Towards Financial Performance Improvement of Healthy and Yummy 5

Application of double entry book keeping system of debits and credits and Analysis of sales and purchase transactions to compile trial balance 3 3. In this project report a new restaurant Healthy and Yummy is being opened in London, UK which is offering health smoothies with blended juices and smoothies.

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Investigation of the principles of managing and monitoring financial performance...............1
2. Application of double entry book keeping system of debits and credits and Analysis of sales
and purchase transactions to compile trial balance......................................................................3
3. Formulation of basic trial balance by applying balance off rule.............................................4
TASK 2............................................................................................................................................5
1. Reviewing the different stages of the HR life cycle applied to Healthy and Yummy.............5
2. Development of performance management plan for Healthy and Yummy.............................7
TASK 3............................................................................................................................................8
1. Covered in PPT........................................................................................................................8
2. Covered in PPT........................................................................................................................8
TASK 4............................................................................................................................................8
1. Interrelation between different functions and roles within hospitality sector..........................8
2. Different methods of communication, coordination and monitoring applied within specific
department of the organisation...................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality industry is concerned with the process of rendering services to the customers.
For all the organisations that are operating business under this it is very important to analyse that
all the services that are provided to the clients are fulfilling their requirements or not. There are
various types of legislations that are imposed by government and it is essential for all the
companies to follow them in order to operate the business appropriately and successfully
(Anderson and et.al., 2017). In this project report a new restaurant Healthy and Yummy is being
opened in London, UK which is offering health salads with blended juices and smoothies. This
report aims at various aspects of the business such as financial, human resource, legislations and
laws.
TASK 1
1. Investigation of the principles of managing and monitoring financial performance
A new restaurant named Healthy and Yummy is being opened in London which is
turning in to thriving enterprise on Bishops gate in London. Healthy salads with blended juices
and smoothies are offered by it to the customers. There are various types of principles that can be
used by the restaurant in order to measure its performance. All of them are as follows:
 Organisation of finance: It is very important for Healthy and Yummy to organise its
funds appropriately so that business may have sufficient funds to conduct operational
activities. This principle may help the organisation to manage the finance in proper
manner (Bowie and et.al., 2016).
 Spend less then the earnings: For all the business entities it is very important to spend
less then the total incomes so that profits can be acquired. This principle also helps to
analyse that the restaurant is generating profits or bearing losses.
 Identify risks: It is the last principle which should be implemented by Healthy and
Yummy in order to manage financial performance because it can help to assess the
future risk that may take place and affect the financial status of the company.
All the above described principles can help Healthy and Yummy to manage and monitor
its financial principles as they guide to spend and organise fund effectively and estimate future
risks.
A. Over one calender year incomes and expenditures of the business are as follows:
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Incomings Outgoings
Wages Weekly food shopping
Gifts Clothes
Benefits Gifts
Allowances Household utility bills
drinks
Lunch purchases
B. Explanation of some specific terms:
Types of cost: There are various types of costs that may take place while running a
business. It is a combination of all the expenses that are faced by a business to deliver products
or services to the customers (Types of cost, 2018). All the costs that are related to Healthy and
Yummy are as follows:
 Fixed cost: All the expenses that does not changes with the quantity of food items that
are offered by Healthy and Yummy are considered as the part of fixed cost. Rent,
depreciation, insurance are the examples of it.
 Variable cost: Such type of expenses that varies with the items produced by the
organisation are known as variable costs. It includes food, salaries, marketing
expenditures etc.
 Semi variable cost: All the expenses that are partially fixed and partially variable are
considered as the part of semi variable costs. Facility rent, staffing expenses are the
example of it.
Sales: It is the total amount which is received by the restaurant by delivering food and
beverage items to the customers. Exchanging of one items with money is also known as sales.
Main purpose of this is to generate monetary resources. In Healthy and Yummy the sale is done
by selling healthy salad with blended smoothies and juices.
Purchase: It can be defined as the process of acquiring something by offering money to
other party. It is the activity of buying goods for the purpose of conducting business activities. In
Healthy and Yummy managers and employees buy different items for the purpose of serving
food and beverages to the clients (Charterina and Barrutia, 2014).
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2. Application of double entry book keeping system of debits and credits and Analysis of sales
and purchase transactions to compile trial balance
Double entry book keeping system: According to this system all the transactions that
are made by a business should be recorded in the books at least two times. It ensures that the
amount which is added in debit side should match credit side. For Healthy and Yummy
restaurant it is very important to use this system in its accounting procedures so that the accurate
profits and expenses can be determined (Chung and Chung, 2018). A trial balance by following
this system is being formulated which is as follows:
Particulars Debit Credit
Cash in hand (Overdraft) 10700
Petty cash expenses 750
Cash sales 3350
Credit card sales 14795
Free issues 575
New kitchen equipments 6540
Food purchase 7900
Beverage purchases 12970
Purchase return 200
Discount received 2300
Credit notes 190
Rent 2850
Utilities 475
Functions and events (Income) 5967
Wages 4590
Debtors 700
Till shortage 152
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Total 37502 37502
Cash in hand is considered as an overdraft and functions and events are treated as
incomes in order to match the figures that are shown in trial balance.
