Restaurant Budget Report

The management of the restaurant is prepared the budget for the year of 2019/2020. We are
prepared the budget based on the revenue and expenses in the year of 2019. There are some
changes which are made to achieve greater success in our restaurant.

The following changes are impact to the Kitchen staff of the restaurant and head chef. The
restaurant manager should responsible to achieve following results through the restaurant
staff. Because biggest contribution given by the food and beverage sale of the restaurant.
Therefore, restaurant staff and head chef should work hard and perform their best level to
achieve these performances.

 Food sales are expected to be increased by 3.5% and beverage sales are expected to be
increased by 1.5%
 Food costs are expected to be increased by 3% and there will be increase of 2% in
beverage cost.

The following changes are related with the marketing activities. Therefore, marketing
manager have responsibility to perform their activities under the following changes.

 There will be at least 3.5% of the sales turnover for entertainment, discounts and
giveaways. This should be split 50/50 between the two relevant cost areas of
music/entertainment & Advertising/promotion.
 Decided to scrap all the current promotional activities and implement the consultant’s
recommendations.
 The advertising budget has been cut by 41% since we have already marked our
presence and it’s time to consolidate our share in the market.

The following changes are impact to the expenses of the restaurant. Therefore, financial
manager should have responsibility to allocate money for following area and the relevant
officer should maintain document regarding the changes of the payments.

 There will be increase in power and phone costs of 7.5% instead of 6.25% as
estimated by the client.
 $5000 should be put aside for contingency cost instead of $2500.
 We have also estimated that employee benefits will increase by 2.25%.
 The insurance premiums are not expected to change.