Hospitality Business Toolkit

This report provides a comprehensive toolkit for managing a hospitality business, focusing on a London-based restaurant called Refreshment Drink Corners. It covers key areas like financial performance monitoring, HR life cycle management, legal compliance, and effective communication strategies. The report also includes practical examples and case studies to illustrate the concepts.

Hospitality Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Principles of monitoring and managing financial performance.........................................1
2: Double entry book keeping system and basic trial balance................................................3
3. Balance off rule to complete the ledger..............................................................................4
TASK 2............................................................................................................................................5
1. Different stages of HR life cycle for retaining and developing talent................................5
2. Importance of HR life-cycle for talent management..........................................................7
3. Recommendations for improving HR processes................................................................7
4. A performance management plan.......................................................................................7
TASK 3............................................................................................................................................9
1. Specific legislations adhere within hospitality organisations.............................................9
2. Impact of company, employment and contract law on decision making...........................9
3. Reflection on potential impact of regulations, legislations and ethical principles on decision
making processes..................................................................................................................10
TASK 4..........................................................................................................................................10
1. Different functional roles within hospitality sectors........................................................10
2. Different method of communication................................................................................12
3) An analysis on different methods of communication, coordination and monitoring within
department of hospitality organisation.................................................................................13
4. Critical analysis on different methods of communication................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Today, companies dealing under hospitality sector concerns more on every factor,
through which they can provide high quality of services. It includes customers' demand,
proficiency of workers, latest technologies and more. In this regard, business toolkit refers to a
collection of organisational practices based on a practical and incisive approach. It includes
templates, self-evaluations and management processes, actions plans etc. for delivering genuine
benefits to business partners (Ervin, 2016). The present report is based on a London Based
Restaurant named by Refreshment Drink Corners, that is specialised in serving fresh salads,
blended juice and smoothies. It is located nearby a gymnasium which proves beneficial to reach
potential customers. It highlights life cycle of HR within hospitality industry for development of
performance management plan for specific job role. Here, a discussion is also done on some
legislation for running business smoothly.
TASK 1
1. Principles of monitoring and managing financial performance
Finance is considered as most important aspect under a business which helps in
conducting entire operations most appropriately. As per present scenario, as entrepreneurs of
Refreshment Drink Corner has evaluated that due to high competition, it is difficult to earn high
profitability (Bruce and Stephens, 2017). Therefore, in order to manage and monitor financial
performance, its management needs to concern on following principles:
Principle I: Budget must be properly established: It entails that introduce necessary
resources first for achievement of business goals and objectives. Further, managers of respective
enterprise should measure financial performance on regular basis, identify transaction errors as
well as discover substantial changes within organisational conditions.
Principle II: Budget should based on thorough analysis: It states that managers of
Refreshment Juice Corner should frame purpose of budget as per business mission and goals.
They must plan a proper strategy to enhance resources to reduce future short comings.
Principle III: Actual financial result should compared to budget on daily basis: This
would help in discovering transaction errors, detecting changes under business environment and
measuring financial performance as well. Managers of given restaurant should ensure that
unnecessary expenditures are avoided.
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Principle IV: Rectify condition when financial result exceeds the planned budget: In
such condition, managers should determine cause behind variances of financial outcomes,
evaluate strategies and take corrective actions (Sipe, 2013).
For instance, the actual source of income and type of expenditures in general households
can be recorded on monthly basis in following manner:-
Incomings (Source of
Income)
Outgoings (Types of
expenditures)
Wages Weekly food shopping
Gifts Drinks
Benefits Lunch Purchases
Allowances Household utility bills
Therefore, it is recommended to managers of Refreshment Juice Corner to prepare
financial statements, for monitoring financial performance. Furthermore, they should also need
to make aged debtors trial balance, inventory records, working capitals statements and financial
ratios etc. This would help in identifying actual flow of cash for determining financial
performance.