A trial balance which is based upon the first table is shown below in which double entry
bookkeeping system is being used to reflect all the incomings and outgoings for a particular
month. All the amounts that are shown in the table are based on imagination (Ervin, 2016).
Particulars Debit Credit Transaction amount
Wages 16489 16489
Gifts 24000 24000
Benefits 25000 25000
Allowances 15900 15900
Weekly food shopping 26415 26415
Clothes 17809 17809
Gifts 15000 15000
Household utility bills 3678 3678
Drinks 10032 10032
Lunch purchases 8455 8455
Total 81389 81389 162778
3. Formulation of basic trial balance by applying balance off rule
Balance off rule: At the end of an accounting year all the accounts of a business entity
are being closed and those which are not closed their balance is being carried forward to next
year. This process is called balancing off. Main purpose of it is analyse that the information
which is added in the journals and ledgers are appropriate or not. For Healthy and Yummy it is
very important to to balance off all the accounts at the end of the accounting year so that actual
performance of the organisation is being analysed (Foster and Carver, 2018).
Particulars Debit Credit
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Bank loan 12000
Cash in hand 11700
Capital 13000
Rates 1880
Trade creditors 11200
Purchases 12400
Sales 14600
Sundry creditors 1620
Debtors 12000
bank loan interest 1400
Other expenses 11020
Vehicles 2020
Total 52420 52420
The above table shows that the trial balance of the organisation is being matched at the
end of the year which means all the information which was recorded in journals and ledgers are
appropriate and relevant.
Steps used in drawing up trial balance:
Trial balance is a statement which is formulated right after closing all the ledgers. Main
purpose of it is to determine that all the figures that are recorded previously are appropriate or
not. Steps that are required to be followed by Healthy and Yummy to form trial balance are as
follows:
 First of all, all the ledgers that are prepared closed and which are not closed their balance
is transferred to next year.
 After this three column statement is generated in particulars, debit and credit heading are
stated (Gnanapala, 2017).
 Now the balances of ledgers according to their nature is recorded in the debit or credit
column of trial balance.
 At the end total of both the sides are matched.
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TASK 2
1. Reviewing the different stages of the HR life cycle applied to Healthy and Yummy
Infographic:
HR life cycle is very important for strategic talent management and overcoming issues of
staff retention because it can help to analyse the steps that are required to be taken by the HR of
the organisation. In this procedure exit questions are asked from the workers who are going to
leave. It is beneficial while retaining skilled employees because it looks at the performance of
staff and then appraise them accordingly.
Recommendation: There are various types of documents that are generated by
organisations like Healthy and Yummy in order to evaluate different stages of HR life cycle
(Higgins-Desbiolles, Moskwa and Wijesinghe, 2017). These are performance report, daily work
sheet etc. Both of them may guide the HR manager to appropriately manage and measure the
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performance of employees and then make plans to retain them. All of them can be improved by
analysing them on regular basis so that effective talent can be managed appropriately.
All the organisations such as Tasty and Yummy have to face various issues to acquire
talent. All of them are as follows:
 The major issue is finding the right candidate. As Tasty and Yummy is looking for
marketing executive and the issue which will be faced by the organisation is that the
finding the skilled candidate who can handle all the issues and work in marketing
department.
 Managing the hiring process is the second main issue that takes place in talent acquisition
process. The managers have to manage the hiring procedures of selecting marketing
executive. It is very difficult as various candidates come for the interview and then
interviewed by the managers so they have various responsibilities that create difficulties
in the management of recruitment and selection process.
2. Development of performance management plan for Healthy and Yummy
A performance management plan for the job profile of marketing executive of Healthy
and Yummy is as follows. It is based upon the script of giving an employee a pay rise which is
linked with a new bonus scheme:
The process which should not be undertaken:
Manager came and said.
Manager: congratulations. Your pay has been raised under new bonus scheme launched
by the company recently.
Employee: Thank you sir. I am really happy to hear this information..
Manager(while cheerfully patting employee's back): More good work is expected
from you. Work hard.
Employee: Sure sir. You will not be disappointed.
The process which should be under taken:
Manager: Good Morning.
Employee: Good Morning sir.
Manager: I am here to discuss a rise in the pay scale which is linked with the new bonus
scheme of the organisation.
Employee: It is a good idea sir.
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Manager: We have analysed your performance through out specific period and we
noticed that you are working very well. So we have decided to give you a rise in your salary.
Employee: I am very happy that you liked my work.
Manager: In future you will get bonus for each extra hour you work for the organisation.
Employee: I will try my bets to fulfil all your aspiration (Lub and et.al., 2016).
Manager: Congratulations.
