of $1,600. Expenses for the same week are $1,200. Given these facts and the
information presented earlier in this chapter, your profit formula for the week would look as follows:

Revenue - Expense = Profit

or
$1,600 - $1,200 = $400

If you had planned for a $500 profit for the week, you would have been
short.
Using the alternative profit formula presented earlier, you would find:
Revenue - Desired Profit = Ideal Expense
o
r
$1,600 - $500 = $1,100

Note that expense in this example ($1,200) exceeds ideal

expense ($1,100) and,
thus, too little profit was achieved.
These numbers can also be expressed in terms of percent. If we
want to know
what percent of our revenue went to pay for our expenses, we
would compute it
as follows:
Expense
-- = Expense %
Revenue
or
$1,200
-- = 0.75, or 75%
$1,600

Another way to state this relationship is to say that each dollar of revenue
costs 75 cents to produce. Also, each revenue dollar taken in results in 25
cents profit:

$1.00 Revenue - $0.75 Expense = $0.25 Profit

As long as expense is smaller than revenue, some profit will be

generated, even
if it is not as much as you had planned. You can compute profit
percent using the
following formula:
Profit
-- = Profit %
Revenue

In our example:

$400 Profit
-- = 25% Profit
$1,600 Revenue
We can compute what we had planned our profit percent to be by dividing de- sired
profit ($500) by revenue ($1,600):

$500 Desired Profit

= 31.25% Desired Profit
$1,600 Revenue

In simple terms, we had hoped to make 31.25 percent profit, but instead made
only 25 percent profit. Excess costs could account for the difference. If these costs
could be identified and corrected, we could perhaps achieve the desired profit per-

centage. Most foodservice operators compute many cost percentages, not just one. The
major cost divisions used in foodservice are as follows:

Food and beverage cost

Labor cost
Other expense
A modified profit formula, therefore, looks as follows:

Revenue - (Food and Beverage Cost + Labor Cost + Other Expenses) = Pro
Put in another format, the equation looks as follows:

Revenue (100%)
Food and Beverage Cost %
Labor Cost %
Other Expense %
= Profit %
Regardless of the approach used, foodservice managers must evaluate their expenses, and they use percents to do so.

UNDERSTANDING THE INCOME

(PROFIT AND LOSS) STATEME

Consider Figure 1.6, an example from Pats Steakhouse. All

of Pats expenses and
profits can be computed as percents by using the revenue figure,
$400,000, as the
whole, with expenses and profit representing the parts as on the
following page:

Food and Beverage Cost

= Food Beverage Cost %
Revenue
or
$150,000
= 37.50%
$400,000
Labor Cost
= Labor Cost %
Revenue
or
$175,000
= 43.75%
$400,000
Other Expenses
= Other Expense %
Revenue
or
$25,000
= 6.25%
$400,000
Total Expense
= Total Expense %
Revenue
or
$350,000
= 87.50%
$400,000
Profit
= Profit %
Revenue
or
$50,000
= 12.50%
$400,000

 FIGURE 1.6 Pats Steakhouse

Revenue
Expenses
Food and Beverage Cost
Labor Cost
Other Expense
Total Expense

$400,000
$150,000
175,000
25,000
$350,000

Profit

$ 50,000

FIGURE 1.7 Pats Steakhouse P&L

Revenue
Food and Beverage Cost
Labor Cost
Other Expense

$400,000

100%

$150,000

37.50%

175,000

43.75%

25,000

6.25%

Total Expense

$350,000

87.50%

Profit

$ 50,000

12.50%

An accounting tool that details revenue,

expenses, and profit for a given pe- riod
of time, is called the income statement,
which is commonly called the profit- andloss statement (P&L). It lists revenue, food
and beverage cost, labor cost, and other
expense. The P&L also identifies profits
since, as you recall, profits are gen- erated
by the formula:

Revenue - Expense = Profit

Figure 1.7 is a simplified P&L statement for

Pats Steakhouse. Note the simi- larity to Figure
1.6. This time, however, expenses and profit are
expressed in terms of both dollar amount and
percent of
revenue.
Another way of looking at Pats P&L is shown
in Figure 1.8. The pieces of the pie represent
Pats cost and profit categories. Costs and profit
total 100 percent, which is equal to Pats total
revenues. To put it in another way, out of every
revenue dollar that Pat generates, 100
percent is designated as either costs or profit.
Pat knows from the P&L that revenues
represent 100 percent of the total dol- lars
available to cover expenses and provide
for a profit. Food and beverage cost

FIGURE 1.8 Pats Steakhouse Costs and Profit as a Percentage of Revenues

Profit
12.50%
Other expenses 6.25%
Food and
beverage cost 37.50%

Labor cost
43.75%

is 37.50 percent, and labor cost percentage in the steakhouse

equals 43.75 percent. Other expense percentage equals 6.25
percent, and her total expense percent is
87.50 percent (37.50 + 43.75 + 6.25 = 87.50 percent). The
steakhouse profit equals 12.50 percent. Thus, for each dollar
in revenue, Pat earns a profit of
12.50 cents. Pats revenue, expense, and profit information is
contained in the steakhouses P&L.
In restaurants that serve alcohol, food costs and beverage costs
are most often separated into two categories in the P&L.
Likewise, food revenues and beverage revenues are reported
separately. This is done so that the food cost can be com- pared
to food revenues, and the beverage cost can be compared to
beverage rev- enues. Suppose, for example, that one manager is
responsible for controlling food cost percent in the restaurant and

another manager is responsible for controlling beverage cost

percent in the bar. Separation of these two departments, then,
is especially helpful when evaluating the performance of these
two managers. It also helps these managers to quickly identify
and anticipate problems associated with their costs and identify
ways to correct these problems.
UNDERSTANDING THE BUDGET

ome foodservice managers do not generate revenue on a daily basis. Consider,

for a moment, the foodservice manager at a summer camp run for children. In this
case, parents pay a fixed fee to cover housing, activities, and meals
for a set period of time. The foodservice director, in this
situation, is just one of several managers who must share this
revenue. If too many dollars are spent on providing housing or
play activities, too few dollars may be available to provide an
adequate quan- tity or quality of meals. On the other hand, if too
many dollars are spent on pro- viding foodservice, there may not
be enough left to cover other needed expense ar- eas. In a case
like this, foodservice operators should prepare a budget. A
budget is simply an estimate of projected revenue, expense, and
profit. In some hospitality companies, the budget is known as the
plan, referring to the fact that the budget details the operations
estimated, or planned for, revenue and expense for a given
accounting period. An accounting period is an hour, day, week,
or month in which an operator wishes to analyze revenue and
expenses.
All effective managers, whether in the commercial (for
profit) or nonprofit sec- tor, use budgets. Budgeting is simply
planning for revenue, expense, and profit. If these items are
planned for, you can determine how close your actual
performance is to your plan or budget. In the summer camp
example, the following information is known:

1 Number of campers: 180

2 Number of meals served to each camper per day: 3
3 Length of campers stay: 7 days
With 180 campers eating 3 meals each day for 7 days,
3,780 meals will be served (180 campers X 3 meals per day X
7 days = 3,780 meals).
Generally, in a case such as the summer camp, the
foodservice director is given a dollar amount that represents the
allowed expense for each meal to be served. For example, if
$1.85 per meal is the amount budgeted for this director, the total

revenue budget would equal $6,993 ($1.85 per meal X 3,780

meals = $6,993).
From this figure, an expense budget can begin to be
developed. In this case, we are interested in the amount of
expenses budgeted and the amount actually spent on expenses.
Equally important, we would be interested in the percent of the
budget actually used, a concept known as performance to
budget.

