2. Running your restaurant Pertemuan 25-26 Matakuliah: G0424 – Hotel and Restaurant Management Tahun: 2008

3. Bina Nusantara University 3 Topics Resources of revenue Resource of cost Conducting inventory

4. Bina Nusantara University 4 Learning Outcomes Students are able to make the plan on cost and budget Students are able to ‘do the numbers’

5. Bina Nusantara University 5 Source of revenue and cost Revenue –Food and beverage –Merchadise –Events Cost –Food and beverage production –Other controllable expenses (payroll, employee benefits, operation cost, marketing, maintenance, administrative, energy and utility, etc.)

6. Bina Nusantara University 6 Finding resources of revenue Do not depend on the walk-in and sit down customers. Some of the ways of getting extra income –Social events such as wedding or parties –Business catering, such as corporate dining events –Music and entertainment, ie. Live music, guest star, etc. –Institutional food service, for hospital, school

7. Bina Nusantara University 7 Finding additional resources of revenue Discovering the keys to successful delivery or take out –Good food –Accuracy –Freshness –Speed –Convenience Adding merchandising to your mix. –Marketing your business –Finding merchandising items –Matching retail items to your image

8. Bina Nusantara University 8 Cost Control Cost of goods sold have been calculated as a percentage of sales and will be monitored on a daily basis in order to keep Cost of Food within the range of 31 - 33%, Bar Costs within 28 - 31%, and Cost of Beverages (Non Alcohol) below 9%. Understanding the formula BEGINNING INVENTORY (FOR SPECIFIC PERIOD) + PURCHASES = TOTAL AVAILABLE INVENTORY – CLOSING INVENTORY = USAGE (COST OF GOODS SOLD)

9. Bina Nusantara University 9 Sample of costs 35.00% - Cost of goods sold. 17.00% - Employee payroll. 00.25% - Credit card charges. 00.33% - Marketing fees. 2.00% - Management fees. 2.00% - Advertising. 2.00% - Management bonus. 3.03% - Benefits. 1.50% - Paper and cleaning. 63.11% - Total variable costs.

10. Bina Nusantara University 10 Kinds of costs Food cost (%) = food expense x 100% food sales Beverage cost (%) = beverage expense x 100% beverage sales Labour cost (%) = cost of labour x 100% sales

11. Bina Nusantara University 11 Seat turnover An index of efficiency for the entire operation It depends of type of F&B operation The fast-turnover style of restaurant features rapid- turnover menu items.

12. Bina Nusantara University 12 Conducting inventory Conducting the relationship between inventory and food costs –Should be done every week Why conduct inventory? –To measure the amount of product used for a specific period of time –To keep the management in touch with usage so they can make accurate orders –To keep management up-to-date on pricing

13. Bina Nusantara University 13 Inventory Turnover & Account Payable Accounts receivable turnover is calculated to be 0 days, as payment is rendered with service. Inventory is turned on a 7 day cycle as inventory is used daily within all categories, and accounts payable are projected to be 30 days.

14. Bina Nusantara University 14 Managing Your Restaurant Business How to develop effective systems for running your business on a daily basis Developing a menu that makes money –Deciding what food and beverages to serve –How to find suppliers and save money when purchasing food –Setting your menu prices Four critical environmental factors can help a restaurant succeed (or contribute to its failure) –Lighting –Music –Temperature –Cleanliness How to handle repairs and maintenance

15. Bina Nusantara University 15 Managing Your Restaurant Business Working with employees –Finding staff before your restaurant opens –Questions to ask job applicants in an interview –How to check references to avoid hiring disasters –Effective ways to train staff –How to use bonuses to give your staff a sense of ownership (so they gladly assist in making your restaurant business more profitable) Unconventional ways to market your restaurant and attract customers

16. Bina Nusantara University 16 Managing Your Restaurant Business Financial management for restaurant owners: –How to budget –The most effective way to track sales –How to calculate your costs of sales and inventory –Ways to reduce costs –How to build wealth Developing good customer relations through relationship marketing ie. Updating customer’s data – birthday, anniversary, etc.