Employee: Thank you, sir.
TASK 3
1. Covered in PPT
2. Covered in PPT
TASK 4
1. Interrelation between different functions and roles within hospitality sector
Organisational structure of Healthy and Yummy:
Organisational structure of hotel:
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Organisational structure of Hospital:
Organisational structure of Theme Park:
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There are various types of businesses are operated in hospitality sector. These are
restaurants, hotels, hospitals and theme parks. Their organisational structure interrelates to each
other. Their organisational roles interrelates with each other as in restaurant top management
takes the decisions, in hospitals owner is responsible for decision making, in theme part general
manager controls activities of other departments and hotels general manager is responsible to
provide guidance to all the other managers and staff (Singh, 2015).
2. Different methods of communication, coordination and monitoring applied within specific
department of the organisation
Different methods of communication:
Email: It is a formal method of communication which is used by Healthy and Yummy to
communicate information with different members of the organisation. These are mainly used to
inform employees regarding any decision which is taken by higher authority in a formal manner.
Text Message: It is a formal as well as informal way of communication which is used by
Healthy and Yummy to communicate with its employees.
Group meeting: Such type of communication method is mainly used to make
announcements by higher authority of the organisation. In Healthy and Yummy it is used by top
management to provide information of such judgements that are made by them for the betterment
of the restaurant.
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Different methods of coordination, communication and monitoring that can help to
achieve organisational objectives and strengthen the value:
There are various types of methods of communication that are used by human resource
department of Healthy and Yummy. These are text message, telephonic call, group meeting, one
to one meeting, infographic, e mail and graphs. All of them are used to communicate
performance of the organisation and to analyse that all the operations are operated appropriately
or not. These are also beneficial to achieve goals and objectives by analysing that entity is
performing well or not. If it is not good then appropriate decision can be made to to make it
better. These are also used to strengthen the value of the enterprise by communicating actual
position of the company with other members and gathering their views and opinion to make it
more powerful.
Critical analysis of different methods of communication, coordination and
monitoring:
There are various types of methods that are used by the managers of Healthy and Yummy
for the purpose of proper communication, coordination and monitoring process. These are used
in human resource department of the organisation in order to resolve the issues that are taking
place in different divisions. All of them are lack of desk space, language barrier and remote
working. These are very effective for the resolution of the problems as they are used to
communicate each and every aspect which is resulting in business challenges (Bruce and
Stephens, 2017).
Recommendation: It has been recommended to the managers of Healthy and Yummy to
use appropriate methods of communication, coordination and monitoring so that business can be
operated in appropriate manner.
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CONCLUSION
From the above project report it ash been concluded that there are four major aspects that
are required to operate a new venture in an appropriate manner. These are finance, HR,
legislations and communication. It is very important for the business entities to follow all the
regulations that are imposed by the government as it can help to operate the business in a
successful manner.
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REFERENCES
Books and Journals:
Anderson, W. and et.al., 2017. The dialogue and advocacy initiatives for reforming the business
environment of the tourism and hospitality sector in Tanzania. Tourism Review. 72(1).
pp.45-67.
Bowie, D. and et.al., 2016. Hospitality marketing. Routledge.
Bruce, J. and Stephens, C. A., 2017. Bridging secondary and postsecondary leadership
experiences: A toolkit for leadership learning facilitators. New directions for student
leadership. 2017(155). pp.95-106.
Charterina, J. and Barrutia, J., 2014. Synergistic effects of cultural reshaping on a city's
hospitality enterprises. Tourismos. 9(1).
Chung, G. and Chung, D., 2018. WOW the hospitality customers: Transforming innovation into
performance through design thinking and human performance technology. Performance
Improvement. 57(2). pp.14-25.
Ervin, S. A., 2016. Social Business Plan and Publishing Proposal for Global Toolkit.
Foster, M. and Carver, M., 2018. Explicit and implicit internationalisation: Exploring
perspectives on internationalisation in a business school with a revised
internationalisation of the curriculum toolkit. The International Journal of Management
Education. 16(2). pp.143-153.
Gnanapala, W. A. C., 2017. Public relations in hospitality marketing. Routledge Handbook of
Hospitality Marketing.
Higgins-Desbiolles, F., Moskwa, E. and Wijesinghe, G., 2017. How sustainable is sustainable
hospitality research? A review of sustainable restaurant literature from 1991 to 2015.
Current Issues in Tourism, pp.1-30.
Lub, X. D. and et.al., 2016. The future of hotels: The Lifestyle Hub. A design-thinking approach
for developing future hospitality concepts. Journal of Vacation Marketing. 22(3).
pp.249-264.
Singh, R., 2015. Empirical examination of the impact of total quality services on hospitality
industry business. Journal of Quality Assurance in Hospitality & Tourism. 16(4).
pp.389-413.
Online
Types of cost. 2018. [Online]. Available through:
<https://quickonomics.com/types-of-costs-of-production/>
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