A simple example may help to firmly establish the idea of budget and per- formance to
budget. Assume that a child has $1.00 per day to spend on candy. On Monday morning, the
childs parents give the child $1.00 for each day of the week, or $7.00 total ($1.00 X 7
days = $7.00). If the child spends only $ 1.00 per day, he or she will be able to buy candy
all week. If, however, too much is spent in any one day, there may not be any money left
at the end of the week. Too ensure a week of candy eating, a good candy purchasing
pattern could be created, such as the one in Figure 1.9. The % of Total column is
computed by dividing $1.00 (the part) by $7.00 (the whole). Notice that we can determine
the percent of total that should have been spent by any given day; that is, each day equals
14.28 per- cent, or 1/7 of the total.
This same logic applies to the foodservice operation. Figure 1.10 represents commonly
used budget periods and their accompanying proportion amount.
Many foodservice operations are changing from one month budget periods
to periods
of 28 days. The 28-day-period approach divides a year into 13 equal pe- riods of 28 days
each. Therefore, each period has four Mondays, four Tuesdays, four Wednesdays, and so on.
This helps the manager compare performance from one period to the next without having to
compensate for extra days in any one period. The downside of this approach is that you can
no longer talk about the month of March, for example, because period 3 would occur during
part of Feb- ruary and part of March. Although using the 28-day-period approach takes a while
to get used to, it is an effective way to measure performance and plan from period to period.
For example, in Camp Eureka, after one weeks camping was completed, we found the
results shown in Figure 1.11.
We can use the expense records from the previous summer as well as our solid industry
knowledge and experience to develop expense budget figures for this sum- mer. In this case,
we are interested in both our plan (budget) and our actual per- formance. Figure 1.12 shows a
performance-to-budget summary with revenue and

FIGURE 1.9 Candy Purchases

Weekday

Budgeted Amount

% of Total

Monday

$1.00

14.28%

Tuesday

$1.00

14.28%

Wednesday

$1.00

14.28%

Thursday

$1.00

14.28%

Friday

$1.00

14.28%

Saturday

$1.00

14.28%

Sunday

$1.00

14.28%

Total

$7.00

100.00%

FIGURE 1.10 Common Foodservice Budget Periods

Budget Period

Portion

% of Total

One week

One day

1/7 or 14.3%

Two-week period

One day
One week

1/14 or 7.1%
1/2 or 50.0%

One month
28 days
30 days
31 days

One
One
One
One

1/4 or 25.0%
1/28 or 3.6%
1/30 or 3.3%
1/31 or 3.2%

Six months

One month

1/6 or 16.7%

One year

One day
One week
One month

1/365 or 0.3%
1/52 or 1.9%
1/12 or 8.3%

week
day
day
day

FIGURE 1.11 Camp Eureka One-Week Budget

Item
Meals Served

Budget

Actual

3,780

3,700

Revenue
Food Expense
Labor Expense
Other Expense

$6,993
$2,600
$2,800
$ 700

$6,993
$2,400
$2,900
$ 965

Profit

$ 893

$ 728

FIGURE 1.12 Camp Eureka Performance to Budget Summary

Item
Meals Served

Budget

Actual

% of Budget

3,780

3,700

97.9%

Revenue
Food Expense
Labor Expense
Other Expense

$6,993
$2,600
$2,800
$ 700

$6,993
$2,400
$2,900
$ 965

100.0%
92.3%
103.6%
137.9%

Total Expense

$6,100

$6,265

102.7%

Profit

$ 893

$ 728

81.5%

expenses presented in terms of both the budget amount and the actual
amount. In all cases, percentages are used to compare actual expense with
the budgeted amount, using the formula:
Actual
= % of Budget
Budget

In this example, revenue remained the same although some campers

skipped (or slept through!) some of their meals. This is often the case when
one fee or price buys a number of meals, whether they are eaten or not. In
some other cases, managers will only receive revenue for meals actually
served. This, of course, is true in a traditional restaurant setting. In either
case, budgeted amount, actual expense, and the concept
of percent of
budget, or performance to budget, are important management tools. In
looking at the Camp Eureka performance-to-budget summary, we can see
that the manager served fewer meals than planned and, thus, spent less on
food than estimated, but spent more on labor than originally thought
necessary. In addition, much more was spent than estimated for other
expenses (137.9 percent of the budgeted amount). As a result, the profit
dollars were lower than planned. This manager has some problems, but
they are not everywhere in the operation.

How do we know that? If our budget was accurate and we are within reasonable limits of our budget, we are said to be in line, or in compliance, with
our budget, because it is difficult to budget exact revenue and expenses. If,
as man- agement, we decided that plus (more than) or minus (less than) 10
percent of budget in each category would be considered in line, or
acceptable, then an examination
of Figure 1.12 shows we are in line with
regard to meals served, food expense, la- bor expense, and total expense.
We are not in line with other expenses because they were 137.9 percent of
the amount originally planned. Thus, they far exceed the
10 percent
variation that was reasonably allowed. Profit also was outside the acceptable boundary we established because it was only 81.5 percent of the
amount budgeted.
Note that figures over 100 percent mean too much (other
expense), while figures below 100 percent mean too little (profit).
Many operators use the concept of significant variation to
determine whether a cost control problem exists. In this case, a
significant variation is any variation
in expected costs that
management feels is an area of concern. This variation can be
caused by costs that were either higher or lower than the amount
originally budgeted or planned for.
When you manage a foodservice operation and you find that
significant variations from your planned results occur, you must:
1 Identify the problem.
2 Determine the cause.
3 Take corrective action.
It is crucial to know the kind of problem you have if you are to be
an effective problem solver. Managements attention must be
focused on the proper place. In this case, the proper areas for
concern are other expense and profit. If, in the future, food
expense became too low, it, too, would be an area of concern.
Why? Remember that

expenses create revenue; thus, it is not your goal to eliminate expense. In

fact, those managers who focus too much on eliminating expense, instead
of building revenue, often find that their expenses are completely
eliminated when they are forced to close their operations doors
permanently because guests did not feel they received good value for the
money spent at that restaurant! Control and management of revenue and
expense are important. Elimination of either is not desired.
As you have seen, revenue and expense directly impact profit. Your
important role as a hospitality manager is to analyze, manage, and control
your costs so that you achieve planned results. It can be done, and it can be
fun.
The remainder of this text discusses how you can best manage and account
for foodservice revenue and expense. With a good understanding of the
relationship among revenue, expense, and profit, and your ability to analyze
using percentages, you are ready to begin the cost control and cost
management process.

TECHNOLOGY TOOLS

Most hospitality managers would agree that an accurate and timely income
statement (P&L state- ment) is an invaluable aid to their management
efforts. There are a variety of software programs on the market that can
be used to develop this statement for you. You simply fill in the revenue
and expense portions of the program, and a P&L is produced. Variations
include programs that compare your actual results to budgeted figures or
forecasts, to prior-month performance, or to prior-year performance. In
addition, P&Ls can be produced for any time period, including months,
quarters, or years. Most income statement programs will have a budgeting
feature and the ability to maintain historical sales and cost records. Some
of these have been developed specifically for restaurants, but cost-effective
generic products are also available.
A second issue, and one that must be kept foremost in mind, is that of
information accessi- bility. An executive chef, for example, would certainly
need to have information on food cost avail- able to him or her. At the same
time, it may not be wise to allow servers or cooks access to pay- roll
information about others that, while it certainly affects costs, should only be
shared with those who need to know. Thus, as you examine (in this chapter
and others) the cost control technology tools available to you, keep in mind
that not all information should be accessible to all parties,
and that
security of your cost and customer information can be just as critical as
accuracy.
Also, dont forget that to effectively manage your overall operation you will
need to commu- nicate with employees, guests, and vendors. Thus, the
software you will need includes office prod- ucts for word processing,
spreadsheet building, faxes, and e-mail.

Smart Menus
Everything about f/b starts with and is driven by the menu; it has a
continuous impact
on all aspects of the operation. This includes production requirements,
equipment
needs, kitchen layout and staffing/service needs. The menu is an
extension of the golf
clubs f/b marketing plans. The properly planned and smartly designed
menu fuels
revenue and builds a path towards profits while satisfying the target
audience.
Keeping in mind the clich (old, but true) that a golf course menu cant be
everything to
everyone, a first objective for a menu must be simplification for the sake
of execution
and maximum efficiency. This applies to the snack bar as well as the
clubhouse dining
room. Offering several items that use the same raw or prepared
ingredients helps to
streamline ordering, storing and production.
Entrees are the core of a menu. By keeping a menu tight and limiting
choices to
the basic center-of-the-plate food groups (beef, chicken, fish and pasta)
the problems
associated with big menus start to disappear. A smaller menu can be
augmented by daily
specials that regularly change. Emphasis on specials stimulates the
customers curiosity
while also allowing the chef to flex his/her creative muscles. Specials can
also be a great
tool to help move product off the shelves as wanted.
Menu design is more influential in a guests selection than given credit.
Artwork, font
style, readability, descriptions of the food and layout all play parts in
marketing the goods
to the end user. The focal point of a single-sheet menu (upper center) or a
single-fold
menu (interior right side, upper center,) combined with the use of boxing
or highlighting
can have enormous impact on what moves. A slogan (Best In Town!) or a
signature item
also tend to influence what people order.

