Preface vii

Acknowledgments xiii

Chapter 1: Managing Revenue and Expense 1

Professional Foodservice Manager 2

Profit: The Reward for Service 2

Getting Started 5

Understanding the Income (Profit and Loss) Statement 14

Understanding the Budget 18

Chapter 2: Creating Sales Forecasts 29

Importance of Forecasting Sales 30

Sales Histories 32

Maintaining Sales Histories 38

Sales Variances 39

Predicting Future Sales 41

Chapter 3: Purchasing and Receiving 57

Forecasting Food Sales 58

Forecasting Beverage Sales 60

Importance of Standardized Recipes 64

Purchasing Food 70

Purchasing Beverages 78

Purchase Orders 83

Receiving Food and Beverage Products 86

Chapter 4: Managing Inventory and Production 106

Product Storage 107

Storing Food Products 107

Storing Beverage Products 111

Inventory Control 114

Product Issuing and

Restocking 122

Managing Food Production 132

Managing Beverage Production 141

Chapter 5: Monitoring Food and Beverage Product Costs 153

Cost of Sales 154

Computing Cost of Food Sold 154

Computing Cost of Beverage Sold 157

Computing Costs with Transfers 158

Utilizing the Cost of Sales Formula 160

Reducing the Cost of Sales Percentage 175

Chapter 6: Managing Food and Beverage Pricing 197

Menu Formats 198

Menu Specials 202

Factors Affecting Menu Pricing 203

Assigning Menu Prices 211

Special Pricing Situations 215

Chapter 7: Managing the Cost of Labor 234

Labor Expense in the Hospitality Industry 235

Evaluating Labor Productivity 238

Maintaining a Productive Workforce 239

Measuring Current Labor Productivity 255

Managing Payroll Costs 267

Reducing Labor-Related Costs 277

Chapter 8: Controlling Other Expenses 289

Other Expenses 290

Controllable and Non-controllable Other Expenses 290

Fixed, Variable, and Mixed Other Expenses 293

Monitoring Other Expenses 296

Managing Other Expenses 299

Chapter 9: Analyzing Results Using the Income Statement 315

Introduction to Financial Analysis 316

Uniform System of Accounts 317

Income Statement (USAR format) 318

Analysis of Sales/Volume 323

Analysis of Food Expense 326

Analysis of Beverage Expense 329

Analysis of Labor Expense 331

Analysis of Other Expenses 333

Analysis of Profits 334

Chapter 10: Planning for Profit 349

Financial Analysis and Profit Planning 350

Menu Analysis 350

Cost/Volume/Profit Analysis 364

The Budget 371

Developing the Budget 374

Monitoring the Budget 379

Chapter 11: Maintaining and Improving the Revenue Control System 399

Revenue Security 400

External Threats to Revenue Security 401

Internal Threats to Revenue Security 406

Developing the Revenue Security System 410

The Complete Revenue Security System 417

Glossary 426

Index 434

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