Cost Control and Financial Management Practices at Royal in the Park Hotel

This report discusses the cost control and financial management practices at Royal in the Park Hotel, Brisbane. It covers the front and back of house operations, advertising, menu balancing, waste management, and financial control methods used by the hotel. The report highlights the importance of proper financial management in the success of a business and how it impacts customers and suppliers.

Running Head: ROYAL IN THE PARK HOTEL
Royal in the Park Hotel
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Running Head: ROYAL IN THE PARK HOTEL
Robert Schroder is the manager of Royal in the Park Hotel, Brisbane. The hotel is a Food
and Beverage outlet that offers services such as fast food eateries, establishments of catering
services and high end restaurants . The manager is determined to offer good food and high
quality customer service thus improving the overall experience of all clients. By working closely
with all members of staff such as the chefs and the waiters, Robert Schroder has created a good
business environment that makes it possible for Royal in the Park Hotel to compete on the same
level with other competitors in the industry (Chou 2014, p.12).The hotel is located close to
Brisbane River and the Botanic Gardens of the city thus creating a very beautiful and quite
environment for all the clients visiting. This report focuses on the maintenance of front and Back
of house operations of the hotel and how they are effective in managing the hotel so as to attract
more customers.
Front of the house operations are very important to any restaurant outlet as they portray
the restaurants image and give out the first impression to any customer. This is because it is the
area that all the customers are exposed to while enjoying their stay in the restaurant. In managing
the cost of operating all the Front of house operation, Robert Schroder plays a very important
role for the hotel. The manager ensures that members of the staff are mixed in an appropriate
way hence prevent amateurs form serving one lunch rush and the veterans in a slow dinner.By
mixing the staff, it is quite easy for them to serve the customers as the weaker members of the
staff are assisted by those with experience (Wood 2018, p.158). This plays an important role in
improving customer’s satisfaction. In minimizing the costs, the manager uses few members of
the staff to set-up the restaurant and makes use of more workers when serving the customers.
The hotel is also prone to slow nights and to minimize the costs, Robert Schroder makes sure that
a cancellation fee is issued to members of the staff that are scheduled but sent home. By doing

Running Head: ROYAL IN THE PARK HOTEL
this, the staff members are given a small pay since they are not working as compared to what
they were supposed to be paid while at work yet they did nothing.
Attracting more customers is one of the most important things that the manager seeks to
fulfill while reducing the total costs for advertising. For Royal in the Park Hotel, the adobe
Photoshop is used to come up with advertisements for any special event or even promotion that
is taking place in the hotel. This saves a lot of money while also reaching out to a large number
of people within a short period of time( Davis 2018).
Balancing the menu is also another important way of reducing the costs while increasing
the profits that the hotel makes. The hotel balances low cost menus and high cost menus in order
to make it easy for all the sales to be balanced. In this way, the hotel is able to make from both
low cost and high cost menus regardless of the season whether off peak or on peak.
The Back of House Operations are also important in any particular restaurant in the
hospitality industry. This includes all the activities that take place in the kitchen, office and
employee areas such as bathrooms and the rest areas. Robert Schroder ensures that the inventory,
ordering and security technologies used by the hotel are able to prevent the food from spoiling.
This makes it easy for the hotel to store food for longer periods without investing in more and
also helps in reducing the wastes. The manager also keeps the records of all the monthly and
yearly demand cycle so as to keep the hotel prepared during any sales peak or off peak. Suppliers
are also an important factor in the success of Royal in the Park Hotel as the work together with
the administration to reduce the number of wastes. The manager has made it possible for the
hotel to buy food products in bulk but the supply is done in installments depending on the current
demand. This reduces the level of wastage from food products that have gone bad as a result of
purchasing products in bulk (Valta 2015,p.3335 ).

Running Head: ROYAL IN THE PARK HOTEL
Robert Schroder requires all the chefs of the hotel to keep track of all the costs of food on
a regular basis so as to know the exact location of each cost on a daily basis . According to
Robert Schroder, having a consistent report of the current situation of the hotel, makes it very
easy to change all the food costs in the hotel.
Having control of all the financial requirements is a very important job that Robert
Schroder serves as the Food and Beverage manager of Royal in the Park Hotel. To makes this
task easy, the manager has separated a number of duties to the various members of the staff.
These financial duties involve processes such as auditing reports, bookkeeping and all the
deposits that have been made in the restaurant. This makes it possible to reduce all the cases of
fraud that may be done by the staff as each person will be held responsible for any error that
occurs.
Physical audit is also an important method of financial control that Robert Schroder uses
in the day to day activities of the restaurant. According to the manager, all the cash or any other
physical asset in the restaurant is hand counted in order to reduce any hidden errors that may
have been made while balancing the accounts. These activities are carried on a daily basis before
the restaurant is closed.
Robert Schroder has ensured that the restaurant uses an accounting system that allows
double entry of details so as to ensure constant balancing of all the accounts. This is done on a
weekly basis so as to check the current state of all the systems thus making it easy to detect any
error as early as possible and make the necessary changes that are essential to the success of the
business (Dopson 2015, p.130).
In conclusion, the cost control and financial management practices that Robert Schroder
uses are very important in the growth of Royal in the Park Hotel. By controlling all the costs of

Running Head: ROYAL IN THE PARK HOTEL
the restaurant, it is very easy to make maximum profits as the company will reduce all the
unnecessary costs while guaranteeing customer satisfaction. Balancing the menu, reducing
wastage and mixing all the members of the staff makes it easy for the restaurant to reduce the
costs incurred in offering the services to clients. Financial management determines whether a
business succeeds or fails. Proper management of all the accounts impacts greatly on a number
of people such as customers who make payments through their credit cards as their confidence in
the restaurant needs to be boosted. The suppliers also depend on the accounting system of the
hotel so as to determine the worthiness of the restaurants credit. When suppliers are fully aware
of all the financial reports of the business it is easy to offer credit services as payment is
guaranteed ( Borras 2015,p.14).

Running Head: ROYAL IN THE PARK HOTEL
References
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and wastewater management in the food and beverage industry. Desalination and Water
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Running Head: ROYAL IN THE PARK HOTEL
Question Guide
1. What role do you serve in the hotel?.....................................
2. In which way does the hotel ensure maximum utilization of services offered by the
members of staff?.................................................................................
3. How do you minimize the costs of Front House Operations?
4. Does the hotel have slow nights? If yes, how do you manage the operation costs during
these nights?........................................................................
5. Which type of advertising does the hotel use?.....................................
6. In which way does the hotel balance its menu?...............................
7. What measures has the hotel put in place to prevent food from spoiling?
8. Does the hotel have records of sales during sales peak or off peak? If yes explain its
importance……………………………………………….
9. How does the hotel manage wastes?..................................................
10. Minimizing food costs is very important for any hotel. In what way does Royal in the
Park Hotel accomplish this?
11. What method of financial control does the hotel use?................................
Which type of accounting system has the hotel adopted? How is it effective?