Following is a list of most common errors made in planning and managing

menus:
Guessing at the price without doing the homework necessary to charge
the correct
amount, one that makes a fair profit while giving value to the guest.
Portion sizes that are too large. The nation is groaning and straining
under the
weight of meals that are far too much for the average human being to
consume.
People are getting fat and sassy. Blame it on the fast food chains, which
have quietly
been upping the ante with value-size and super-size marketing ploys
that have
us all eating more now than we did twenty years ago. Its happening with
soft drinks, tooa large used to be 22 oz. For the golf course it all
translates into
members splitting meals, half-orders, a decline in appetizer and dessert
sales, and
reams of doggie bags going out the door. Few courses have figured out
that if the
portions were reduced to more ordinary quantities, the price could be
reduced, too.
The pre-occupation with quantity over quality is a disturbing trend.
Incorrect wording and misspellings on menus. The error may be a typo or
it could
be from ignorance, but in either case it challenges the credibility of the
kitchen and
management. Its a common sight on the specials chalkboard, too. Note:
Only
the neatest writer or printer should be allowed near a board that requires
longhand.
Menus that have been allowed to deteriorate to unacceptable standards:
Dog-eared,
grease-stained, prices crossed out by hand with new prices scribbled in, to
name a
few good reasons for investing in new menus.
The same set of principles works for the snack bar. Menus that have
missing numbers
or sloppily aligned wording also send out the wrong message.

The menu planning process is ongoing. There should be no such thing as a

final menu.
Thanks to a renewed interest in ethnic and regional foods (television food
networks and
cooking programs) people want new, or management may determine
that change is in
order for other reasons, like profitability and/or popularity issues.
Menu engineering is a term used to evaluate and analyze if an item is a
good fit for the
golf course menu. Using the criteria popular and profitable are all that
is needed to
sort out a strategy for a great menu. A profitable item is ordered often. A
profitable item
produces a high margin that contributes to the bottom line.
The basis of a menu items profitability is not the level of food cost
(percentage,) but the
contribution margin. Just because a menu item has a low cost of goods
percentage does
not declare it a great contributor to an operations profit base. Consider
the following
example:
Menu Item
Food Cost
Menu Price
Food Cost %
Contribution Margin
Chicken Dinner
$3.77
$10.95
35.4%
$7.18
Steak & Lobster
$14.05

$10.90

$24.95

43.7%

Arguably this is an example of the numbers being massaged, a little

mathematical
semantics, if there is such a thing. It illustrates that the goal of an effective
menu strategy
is to increase the contribution margin of a menu item (or take more money
to the bank)
rather than decrease its food cost percentage. The increased margin is
being looked at as
overall input to a courses financial health rather than what it does solely
for f/b.
It is the chefs or f/b managers job to analyze each menu item to
determine if it can be

managed better. Thus, when compared to the entire menu, each item,
based on the two
factors of popularity and profitability (which are determined by menu mix
and plate costs)
will fall into one of four slots defined below.
Profitable but not popular
Popular but not profitable
Both popular and profitable
Both unpopular and not profitable
The latter two categories require little thought. Something neither popular
nor profitable
should be eliminated from the menu. The item popular and profitable is
best left
untouched.
The other two categories are more problematic. Something profitable but
not so popular
may only require a few adjustments:
Reposition the item to a more visible spot on the menu.
Renaming or giving a better description of the item.
Consider a price decrease or add value to the item by offering a larger
portion or
upgrading the quality.
The popular item that is not so profitable gets a similar treatment:
Carefully increase the price or decrease the portion size.
Relocate the item to a not-so-obvious section of the menu.
Menu Prices
Methods for calculating the menu price require a scientific approach rather
than guess
work. Objective pricing strategies can help to guarantee a courses profit
goals while
satisfying a customers perception of the value of the dining experience.
Subjective
pricing, based on hunches and gut feel generally fail to consider profit
requirements and
portion sizes as they relate to what it costs to put the meal on a plate.
Yet managers and chefs tend to use the gut check system is used most
often. Unfortunately
it is the path of least resistance and many times key people are
uneducated about smart
pricing. Setting prices based on profit goals is not that difficult with a bit
research.

Before any objective pricing can happen, two systems must be in place.
Recipe standards: A by-the-book recipe dictates exactly the amounts and
types
of ingredients that must be used to make a menu item. This includes
portion size.
Every menu item is made up of one or more parts. A bottled water is at
the simplest
end of the scale while a dinner plate is an example of an item made up of
many
parts, including garnish, sauces, accompaniments to the entre, a bread
basket that
may be served when the customer is seated, etc.
Each recipe or unit must be assigned a value for cost. It is critical to
know what the
cost is to produce one portion of each component of the menu item,
whether by the
ounce or unit.
There are a variety of procedures for figuring plate costs. Two are most
widely used, the
first accounting for all ingredients, the other only the center of the plate.
In the latter
method management calculates the entre feature (sometimes referred to
as the protein)
and adds a standard or average cost for the non-entre items, including
salad, vegetables,
bread, garnish, etc. This method is more appropriate for a la carte dinners
and banquets.

Examples of method for taking into account all menu item ingredients: Cheeseburger Plate

Component
Hamburger patty
Bun
Cheese slice
Lettuce
Tomato
Mayo
Garnish
French fries
Misc condiments
Total Cost

Spec
4 oz.
4 sesame seed
oz. cheddar
2 leafs iceberg
slice 4x5
oz.
Dill pickle wedge
5 oz.
Catsup, mustard

Cost
.40
.16
.12
.10
.08
.02
.09
.25
.05
1.27

Salmon Dinner
Component
Salmon let
Baked potato/butter
Vegetable
Salad/dressing
Bread
Garnish/lemon
Total Cost

Spec
7 oz.
70 ct.
3 oz.
3 oz. mixed greens
assortment
parsley

Cost
2.25
.30
.25
.28
.25
.15
3.48

Examples of center of the plate method, whereby accompaniments have an average value but the entre is
separate:

Salmon Dinner
Filet Mignon Dinner
Chicken Dinner
Pasta Plate

Spec
7 oz.
8 oz.
chicken
10 oz. linguini

Cost
2.25
3.95
2.78
1.15

Extras
1.23
1.23
1.23
1.23

Total Cost
3.48
5.18
4.01
2.38

After plate cost has been determined, a price can be set, depending
on the COG goals. If a course has a desire to be at a 35% food cost
on the dinner menu, then the majority of top sellers need to be
priced to yield a 65% gross margin. The basic formula for pricing an
item to meet COG criteria is:
Plate cost desired COG % = approximate price to
charge
Examples:
(Salmon Dinner Plate Cost) 3.48 .
35 = $9.94 (Filet Mignon Dinner
Cost) 5.18 .35 = $14.80

No menu is going to list a price at $9.94 or $14.80, which means

management now has the
latitude to shift the price in the direction that best benefits the courses
goals and meets customers perceptions with respect to value. If the
salmon dinner is the top seller on the menu, it makes sense to price it at a
point where it helps to weight or drive the overall COG. Therefore, pricing
it at 10.95 puts the salmon plate at a 31.7% COG.

Tips on Pricing:
Data has shown that people seem uninuenced by prices set at .25 and .75
(e.g. $8.25) when reading the menu. In other words, the same item could
be priced at .50 or .95 or .99 with no perceived loss in value.
Pricing at the turn or similar type of snack bar on a course might be more
convenient of all items are priced at .25 increments with tax included.
This has several advantages
The change-making process is simplied. The employee can process
the sale quicker (which may come in handy as foursomes are often
pressed to move on to the 10th tee.)
The cash register needs no coin other than quarters.
The chance of making an error while giving back change is reduced.

