Restaurant Financial Basics
Raymond S. Schmidgall, David K. Hayes, Jack D. Ninemeier
Format: PDF / Kindle (mobi) / ePub
A complete, practical guide to managing restaurant business finances
One of the keys to a successful restaurant business is strong financial management. This book equips readers with the tools needed to manage the finances of foodservice establishments effectively. Written by expert authors with extensive experience in the field, this accessible resource is filled with valuable information that can be applied to day-to-day operations. It offers concise, down-to-earth coverage of basic accounting topics-including pricing, budgeting, cost control, and cash flow-as well as more specialized information, such as how to establish menu prices.
mark-up is established: The base selling price of our menu item can now be calculated: These procedures are identical to those illustrated in the pricing model suggested above for a restaurant selling only food (no alcoholic beverages). The price of the drink ($2.75) would now be adjusted to fit the needs of the restaurant; for example, if base drink selling prices for other popular house drinks average about $2.50, and if they were of approximately equal popularity, an actual
products are purchased by a staff purchasing agent and come under the control of production personnel [chef and bartender] after issuing, the control process is tightened when these intermediate tasks [receiving, storing, and issuing] are the responsibility of the controller.) Internal auditor. Very large restaurants and foodservice chains may employ internal auditors to evaluate the operating effectiveness of the accounting information system. As companies grow into multiunit organizations,
provided. There are, however, some aspects of financial management that are unique to restaurants and other types of food/beverage operations. Most of these relate to developing, collecting, and using financial information to help control the costs of food and/or beverage products. Examples of these special financial management concerns include: . menu engineering purchasing (source document flow) . receiving . inventory (food/beverage) control and valuation . issuing .
accounts should receive bank statements (including canceled checks, if applicable) directly from the bank. Those who sign checks or have other accounting duties relating to cash transactions should not reconcile the bank accounts. Reconciliation should include the examination of signatures and endorsements and the verification of the accuracy of cash receipt and disbursement records. The manager (small restaurant) or accountant (larger restaurant) should be responsible for cash. If the
Faris, who could use a manual guest check system or a computerized POS system. If he uses manually completed guest checks he must ensure that product sales equal guest check totals. If they do, all issued products will result in correct charges to the guest. If guest checks are used, the numbers on the checks are of no value if checks are not tightly controlled. Each check must be accounted for, and employees must be held responsible for each check they are issued so a dishonest employee does