Explanation of key financial terms:
i) Sales: It is a basis terminology in finance that consists record of sales transaction in terms of
cash and credit sales. This would aid managers of Refreshment Juice Corner in collecting the
details of quantity of goods received, expenses incurred, sales made and balance payable
(Weinstein and Morritt, 2012).
ii) Purchase: Here, in this account, inventory purchases and stock available for sale is calculated
for obtaining cost of goods. For an instance: In Refreshment Juice Corner, beginning inventory
balance is 50,000 Euro and purchases 80,000 Euros of inventory, then cost of goods sold during
a month can be calculated as with an ending inventory at balance of 11,000:
(Beginning inventory + Purchase – Ending inventory) = Cost of goods sold
(£50,000 + £80,000 - £11,000) = £2,000
iii) Types of cost: Costs are most essential expenditures which must be calculated for monitoring
and measuring performance. It can be categorised in various terms as per business output like
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financial accounting, budgeting, cost accounting, capital budgeting and more. Therefore, main
types of cost are categorised as Fixed and Variable Cost. Here, fixed cost in business do not vary
with output of business like rent, depreciation, labour wages, property taxes and insurance etc.
While, variable cost fluctuate with changes in output in direct proportion such as electricity bill,
cost of goods, labour and material cost etc.
2: Double entry book keeping system and basic trial balance
Double entry book keeping system states that entire transactions of business and amount
should be entered into two accounts (Nickson, 2013). Here, accountants of Refreshment Drink
Corner needs to ensure that accounting equation i.e. assets and sum of liabilities and owners'
equity must be balanced. For instance:
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
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Debtors 700
Till shortage 152
37502 37502
Trial balance
It enlist the balance within each ledger accounts in two main terminologies that are debit
and credit accounts. The total of both accounts must be identical as shown below:
Particulars Debit Credit Transaction amount
Wages 28976 28976
Gifts 25000 25000
Benefits 32000 32000
Allowances 16900 16900
Weekly food shopping 24000 24000
Clothes 43230 43230
Gifts 12000 12000
Household utility bills 2000 2000
Drinks 4000 4000
Lunch purchases 9000 9000
Total 94230 102876 197106
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3. Balance off rule to complete the ledger
Balancing off states that at end of financial year, all accounts statements are closed and
then forward into next year. This would help in analysing current financial performance of
business as shown below:-
Particulars Debit Credit
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
TASK 2
1. Different stages of HR life cycle for retaining and developing talent
In an organisation, major role is performed by HR department in introducing, retaining
and developing best talented workforce. In context with restaurant business, human resource
manager performs five stages to develop and retain workforce. It includes recruitment, on-
boarding, career development, employee recognition and off-boarding (Godnov and Redek,
2018). For example: For recruiting a chef within cooking department, HR managers perform in
following manner:-
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Recruitment: It is first stage of employee life cycle where, managers employee the
workers by framing a proper strategic recruiting process. It includes identifying roles and
responsibilities need to perform a specific job role, giving advertisement on job portal, preparing
documents for interviews and selecting the best one. Therefore, for hiring chefs in cooking
department, HR managers of Refreshment Juice Corner use external recruitment source (online
procedure) and take interview.
On-boarding: It refers to important stage where new recruiters mostly decide for how
long they can stay within chosen company (Mejia and Torres, 2018). Therefore, in order to
influence them to retain for longer period, HR managers of given restaurant will provide on-
board training for a period of 90 days. Here, they try to establish good relationships among new
and old workers for developing a niche.
Career Development: By giving career development opportunities to workers,
Refreshment Juice Corner can gain success to retain talented workforce, for longer period. Here,
at the time of interview, managers analyse realistic goals of workers and align their roles
accordingly.
Employee Recognition: To keep happiness of employees, it is another main stage of HR
life-cycle, where managers recognise their performance by providing good incentives and
appreciate for smaller achievement.