YIELDS
As prices are a result of checking plate costs, so is plate cost affected by a
yield. A
yield is the net weight or volume of a food item after it has been
processed and
made ready for sale to the customer. The processing of many foods means
some sort of
loss during either preparation, cooking or portioning.
Canned goods or product that has been pre-portioned for delivery are
generally associated
with a 100% yield, or no waste. Meats and vegetables that undergo some
sort of trimming,
cleaning or cooking will have a yield factor less than 100%. It is best to
perform yield
tests on items that have high costs or low-cost products that are used in
large quantities.
Nowhere is this task more important than in meats. The typical course that
serves prime
rib, filet mignon and fish would benefit from performing a yield test or two.
It should be
standard operating procedure for the chef.
For example, the cost of a prime rib coming through the back door might
be $6.00 lba
12-lb rib costing $72.00. But as any cook knows, despite a slow-roasting
process even in
a special oven, a prime rib shrinks, perhaps by as much as 20%, not
counting the need to

trim off a bit of fat; the final yield may be only 75%, or a 9-lb edible portion
of rib. This
means that the true cost of the prime rib is not $6.00, but $8.00 per lb.
The yield factor
or percentage is calculated by dividing the usable or edible weight by the
original weight,
then multiplying by 100 to shift the decimal a percentage.
(Usable/servable wt. original wt.) 100 = Ratio of usable wt. to
original wt.
Or
(9 lbs 12 lbs) = .75 100 = 75%
The cost per servable pound is found by dividing the back-door purchase
price by the yield
percentage:
$6.00 lb .75 = $8.00
The cost per servable pound is the information needed to calculate what
the portion cost
actually is, not based on the back-door price. If the prime rib portion in this
example is to
be a 10 oz cut, then dividing $8.00 by 16 (oz.) reveals that the finished
product is 50 cents
an ounce, or $5.00 per portion.
Once the yield percentage has been calculated (and this is a
procedure that need not
be done every time, but deserves at least a monthly spot-check,)
any cook can make an
educated guess as to how much product needs to be ordered and
prepared. For example,
a banquet for 200 people with a 10 oz. cut of prime rib is the featured
entre; the yield
is 80%. Knowing that to serve a 10 oz. cooked portion really means that
12.5 oz. of raw
prime rib will be needed tells a chef that 200 12.5 oz = 2500 oz of raw
meat. 2500 oz
16 = 156.25 lbs need to be ordered.

OSOBLJE
LABOR COSTS
To control labor costs, management must identify factors that influence
the required

number of hours to use. Every golf property is different, but the following
issues all
affect productivity:
MenuItems that involve complex production techniques and are labor
intensive will
require more hours than simpler fare (a sandwich, for example,). Menus
characterized
by convenience foods or product that comes through the back door at an
advanced
stage of preparation are also less labor intensive.
ServiceA course featuring intensive dining room attention and
multiple-step service
procedures, or a one that has chosen to staff areas regardless of little
customer
traffic can expect higher labor costs.
Number of meal periods and total meals served. Predicting how busy a
meal period
will be is never a sure thing, but there are several tools a manager can use
to make
an educated guess and at least get close.
o Keeping track of meal period sales in a logbook, so that days can be
compared
from week to week.
o Reviewing reservation sheets.
o Monitoring weather and cultural events that influence whether people
will stay
home or go out (sporting events, world news, economic trends, etc.)
o Holidays or other calendar events.
Facility design, kitchen layout and equipmentAlthough f/b employees
are often
praised for their adaptability to the poorest of conditions, efficient kitchen
design
can increase productivity and decrease labor costs.
Job descriptionsIn the lower volume course setting, the f/b manager or
chef may
be required to be more hands on, meaning it is expected of them to play
less of
a supervisory role and be more involved in the day to day operations.
Employees
fortunate enough to be cross-trained by management will not only get
more
satisfaction at work, but also be able to do more. A course that promotes
an atmosphere

of teamwork will also benefit from higher productivity. The quality of

supervision
and training is in direct proportion to quality and quantity of output by
staff.
SchedulesAlthough the hospitality business is characterized by long
hours and
hard work, common sense should dictate where performance peaks and
when the
return starts to diminish. More often than not, schedules done by
managers or
chefs reflect (a) the needs of the employee and not the business, or (b) a
lack
of initiative for keeping staffing at smart levels, resulting in understaffing
and
overworking a dedicated few. This leads to several unsatisfactory
outcomes:
o People suddenly find themselves getting a lot of overtime, become used
to it,
and eventually expect it.
o Younger people, perhaps first-time workers, think they want to work fulltime.
The f/b manager happily obliges and the person is ground up and spent six
weeks into the season.
o Schedules are duplicated from week to week, regardless of pattern
changes
in the volume, leading to times when many hours are wasted, or just as
bad,
times when the customer gets short-changed because not enough people
are on
hand to take care of business.
Basic steps need to be followed when making schedules. This piece of
paper posted
weekly deserves to be analyzed to make sure that the labor costs set by
the schedule
will be within the limits established by the courses operating budget. The
manager or
chef must calculate a labor cost percentage based on the labor hours
written into the
schedule. This is done as follows:
Each employees labor hours are converted to labor dollars, daily and
weekly.

 Hours and dollars are totaled to determine a total labor cost, daily and
weekly.
Food and beverage revenues are estimated for the coming week, by
each day.
Daily and weekly labor dollars are divided by daily and weekly net sales
to convert
data to a labor cost percentage.
As most employees are paid differing rates of pay, management may use
an average hourly
rate (based on a previous payroll or by adding up pay rates and dividing)
to convert hours
to dollars.
Estimates for f/b sales can be determined by checking scheduled banquets
and
tournaments for the week, comparing tee sheets to previous weeks play
and using other
tools mentioned above (weather, the logbook, etc.) to make an educated
guess as to how
much business to expect. If the course is keeping data on golfer per cap,
then multiplying
the rounds by the average sales per golfer is an easy way to project that
sector of sales.
In any case, the chart on the following page is what all f/b schedules (cart,
dining room,
banquets, etc.) should look likenot just names and times. The
information at the
bottom is optional, but appears here to emphasize the need for taking
breaks to avoid
overtime and labor law infractions.
SNACK BAR SCHEDULE

Date/Day
Jill
Brian
John
Susie
Kyle
Chris

Mon
10-7
7-2

Total Hrs

18.5

Total Labor $

Tue
10-7

Wed
10-7
7-2

Thu

Fri

Sat
6-2

Sun
6-2

7-2
10-7

9-5

9-5

10-7
4-8

2-8

4-8

18.5

18.5

20

4-8

18.5

2-8
20.5

20.5

135

7-2

7-2
4-8

Total Hrs
39
19.5
28
20
13.5
15

2-8

$145.23 $145.23 $145.23

Projected Sales

$475

$400

$575

$625

$800

$1200

$1100

$5,175

Projected Labor %

30.6%

36.3%

25.3%

23.2%

19.6%

13.4%

14.6%

20.50%

Average Hourly Rate: $7.85

10-7 shifts mandate a one-hour break
All shifts 6-8 hours mandate a half-hour break
Weekly labor percentages are an average of seven days. As in most f/b
scenarios,
the slower days of business will have a higher labor percentage while the
busiest days
(normally weekends) will show a lower-than-average percentage.
When building or creating an f/b schedule, management (including the
chef) is advised to
use a system often referred to as a bar graph. The graph breaks a day
down by hours and
allows the manager to view at a glance how many staff is on the clock at
any one time.
Using the graph helps to expose some of the errors associated with the
method of just
writing in punch-in and punch-out times (9:00 am 5:00 pm, for example.)
Often schedules are constructed to satisfy the needs of peak dining
periods but fail to
address the slower periods, resulting in excess labor during the lead-in
times to a meal
period or at the end of a busy period. Most opportunities for saving labor
can be found
before lunch, in the afternoon between lunch and dinner, and after dinner.
To avoid extra labor costs, the first strategy to employ is staggered
schedules, which
basically means not bringing on everyone at the same time. In most golf
course f/b
operations, the staggering and overlapping of shifts will ensure the
greatest number of
staff on at the same time during peak business, whether at the turn or for
a banquet.
The most aggressive operations will not bring in personnel on the hour
(9:00 am, 11:00
am, 3:00 pm, for example) but will break down the shift into half-hours,
maybe even
quarter-hours to get the maximum bang for the labor buck. This is
management that has
learned that the more people on the clock when not needed, the less work
gets done.

