![]() ![]() Proper marketing of the foodservice operation is also vital. The selling of food and beverage is obviously the main source of revenue. Even in these kinds of operations, managers typically must still work within their revenue budgets. In these situations, the revenue comes from some overall organization budget and participation may be measured instead of revenue. Even in these kinds of operations, managers typically must still work within their revenue budgets.įor example, patients in the hospital don’t pay for each of their meals individually, prisoners don’t pay for their meals, and a few businesses provide an employee cafeteria where the food and beverage are free to the employee. For example, patients in the hospital don’t pay for each of their meals individually, prisoners don’t pay for their meals, and a few businesses provide an employee cafeteria where the food and beverage are free to the employee. The basic formula is as follows: Revenue – Expense = ProfitĪll foodservice operations have expenses, but not all have “sales.” Some non-profit onsite foodservice operations provide their products to guests as part of a larger operation. Expenses are the costs associated with doing business and must be paid out to suppliers, the landlord, local government, etc. In the most basic terms, revenue is money or dollars brought in to the operation, also known as sales. Simply put, driving revenue, while controlling expenses. Managers must also create and maintain profitable food service operations. It is not enough to merely provide outstanding products and services in the foodservice industry. Appreciate a realistic expected profit figure (percentage) for the restaurant industry.Calculate performance to budget figures.Compare actual operating revenue and expenses with budgeted operating results.Calculate cost percentages (express both expenses and profit as a percentage of revenue.Describe typical expense categories for foodservice operations.Describe various revenue sources for foodservice operations.Apply the basic formula used to determine profit and ideal expense.Define key terms and recognize basic financial principles related to managing revenue and expense.Chapter 2 – Introduction: Revenue and Expense
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