Off-boarding: It is last stage which states that when any employee leaves office then it
demoralises other workers also (King and Lee, 2016). Therefore, to cope up from such situation,
need to make proper documented processes for off-boarding an employee in appropriate manner.
For hiring new chefs under cooking department, HR managers will carry recruitment
process in following manner:-
Box 1: Advertisement related to job vacancy for chef position will be placed on job portal.
Box 2: Through screening resumes and matching profile according to company's requirements,
candidates are selected for further interview procedures.
Box 3: Interview Questions: What's your last supper meal? Why did you decide to become a chef? What is your cooking style?
 What is your favourite cuisine to cook?
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Box 4: To make new employees familiar with working environment, managers provide proper
on-boarding training for 90 days.
Box 5: For retaining talented new and existing workers, their performance are evaluated on the
basis of 360°. This would help in determining the contribution of each worker in achievement of
customer satisfaction.
Box 6: Providing training like apprenticeship aid employers of Refreshment Drink Corners in
getting best talented workforce. This would help in getting efforts of workers for providing best
services to customers. Similarly, employees such as chefs get chance to enhance their skills for
career development through training.
Box 7: In order to provide job satisfaction, further managers will develop promotion plan. This
would help in retaining workers for longer period.
Box 8: When an employee wants to switch job then manager will firstly identify the reason
behind same. Then they develop strategies like developing positive culture, mentoring and
creating an open dialogue to retain them by resolving their issues.
Box 9: To identify reason behind exit of an employee, managers of Refreshment Drink Corner,
organise an open dialogue as:- Under which circumstances you start to look for a new job? Why did you feel uncomfortable to continue to do job here? What could company do for you to remain employed here?
 What was the best part of your job in company?
2. Importance of HR life-cycle for talent management
For hiring, developing and retaining talented workforce, it is essential for HR managers
of Refreshment Drink Corner to understand the concept of employee life-cycle. This would help
in resolving issues related to talent acquisition and retention for longer period. Through
analysing different stages of HR life-cycle, they can sources to broaden their reach as well as
improve efficiencies as well (Eltayeb, 2018). Along with this, by background screening
procedure, which is a main component of talent acquisition, managers can develop efficient
approach to select candidates from a wide pool of talent. Furthermore, through exit approach,
they can also evaluate techniques to influence workers who want to switch over their jobs to
remain in company.
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3. Recommendations for improving HR processes
In order to retain workers, it is highly recommended to managers of Refreshment Drink
Corner to develop strong policies, to improve HR processes. They must concern on adopting
proper approach for measuring performance of each worker. Here, after evaluation, management
need to make open discussion with those employees, whose performance are still not improved
after taking training. This would help in developing another policies for increasing their
productivity, by engaging them in group task. Here, they can learn by observing seniors to give
best performances.
4. A performance management plan
Performance management plan refers to a tool for improving and enhancing productivity
of workplace (Dirrigl Jr and Noe, 2018). For this process, managers of Refreshment Drink
Corner used to identify cause related to poor performance and take actions for improving the
same. For example: To resolve an issue related to rude behaviour of an employee with other
colleagues, a short role-play script between manager and employee is made in both negative and
positive manner, as given beneath:
Script 1:
Manager: I have been observed from last four to five days that behaviour of Mr.
Anshuman has become so rude with his colleagues.
Employee: Yes Sir, I have been also noticed the same that Mr. Anshuman who known
for his calm and friendly behaviour, now become more offensive towards some situation.
Manager: Do you know the reason behind why he behaves so?
Employee: Yes Sir, as due to heavy pressure of work, his stress level has raised which
turns his behaviour into negative manner.
Manager: Okay, so what do you think what we have to do for resolving such an issue.
Employee: Sir, we can try to reduce his work pressure by recruiting some more persons
in his team.
Manager: Okay, I will soon discuss this matter with seniors then take some actions
accordingly.
Script 2:
Manager: I have been observed from last four to five days that behaviour of Mr.