People with no one to talk to or be distracted by accomplish more. Another

truism that
relates to this theory is that all f/b teams work hard when volume is heavy;
but what
separates the truly great team from the average team is what happens
when volume is
slow. The great team never lets upthe down time is used to prepare for
the next rush or
at least put the place back together after the crunch.
Not every employee hired needs to be full-time. Part-time staff is crucial to
the
successful schedule. The f/b manager that relies strictly on full-timers will
likely get
boxed into a situation that causes more hours to be used than necessary.
Split shifts (two
short working periods separated by a longer break than normal) are also
an answer to
meeting the needs of the employee and the f/b budget.
Common scheduling challenges or goofs:
Despite the fact that certain days have equal sales potential (say
Tuesday and
Wednesday,) the totaled hours from shifts isnt remotely close; one day
may have ten
more hours on the schedule with no explanation.
Scheduled overtime. Time-and-a-half translates to unnecessary spent
dollars.
An employee making $10 per hour is now paid $15; granted, the hour was
necessary,
but at a premium of $5 per hour. Pure waste.
Unscheduled breaks. The unpredictability of the hospitality business
makes it
hard to schedule a break. The course or club that does not monitor breaks
but
circumvents the problem by paying people straight through the shift is
leaving itself
open to serious Labor Board issues, primarily because employees time
cards do not
show break documentation. It doesnt matter whether the break was taken
or not.
The time card should reflect a rest period for longer shifts.
The time card is sacred. It is not something to draw cute pictures on nor
should

anyone be allowed to write in changes or cross out punches. Only a

managers and
employees initials or signature should appear for alterations.
Schedules that are not followed. If the course restaurants schedule
shows 500
hours projected, then one would think the payroll summary would match.
Rarely
does this happen. Miraculously the checks issued for a specific pay period
usually
exceed the scheduled hours. How can this be? Simply, staff quickly learns
how to
milk the system to satisfy individual needs. Pity the manager that does not
take the
time to see if all the hard work in making a schedule is actually respected
by
the personnel.
Special Note to the general manager or owner: It is a wise business
practice to
personally hand out payroll checks, at least once or twice per year. This
entails
putting a face (and picture identification) to a name. The idea is to confirm
that no
ghost employees exist, that is, someone else isnt taking the check and
cashing it for
the wrong reason.
Food & Beverage Director/Manager
Summary: Responsible for all f/b production and service for the club.
Directly
supervise the Executive Chef, Assistant Manager, Banquet Sales, Beverage
Manager
and Event Coordinator. Plan and implement budgets; hire, train and
supervise all kitchen
subordinates. Apply marketing principles to assure satisfaction of
customers.
Job Specifics:
Develops operating budget for each f/b department and venues;
monitors and takes
corrective action as necessary to assure that budget goals are attained.
Establish effective orientation and training for any new f/b staff,
maintains ongoing
development of existing personnel via evaluations, continuing interaction
and the

setting of goals.
Ensures that all standard operating procedures for revenue and cost
control are in
place and consistently utilized.
o Takes weekly inventories and generates weekly COG for food and
beverage.
o Monitors labor costs daily, weekly and for pay periods.
o Approves and codes all supplier invoices before submitting to
Accounting.
o Certifies month-end inventory and submits to Accounting by 1st of
following month.
o Responsible for maintaining realistic inventory levels to optimize club
cash flow,
keep storage orderly and minimize waste.
o Maintains POS and accurate daily sales reports; reconciles errors.
o Keeps historical records of special events and day-to-day business for
purposes
of educated forecasts.
o Audits payroll at least monthly.
Inspects to ensure that all safety, sanitation, energy management and
preventive
maintenance plans are in continual use.
Helps plan and approves external and internal marketing and sales
promotion
activities for building f/b business.
Structures the f/b organizational chart for maximum effectiveness.
Maintains balanced staffing and scheduling strategies to meet business
needs.
Defines job descriptions for all subordinate f/b positions.
Reviews menus and accompanying prices and margins proposed by
Executive Chef for
all venues and special events.
Sees that all legal requirements are adhered to including wage and hour
issues,
federal, state and local laws governing alcoholic beverages, and health
department issues.
Researches new products and works with Chef in developing menu
trends and variety
to satisfy customer interests in cuisine.
Maintains current and comprehensive employee files.
Develops and enforces policies and procedures for f/b department.
Monitors purchasing and receiving procedures for products and supplies
to meet

guidelines set for quality and pricing.

Maintains open communications with above-mentioned subordinates via
weekly
management meetings and daily conversation.
Maintains high visibility at the course by greeting and listening to
customers
comments and needs.
Addresses customer complaints personally while keeping General
Manager informed.
Maintains appearance, upkeep, cleanliness and organization of all f/b
facilities.
Monitors employee dress codes according to Handbook.
Auditions and approves all course entertainment.
Executive Chef
Summary: Responsible for all food production related to all f/b venues.
Develop
menus, food purchase specifications and recipes. Supervise production
and staff.
Develop and monitor food and labor budget for the department. Maintain
highest
professional food quality and sanitation standards.
Job Specifics:
Hires, trains and evaluates the work of staff in food production
departments.
Plans menus (with Food and Beverage Director) for all food outlets at the
course.
Schedules and coordinates the work of chefs, cooks and other kitchen
employees to
assure that food preparation is economical and technically correct and
within
budgeted labor cost goals.
Approves the requisition of products and other necessary food supplies.
Ensures that high standards of sanitation, cleanliness and safety are
maintained
throughout all kitchen areas at all times.
Establishes controls to minimize product and supply waste and theft.
Safeguards all food preparation employees by implementing training to
increase their
knowledge about safety, sanitation and accident prevention principles.
Develops standard recipes and techniques for food preparation and
presentation

which help to assure consistently high quality and to minimize food costs;
exercises
portion control for all items served and assists in establishing menu selling
prices.
Prepares necessary data for applicable parts of the budget. Projects
annual food,
labor and other costs and monitors actual financial results. Takes
corrective action
as necessary to help assure that financial goals are met.
Attends food and beverage staff and management meetings.
Consults with the Event Coordinator about food production aspects of
special events
being planned.
Cooks or directly supervises the cooking of items that require skillful
preparation.
Evaluates food products to assure that quality standards are consistently
attained.
Interacts with applicable food and beverage managers to assure that
food production
consistently exceeds customer expectations.
Plans and manages the employee meal program.
Evaluates products to assure that quality, price and related goods are
consistently met.
Develops policies and procedures to enhance and measure quality.
Continually
updates written policies and procedures to reflect state-of-the-art
techniques,
equipment and terminology.
Recommends compensation rates/increases for kitchen staff.
Establishes and maintains a regular cleaning and maintenance schedule
for all
kitchen areas and equipment.
Provides training and professional development opportunities for all
kitchen staff.
Ensures that representatives from the kitchen attend service lineups and
meetings.
Motivates and develops staff including cross training and promotion of
personnel.
Periodically visits dining area to interact and listen to members.
Undertakes special projects as assigned by the Food and Beverage
Director.
Staffing

Selection of the right people to staff course f/b will not only help to
generate a satisfied
and returning customer base, but also reduce employee turnover and the
long-term
costs associated with poor hiring practices. The saying that management
is only as good
as the people that surround them is true for any business; but once the
manager has gone
the lengths to get the best people, there is work in holding onto them.
There are many ways to seek out people you want. The NOW HIRING
sign is the
most obvious and probably the easiest way to take care of the need.
However, it has
its drawbacks; first, it advertises to the outside world that the golf course
has trouble
holding onto its help. Secondly, it is an invitation to anyone, often
including undesirable
prospects. It is saying that the ownership or management is at a loss for
trying to find
someone to fill a position.
Placing an ad in the local newspaper is the next logical move. Sunday ads
cost more but
will bring the strongest response. When placing ads, be specific about the
time, date
and place to apply. Also include a brief job description, hours desired and
any other
information you feel might attract the best choice. List your openings with
the student
employment offices at the local colleges or high schools nearby.
Establishing a solid
relationship with a school or church counselor who is familiar with your
standards might
just be the pipeline to satisfying any future needs, making the process
easy. Tell them
exactly what you want and why. Establishing a continuous source for good
people can
eliminate a lot of guessing and extra administrative work.
Another source are the people that currently work for you. Inform your
best people that
you are looking for someone just like them and do they know anyone
looking for work.
Perhaps an incentive can be attached to a successful reference.

A general rule-of-thumb in staffing a new restaurant or facility is that once

it has been
determined how many employees it will take to run the place, plan on
hiring an extra
25%. Although hiring the right people should be a very deliberate
approach, things can and
will go awry. Protection in the form of some extra employees is a standard
practice for
the industry.
Interviewing
The excuse that the job market is grim is getting old. In truth, most
courses do not
have a strict procedure in place that keeps a pipeline open for prospective
applicants.
Nobody knows what happens to applications when they get turned in, no
one is around to
greet or talk with a prospect; if the f/b department has even a semblance
of a full staff,
the idea of looking for more help is light years away.
Looking for the right people to come work for you should be an ongoing
process. There
has never been an organization that had too many sharp employees. A
certain amount
of time should be set aside every week for talking to prospective
applicants whether
you need people or not. And if you should by happenstance discover a
nugget, it
makes sense to make room for that individual, because in the hospitality
business,
usually populated with part-time and seasonal people, nothing is
permanent. The most
spectacular of f/b teams has at least one or two people sitting on the
bubble.
Applications should always be available to prospects, that is, they should
be somewhere
handy when asked for by someone interested. Ideally, management
should be the one
to hand out the application, but that is unrealistic, and good prospects do
come when
management is unavailable, so employees (receptionists, or anyone
working the front desk
or main office) should be trained how to handle distribution.

The manager should be contacted that someone has come in. When a
manager is present,
an initial screening process or two-minute interview should take place.
This helps
to eliminate applicants that do not have the proper experience,
appearance and /or qualifications that are desired, thus eliminating further
loss of time by scheduling a full
interview with the wrong person. On the other hand, if it is initially
determined in this
screening process that you have a potentially good prospect, the
interviewing process
must be accelerated. Do not allow the potentially good candidate to get
hired away by a
competitor or the next place on his/her list to apply.
It is a sound practice to never declare that you are hiring to an applicant,
even if it is so.
Best to say that the course is always looking and accepting applications.
Also, keep in
mind that all applicants are potential customers, and the style and grace
by which they
are treated will certainly determine the prospect of repeat business.
The following interview notes are not only appropriate for hiring hourly f/b
staff, but are
crucial when searching for a chef or f/b manager:
To prepare for an interview:
Take time to study the application and determine what information or
clarification
is needed. In addition to neatness and thoroughness, learning to read
between the
lines often yields additional information.
Keep a standard list of revealing questions (appropriate to the position)
handy so
that all is asked and nothing forgotten.
Arrange for a setting that has the minimum amount of distractions.
Remember that
a good interview also reflects on you and your organization. A prospective
applicant
is likely evaluating you, too.
Treat all applicants the same and show respect by paying attention and
asking some
questions. It is acceptable to talk of mutual interests, but that should not
overshadow the business purpose of the interview.

 Be prepared to provide information about your organization, including

compensation,
benefits, working atmosphere, your expectations, etc.
Explain the placement process. Do not leave them up in the air. Let them
know how
and when decisions will be made. This can help to avoid uncomfortable
confrontations later.
Questions should be short and open-ended, i.e., designed to get the
applicant to
say more than yes or no. Questions should include those that probe
the range of
expertise or experience with the position. Questions should include those
that
stimulate value judgments, including, e.g., work attendance, handling
difficult
situations, and so on.
Sample Questions: Work experience
1. Would you tell me about your last (or current) job?
2. How did you find your last job?
3. What was a typical workday?
4. What did you like least/most about your work?
5. What makes someone successful in your work?
6. How did you deal with a (specific) problem?
7. What would your supervisor say were your strong/weak points? Did you
agree?
Sample Questions: People relationships
8. How would you describe your supervisor?
9. What did you like/dislike about your co-workers?
10. What did you like/dislike about the customers?
11. How do you feel about teamwork vs. individual productivity?
Sample Questions: Aspirations
12. What are you looking for in this job to make it a satisfactory
experience?
13. What are your wage expectations and how far do you expect to go
with us?
14. What are your school interests and how are your grades?
15. What outside interests do you have away from work and school?
16. Although there is no right or wrong answer, in your opinion, what do
you think makes
you the best choice apart from other candidates for this position?
In the interview it is helpful to explain the structure of your interview
process, including

identifying yourself and whom you represent, what you are looking for,
that the interview
will be a two-way exchange, etc. Play down any unfavorable information
provided by the
applicant, at least by acknowledging your appreciation of the candidates
frankness. Do
not bring it up later. It is best discussed at the time it occurs in the
conversation. If at all
possible during the interview, compliment a persons accomplishments.
Interviewing f/b management (including chefs) entails getting into
technical issues,
mainly related to the numbers and cuisine. Any candidate worth his salt
should be able to
explain the principles (portion control, inventory, menu selection, pricing,
etc..) discussed
throughout this book.
On the subject of cuisine, asking someone a series of questions related to
explaining the
difference between hollandaise and barnaise (sauces) or how to make a
roux is taking a
trip into a minefield. A chef prospect should be asked to audition by
perhaps supplying or
re-creating a sample menu and preparing it for a small group of decisionmakers. If the
chef candidate is employed elsewhere, it certainly makes good sense to
pay a series of
unannounced to see how this person performs.
The same applies to an f/b manager candidate. For example, if in the
interview the
person claims to always be in the dining room (a popular statement is I
dont like to be in
the office. Im known for interacting with guests. Ha!) Wouldnt it be nice
to see it in
action, as well as an overview of how the place runs?
Evaluation of the candidate after the interview is a combination of
information gathered
throughout and gut feel. If you are uncertain, have another person do a
second interview
for another opinion, perhaps an expert in the hospitality field.
Nothing is wrong in being critical when evaluating. It is usually easier to
hire than it is to
fire. Remember that the person being interviewed is giving their best side
ever. It likely

will not get any better.

Confirm your evaluation by doing at least one or two reference checks.
Employers
are more desirable than personal references, but in todays business
climate, fear of
retaliation often means an ex-employer may only furnish you with dates of
hire and
termination and eligibility for re-hire. During the interview, get permission
for reference
checks, particularly of those still employed. Have they made their current
employer
aware that they are looking for other work?
In reading an application, consider the following:
Is it filled out neatly, completely and reflective of communication skills?
Does work history show gaps or short terms of employment?
Does length of residence reflect a history of moving often?
Are references and former employers accompanied with phone numbers
for ease
of contact?
Is the application signed and dated?
Do not write on the application. Any comments or notes should be made
on a separate
paper. Avoid negative remarks that may come back to work against you.
Keep comments
objective and clear should someone else later wish to review. If the
candidate appears to
be a fit, confirm the following:
Availability of hours, how many hours and start date
Position and wage
Things the employee needs to furnish at the beginning of employment,
including any
type of documentation, uniform or appearance requirements, etc.
Employee Motivation
Motivated staff members are likely to be better employees. For example, it
is
generally believed that a staff that is motivated has fewer accidents (a
real concern
in a kitchen environment) and less unexcused absenteeism than people
not motivated.
Lower turnover rates are also likely.
Unfortunately, it is difficult for a manager to motivate employees.
Motivation is a state

of mind, an internal drive within an individual to meet a need or want, an

avenue for
reaching a goal. Many f/b employees take on a full or part-time job with a
golf course
because of opportunity to play golf for free. If f/b management is
understaffed or plans
poorly, that person may never get the chance to play. Small wonder
people quit when
they are told one thing but get something else.
What a manager can do is to create an environment in which the facilitys
concerns are
addressed as each employee strives to attain self-directed and internally
developed
personal goals. There are many simple ways in which management style
can
simultaneously benefit both employees and the company.
Since a manager cannot order employees to have specific personal goals
or to change
them, it is best to determine exactly what their goals are (learn to play
golf, for example) and then let them meet those goals on the job. If
management is doing a basic part of
their job, that is constantly interacting with their people throughout the
workday, that
should make the task of understanding the wants and needs of their
people easier. That
might include scheduling an employee for a complimentary lesson.
Studies have shown that there is often a wide difference between what
managers believe
employees desire from their jobs and what the subordinates actually do
want. Three
factors that show up on employees wish list are (1) full appreciation for
the work that
they have done, (2) feeling of being in on things and (3) help with personal
problems.
Yet supervisors have often rated these three wants at the bottom of what
they thought
employees desired. Instead, supervisors think their employees most want
higher wages,
job security and promotion in the organization.
Rather than debate these findings, the point is that you, the manager,
may not know
exactly what your own people desire from their jobs. Perhaps your
leadership style