Anshuman has become so rude with his colleagues.
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Employee: Yes Sir, I have been also noticed the same that Mr. Anshuman who always
talk so rudely and refused to do work as per instruction.
Manager: Do you know the reason behind his offensive behaviour?
Employee: No sir, I don't know why he behaves so because whenever I used to ask him
about this, he refused to talk and give reply so rudely.
Manager: Then, what do you think what he have to do?
Employee: I think, we have to take some actions against him so that his behaviour can be
turned into positive one.
Manager: Well, I think if we give him notice period of 7 days and informed him that he
will not change his behaviour then company may terminate him.
Employee: Yes sir, I think it will be a perfect idea for turning his rude behaviour into
positive one.
Issues related with talent acquisition and talent retention:
Since employees are the main source of a company therefore, to hire best candidates in
business, it is essential to take effective approaches of recruitment. But shortage of sourcing
taken as main issue for talent acquisition under competitive marketplace due to high
competitiveness. In context with Refreshment Drink Corner, as it is used background screening
method for hiring employees. But its refers as main critical component of strategy related to
talent acquisition. Under this process, if managers of respective restaurant fail to obtain
authenticate information then it leads to loss quality talent. It also arise vulnerable risk and
compliance issues which impact on entire recruitment process.
While in terms of employee retention, Refreshment Drink Corner also faces issues, where
monetary dissatisfaction is one of the main reason. Therefore, to hire new chefs under cooking
department, this issue can impact on morale of employees and create difficulties in front of
manager, to retain them for longer period. Along with this, there is not much dearth of
opportunities for career development under a small restaurant. In this regard, it seems also not
possible to stop workers to look for a change and gain their retention.
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TASK 3
1. Specific legislations adhere within hospitality organisations
In order to run a business within hospitality sector in smooth manner, employers of
Refreshment Juice Corner should possess knowledge related to specific laws and legislations. It
includes:
 Liquor Control Act 1987: This law has been established to control the sale as well as
consumption of alcohol, for reducing the misuse of such products. As given restaurant
serve juices, salads and other refreshment drinks to increase metabolism of health freak
customers (Foster and Carver, 2018). Therefore, as per this act it is amendable for
respective enterprise to take permission to sale alcoholic drinks to its customers.
 Food Act 1997: This act covers various aspects of hospitality industries like Food
Premises Code to govern management of associated companies, to concern on proper
hygiene of all items and food-handlers. Thus, head chef of Refreshment Juice Corner to
concern on food premises procedures. It starts from manufacturing, preparing, storing and
serving food and beverages to customers.
2. Impact of company, employment and contract law on decision making
Laws and policies related to company, employment and contract directly impact on
employee relations, performance of workers and other business activities. Therefore, these types
of laws influence mostly the decision making policies, that are made to run business effectivelt.
For example: The word LAW illustrates that L is used to designate those employees who mainly
concern on compliance, A for those workers that having responsibility to ensure compliance. On
the other hand, W reflects people who are not directly affected by company's law.
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3. Reflection on potential impact of regulations, legislations and ethical principles on decision
making processes
Through understanding the importance of legislations and rules of company, I have
analysed that adhere such laws help in reducing the chance of illegal activities under a business.
As a manager of Refreshment Drink Corner, through evaluating such laws like Food Act 1997,
Liquor Act 1987, Health & Safety Act 1974, etc. I have set proper code of conduct to run
business activities in ethical manner. Through analysing the market situation, I have analysed
that some companies who didn't adhere government legislation have paid heavy compensation
as:-
Companies Act or Regulation Result Fine
Bupa Care Homes Health and Safety At
Work Act 1974
Guilty £3,000,000.00
Award wining
Greenfingers Ltd.
Construction
Regulation 2005
Guilty £20,000.00
Toby Smith Health and Safety At
Work Act 1974
Guilty £615.00
Elysium Healthcare
Ltd.