discounts an interest in that concern. Maybe there is a high turnover rate,

and there
is little opportunity to begin to understand the staff (a problem in itself and
a vicious
circle.)
All managers say they are aware that employees are the single most
important resource
towards the success of the operation, yet too often the employee is taken
for granted.
Addressing employee-related wants and needs might be one instance
where a back to the
basics approach rather than a search for high technology and new-age
solutions might be
in order. In other words, try using some empathy, common sense and
rational analysis in
your relationship with your employees.
Employee Orientation
An effective new employee orientation program will accomplish the
following
objectives:
Provide a genuine welcome; you never get a second chance to make a
good first
impression. Orientation is the time to roll out the red carpet. This simple
act is
often overlooked when the employee arrives for work. Treating the
orientation as
an anti-going away party might be going a long way, but it should be
thought of as
a celebration of sort. This is a time for a new hire to become the center of
attention
and get a chance to meet key people in a relaxed setting. All members of
the new
employees team should be coached to go out of their way to make the
new hire
feel welcome. It takes the edge off the first day nervousness. The nature of
a golf
course setting might be the perfect excuse to invite a few new employees
to play a
round together.
Develop positive perceptions; orientation is a time when a new
employee develops
perceptions about the organization, other employees, and you as a
manager. A well

planned orientation will communicate you are in control of the situation.

New hires
are highly aware of the environment. They notice how well things are
organized,
whether a business-like atmosphere exists and whether it will be an
enjoyable place
to work. Initial opinions are hard to change. Perceptions are particularly
critical to
part-time workers. These employees understand that if the job does not
measure up
they can move on to another job.
Supply as much key information as possible; at the minimum, a handout
with the
following data should be made available for the new hire:
Name, address and phone number of the organization
Names and titles of key people (organization chart, if applicable)
A brief history of the organization
Normal working hours
Pay periods and paydays
Vacation and time off policies
Medical and other benefits, if applicable
Type of new hire probation period
Performance review and evaluation process
Dress and appearance codes
Telephone procedures
Include a tour of the workplace. Take time to introduce the new hire as a
way of
breaking the ice. The tour should include the entire facility. Briefly visit
each major
area and explain how to gain access to the area when necessary. A person
that has
been hired to work the cart or snack bar out on the course should get a
complete
tour of the 18 holes.
The way the first day ends is just as important as the way it began. On the
way home
the employee will reflect on what took place. Closing on a positive note
will give the
employee a good feeling. The objective is to do everything possible to
make sure the
new hire looks forward to the next day of work. Before leaving the first
day, a manager

should spend some private time with the employee. Assuming that the
employee put
forth a good effort, communicate directly that you noticed what was
accomplished. Find
something positive to say about it.
Simple Training
Every employee you have taken the trouble to hire should now be
considered an
investment in the business. An employee is at least as valuable as a
repeat customer
or a piece of equipment. An employee requires attention and should be
maintained and
looked after like any other part of the operation. Too often it is the one
thing taken most
for granted. The truly good managers value their people for what they can
do for the
continued success of the business.
The first phase of hiring someone should be an orientation; usually the
first day of work, it
should be a meeting designed to welcome, including a review of the
employee handbook
or general rules and regulations, a tour of the facility and a beginning
assignment that
should include the pairing up with a designated member of the staff that
knows exactly
what management expectations are. As the new hire has probably had
some time to think
about this new job, this is the opportunity for that person to ask questions
about anything
that may have not been covered in the interview or in the orientation
itself.
An orientation for someone new to a system is an adjustment or
adaptation to a new
environment, situation or set of ideas. Therefore, it is important that it be
handled by
management or other proven person, so that any questions can be
answered competently
and that all concerns of the business are communicated in the spirit the
company has set
down.
A new hire/trainees first days on the job are the most critical and
influential with

respect to formation of desirable habits. How this person is handled early

on will lay the
groundwork for ease and quickness in development. Even during the first
few hours of
work the trainee is most vulnerable to guidance and the need to feel a
part of the team.
Assigning an already competently trained person one-on-one to the new
hire nurtures a
successful training environment. Putting someone into a sink-or-swim
situation without
aid will surely lead to future error and frustration for the trainee and all
others involved.
This would most likely lead to some sort of customer dissatisfaction.
A simple and recommended sequencing for training anyone to do anything
follows:
1. Explain the task. The trainer takes the time to verbally review what will
happen to
the trainee for a specific lesson.
2. Trainer does the task. As the trainee watches, the trainer follows the
same steps
that were just talked about, confirming the previous step.
3. Trainee explains the task. After listening to and watching the process,
the trainee is
allowed to explain to the trainer what the task is about.
4. Trainee does the task. Under the eye of the trainer, the trainee is
allowed to
perform the work based on the previous three steps.
5. Trainer critiques the trainees work. Repeat if necessary.
Performance Appraisals
One particular management tool that is often misused or avoided is
employee
evaluations. A performance appraisal provides a periodic opportunity for
communication between the person who assigns the work, and the person
who performs
it, to discuss what they expect from the other and how well those
expectations are being
met.
The appraisal should not be an adversarial meeting, nor wasted on small
talk. It is an
essential communication link between two people with a common
purpose. A good

performance appraisal leaves both parties feeling they have gained

something. An
appraisal is often mischaracterized by the notion that a wage increase
should be involved.
Not necessarily. If a new hire is informed in the orientation process that
reviews will
happen from time to time and do not mean an automatic salary review,
then that hurdle
will be eliminated.
Too often performance appraisals are left until the last minute and then
done in a hurried
manner. When this occurs, the results are usually poor. The supervisor
feels guilty, and
the employee unimportant and let down. An appraisal also has an air of
dread about it,
though it shouldnt be the caseif a manager has done a good job of
communicating daytoday with an employee, the actual appraisal should be nothing more than a
formality;
there will be no surprises.
If your employees do not understand how their work is evaluated, it is
managements
responsibility to familiarize them with the process in advance, especially
new hires.
Performance appraisal discussions are normally initiated by the supervisor,
but are also
appropriate when employees request a meeting to determine how well you
think they
are doing.
Appraisal discussions should be scheduled on a regular basis by either
company policy or
the supervisor. Less formal discussions may be conducted whenever the
nature of the
work makes it meaningful to do so. Appraisal activities handled at any
other moment may
be recalled later during a more formal, scheduled review for
reinforcement.
Preparation by an employee for the appraisal discussion is as important as
that of the
manager. Giving advance notice to the employee creates a climate of
participation.
The discussion should be a structured and planned interpersonal meeting,
not a casual

conversation. A specific time, agreeable to both parties should be

reserved. Topics for
discussion should be known in advance so the participants can prepare
accordingly. The
manager can help employees prepare by providing a copy of the format
along with a list of
thought stimulators:
To what extent do I fulfill my job requirements?
What do I like best about my job? Least?
What did I accomplish during this appraisal period? Where did I fall
short?
How can my supervisor help me do a better job?
Where can I go from here, and how do I prepare for that responsibility?
It takes solid preparation on the managers part for a thorough appraisal.
Identify
and develop items to be covered. Since employee performance in the
current job
is the central issue, gather data concerning those job requirements; review
the job
requirements yourself to make sure you are fully conversant with them.
Evaluate job performance versus job expectations for the period being
appraised, and
rate it from unacceptable to outstanding (or whatever the range
established). Variances
that need to be discussed should be backed up with specific examples.
Consider career
opportunities or limitations for this person and be prepared to discuss
them.
Factors that mislead in an appraisal must be avoided. Be on guard for
anything that might
distort reality. Things that one might react to yet have nothing to do with
performance
include the following:
Over-emphasis on favorable or unfavorable performance of a fractional
nature,
which could lead to an unbalanced evaluation of the overall contribution.
Relying on impressions rather than facts.
Holding the employee responsible for the impact of factors beyond
his/her control
Failure to provide each employee with an opportunity for advance
preparation.
Do not allow issues relating to race, religion, age, sex, etc. to bias.

Managers have the responsibility to initiate appraisal discussions.

Although individual
personalities will influence the flow, begin the talk on a positive and
friendly note
by highlighting something positive or asking the employee to review his or
her
accomplishments for the appraisal period. This allows the employee to
select where to
begin and can lead to a candid assessment of actual performance. While
the employee is
talking, the manager should be an interested listener.
If variances between expectations and results are evident, it is important
both parties try
to determine what they are and why they occurred. This helps the
discussion become a
joint problem solving session, which can lead to the implementation of
effective solutions.
The employee should be encouraged to identify as many reasons for
variances as possible.
None should be rejected even if they seem to be excuses. Both sides
should agree on the causes. This sharing allows for an exchange of
viewpoints.
On the topic of unsatisfactory performance, employees who work in a nonthreatening
environment are more apt to discuss their shortcomings in the appraisal
setting. When
this occurs, the supervisor can be supportive by saying, That is very
perceptive. What
can we do to correct this situation?
However, if the employee has been unsatisfactory in an aspect of his or
her job, and does
not bring up areas of weak performance, the supervisor must do so. It
helps to be able
to describe the impact of the poor performance on the company. Some
employees may
not realize they are falling short of expectations. Perhaps no one has ever
discussed the
problem with him or her.
If the employee is unaware that expectations are not being met, they must
be clarified,
and a commitment made that they will be met. Agreement on a corrective
action plan is
made, regardless of reason.

The most successful and satisfying evaluation is when the employee is

comfortable talking
freely. Reluctance to talk can be attributed to one of the following:
The employee does not understand the purpose of the appraisal, and is
afraid to
express an opinion.
The employee is not given an opportunity to express an opinion.
The employee was not given time to prepare for the discussion.
The employee is made to feel that his or her thoughts are discounted or
glossed over
quickly, resulting in a retreat.
The employee is disinterested, and the process is meaningless.
As it is suggested that a supervisor can learn more by listening than
talking, using proven
communication skills can enhance the dialogue. Listening permits a
climate where
disagreement is not only acceptable, but also invited. Employees
appreciate a leader
who shares information, asks for opinions and listens to ideas. A supervisor
who accepts
employees input recognizes their value, capitalizes on their knowledge
and builds
confidence in the group.
There are three types of questions that can be used to help the supervisor
and employee
better understand each others point of view.
1. OPEN QUESTIONS: Those, which cannot be answered with a yes or no.
These
questions require an opinion or expression of feelings. For example: What
is your
opinion of. . . .? How do you feel about. . . . ? What do you think
caused. . . . ?
Open questions can show that management is interested in other points of
view and
values the other persons ideas and feelings.
2. REFLECTIVE QUESTIONS: Those, which repeat a statement, the other
person has
made in the form of a question. Employee: We could serve a better
product if
we changed the sequence of preparation. Manager: You really think we
can

improve on that product? The reflective question sidesteps an argument

without accepting or rejecting an idea. The other person is encouraged to
clarify or expand
upon what has been said.
3. DIRECTIVE QUESTIONS: These are used solicit information about a
specific point.
They are usually used once the other person has finished talking on the
subject.
Manager: If you are sure we can make that product better, what steps
would you
recommend? This is a friendly challenge for the other person to explore
ideas,
defend statements and contribute suggestions.
Closing the appraisal discussion requires some organization, too. To
prevent any differing
perceptions as to what has taken place and what is expected in the future,
make sure
time is allowed for a summarization of what has been agreed upon.
Express appreciation
for the employees participation and commitment to the future plans. A
written record of
key issues should be included in the employees file and signed by the
employee.
Discipline and Terminations
All courses hopefully have policies and procedures for dealing with
employees that
are struggling with performance. The problem is that the managers dont
use the
guidelines to their advantage. Food and beverage doesnt necessarily
have the lions
share of no-goodniks, but if the chef or f/b manager forgets or chooses to
ignore bad
behavior, the stage is set for worse things to happen. Consider the next
paragraphs a
reminder of how to deal with personnel problems.
At some time during most employees tenure, some sort of offense is
committed in
contradiction to company policy, be it minor or major. Effective
management dictates the
issue should be addressed immediately, not saved for another time
when not only has
the incident diminished in severity, so has clarity as to exactly what
happened.

The stages of disciplinary action must be a written code to make sure fair
treatment
of the workers exists and to protect them from impulsive or unduly harsh
punishment for wrongdoing. Consistency is the key. In the world of
reprimands, the manager must
avoid sarcasm, loss of temper, humiliating remarks, profanity, threats,
bluffs, favoritism,
inconsistent enforcement or delaying tactics.
Following are four typical stages of disciplinary action. The severity of the
offense would
most likely influence at what stage the disciplinary action would start:
1. First offense: oral warning. Workers must understand what has gone
wrong and be
told of the stages of disciplinary action. Management should make a note
of the
time, place and circumstances of the warning.
2. Second offense: informing workers in writing that the error is a violation
of rules
or standards and that another infraction will result in loss of time/pay or
job. A copy
of the warning is given to the worker, a copy is put in the employees file,
and if a
higher authority warrants, a copy forwarded.
3. Third offense: disciplinary layoff. Workers are suspended without pay for
a period of time consistent with the seriousness of the offense. Written
documentation is included.
4. Fourth offense: termination. Whenever termination is evident, the
manager should
check off on the following points:
What is the past record of the worker?
Are all the facts in that apply to the situation?
Has the worker been given a reasonable chance to improve?
Has fair warning been given?
Are actions consistent in similar cases?
Should anyone else be consulted on the termination?
Firing someone may be the most unpleasant task for a manager. Of the
thousands of
books about management techniques and style, the topic of firing is rarely
discussed.
Those rare books that do touch on the topic offer little to make the task
easier.
The act of firing for some managers is so traumatic they lose sleep; some
have to take

time off from work after the deed; some need a drink to pull it off. It is
doubtful any of
these actions or reactions will soften the blow for either party.
If you decide to fire for poor performance, you should be convinced or
fortified by the
correctness of your action. Do not keep ineffective workers. It demoralizes
the rest of
the staff and lowers the productivity levels you seek. Just because you feel
sorry for
someone that cannot meet expectations is not a good reason to keep
them on the job.
You can try to help your less effective workers by giving them extra
training, by trying to
look for ways they can improve and by finding out if they can fit anywhere
else better;
but after you have attempted everything, there is only dismissal as a
choice. Take into
account how you yourself would want to be treated in a firing. Choose a
place with
privacy and where interruptions are limited. If the firing is potentially
volatile or involves
delicate handling, consider having a witness present in case of future
repercussions.
Some workers will be angry and vent their frustrations towards you. There
is no need for
you to answer backlisten and acknowledge that this is very difficult for
all involved but
this is what the situation has come to. The worker must be told very
clearly the reason
they are being fired so that it can be a learning experience. If you cannot
give a good
reference, this person should know not to use your name and be warned
that, if called,
you will state the facts (if this is allowed by company policy).
Not all dismissals are traumatic. Some workers are even relieved,
especially if you have
put off doing the firing and the situation has deteriorated. The worker
usually knows it is
coming and agrees that the behavior warrants this move.
Managing Upset Employees
Whether right or wrong, it is important not to make your employee look
foolish or

incompetent in front of a customer. It is also advisable not to make the

incident a
three-party affair; the employee should stay away from immediate area. If
it appears
the employee is in fact wrong, it adds little to the conversation to degrade
the person in
front of the customer. The focus should be on righting the wrong, with an
assurance to
the customer that you will follow up with the employee and take what you
consider to be
appropriate action.
At the right time, perhaps after the customer has left, the employee
should be
confronted. He/she may be shaken, angry or even on the verge of tears.
Do not try to
sort out the problem in front of peers or other customers. Review the
incident in private
by getting the employees version before making any quick decisions. It is
not uncommon
for an employee to admit that he/she had not done their job correctly. In
these cases a
personal apology from the employee to the customer (on the pretext the
employee agrees
this is appropriate) usually works wonders; in cases where the two sides of
the story do
not agree, the manager must rely on his/her wisdom and experience to
consider what
action to take.