Health and Safety At
Work Act 1974
Guilty £500,000.00
Oxleas NHS
Foundation Trust
Health and Safety At
Work Act 1974
Guilty £0.00
TASK 4
1. Different functional roles within hospitality sectors
For running business smoothly in desired manner, there are various functional roles are
played within hospitality industry. It includes setting up organisational chart and theme to
specify different roles and responsibilities of each department (Foster and Carver, 2018). It
includes Finance, HR, Marketing, Front office and more. In this regard, some functions roles
carried under hospitality industry are described as below:
Theme Park:
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Hospitality sector:
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Hotel:
2. Different method of communication
For achieving company's mission and goals, it is essential for managers to construct a
proper flow of communication. In context with Refreshment Drink Juice Corner, it mainly aims
to become best healthy drink provider in London area. Therefore, to achieve this mission, its
managers can adopt various methods of communication as given below:-
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3) An analysis on different methods of communication, coordination and monitoring within
department of hospitality organisation
Through understanding the various types of communication methods, it has analysed that
each source that are- Group meeting, Sky Type, WhatsApp Group and more, help in conveying
messages to entire department more appropriately. As Refreshment Juice Corner deals in small
sector therefore, it is suggested to managers to use WhatsApp source of communication to
convey necessary information to workers more rapidly.
4. Critical analysis on different methods of communication
As per view point of Godnov and Redek (2018),it has analysed that by adopting different
methods of communication like Skype, Group Meeting, Telephonic call and more, a company
can perform its activities more efficiently. Therefore, in order to develop effective
communication, managers of Refreshment Drink Juice Corner also needs to adopts some other
methods rather than WhatsApp. It includes video call and group meeting methods, through
which proper discussion can be made with employees of different departments, to serve
customers more efficiently. They can also get opportunities to monitor entire performance and
develop policies for further improvement also.
CONCLUSION
It has been concluded through this mentioned report that companies dealing under
hospitality industry are needed to concern on various aspects. It includes stages of HR life-cycle
through which best talented workforce can be recruited, developed and retained for longer
purpose. Similarly, through adopting various methods of communication system, managers and
associated members of different departments can convey messages and monitor entire working
processes.
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REFERENCES
Books and Journals
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perspectives on internationalisation in a business school with a revised
internationalisation of the curriculum toolkit. The International Journal of Management
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Dirrigl Jr, F. J. and Noe, M., 2018. The teacher writing toolkit: enhancing undergraduate
teaching of scientific writing in the biological sciences. Journal of Biological Education,
pp.1-17.
Eltayeb, N., 2018. Evaluating the Service Quality of Egypt National Railways from Tourists
Perspective. International Journal of Heritage, Tourism, and Hospitality. 11(2/2).
King, C. and Lee, H., 2016. Enhancing internal communication to build social capital amongst
hospitality employees–the role of social media. International Journal of Contemporary
Hospitality Management. 28(12). pp.2675-2695.
Mejia, C. and Torres, E. N., 2018. Implementation and normalization process of asynchronous
video interviewing practices in the hospitality industry. International Journal of
Contemporary Hospitality Management. 30(2). pp.685-701.
Godnov, U. and Redek, T., 2018. Good food, clean rooms and friendly staff: Implications of
user-generated content for Slovenian skiing, sea and spa hotels’
management. Management: journal of contemporary management issues. 23(1). pp.29-
57.
Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
Weinstein, A. and Morritt, R., 2012. Segmentation strategies for hospitality managers: Target
marketing for competitive advantage. Routledge.
Sipe, L. J., 2013. Leadership for innovation in the memories business: A mixed methods study of
a hospitality and tourism marketplace. University of San Diego.
Bruce, J. and Stephens, C. A., 2017. Bridging secondary and postsecondary leadership
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Ervin, S. A., 2016. Social Business Plan and Publishing Proposal for Global Toolkit.
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