The Hospitality Business Toolkit

This report focuses on the hospitality industry and provides insights into managing financial performance, HR life cycle, legal issues, and more. It explores principles of financial management, double entry bookkeeping, stages of HR life cycle, and the impact of employment and contract law on business decision-making. The report also offers recommendations for effective business management.

THE HOSPITALITY BUSINESS
TOOLKIT.

Table of Contents
INTRODUCTION...........................................................................................................................3
SCENARIO 1...................................................................................................................................3
Financial performance and Investigate the principle of managing and monitoring financial
performance. ...............................................................................................................................3
Double entry book keeping system of debits and credits to records............................................4
Produce the basic trial balance applying use of the balance off rule to complete the ledger......5
Analyses the sales and purchase transactions to compile a trial balance.....................................6
Transactions and produce an accurate trial balance.....................................................................6
SCENARIO 2...................................................................................................................................6
Review different stages of the HR life cycle applied to a specific hospitality job role...............6
Develop a performance management plan...................................................................................7
Evaluate the importance of HR life cycle in relation to strategic talent management.................8
Judgement and recommendation for HR processes and documents............................................8
SCENARIO 3...................................................................................................................................9
Explaining legal issues affect to hospitality industry by exploring legislation for organization.9
Employment and contract law has a potential impact on business decision-making................10
Examine the potential impact of regulations and standards on decision making......................10
Reflect on the potential impact of regulations, legislations and ethical principle.....................11
SCENARIO 4.................................................................................................................................11
Different functional role the department within the hospitality industry..................................11
Different methods of communication, coordination and monitoring........................................12
Analyse different methods of communication, coordination and monitoring within the
company.....................................................................................................................................12
Critical analysis different methods............................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The hospitality industry is the board category of field work within the service industry.
That includes food and drink services, event planning, theme parks, transportation and lodging
services as well as hotels, bars and restaurants. This industry have their complete focus in higher
customer satisfaction by providing the best quality of services to them. The present report will be
based on Fit and Fine restaurants. The report will investigate to manage finance and transactions
to minimize costs responsibility within the hospitality industry. This will assess how to manage
human resources life cycle within the content of HR strategy. This will analysis the potential
impact of legal and ethical considerations on hospitality business. At the end of report, will
explain importance of coordination and integrating various functions of department within the
hospitality industry.
SCENARIO 1
Financial performance and Investigate the principle of managing and monitoring financial
performance.
All the restaurants mainly have all business transactions which is also have fit and fine
restaurants. Company has main services sales, finished products and purchase raw materials.
There are some important denouements which are highly important for fit and fine restaurants
like bank statement, receipts of credit cards and many more (Bezvesilnaya and et.a,., 2020). For
that management first make ledger then prepare trial balance for proper records. Here is going to
discuss on principle of managing and monitoring financial performance are as follows:
Principles of managing performance:
 The most important think is that spend less what company earn by company. Main
concept of this to save money by business first.
 Put money in effective terms of activities which are more important and effective for
business and for its growth factors.
 Company need to prepare the budget which are reasonable and attainable helps in
keeping the cost under control.
 Under stand the risk first which will be helpful for influences the business and its success.
Monitoring financial performance:
 Prepare financial statement for analysing financial performance of company.
 Prepare trial balance account for managing work.

 Analyse the cash flow by preparing cash flow statement and fund flow statement.
 Analyse financial performance by using key indicator statement.
Double entry book keeping system of debits and credits to records.
Book keeping concerned with recoding business transactions. That have some principles
which are as follows:
 Two parties: Each and every transaction have two parties debits and credits the records.
The fit and fine restaurant need to create corresponding debits for the same amount.
 Giver and receiver: every transaction of fit and fine restaurant have giver and receiver at
the workplace in order to manage work in better manner (Boella and Goss-Turner, 2019).
 Exchange of equal amount: The amount of money need to manage all the transaction
the party given is the equal to the amount party who is received.
 Separate entity: under this system, fit and fine restaurant need to treat all the entry as
separate entity from the owner. Here the business is considered as the separate entity for
business.
 Dual aspects: each and every transaction into the fit and fine restaurant divided into two
parts like the left side transactions are debits and right side is credited in an effective
manner.
Examples of ledger with journals of Fit and fine restaurant:
1. Cash sales £100 and on account sales £120
2. Bought good from farmer £ 600 paid cash £150 cash and remaining not payable.
Journal entry:
S. no Particulars Debit £ Credit £
1 Cash account
Account receivable
To sales
100
120
220
2 Purchase account
To cash
To Farmer
600
150
450
820 820

Ledger account:
Sales account
S. No. Particulars Amount
£
S. No. Particulars Amount £
Cash 100
Account receivable 120
Closing balance 220
Total 220 Total 220
Opening balance 220
Purchase account
S. No. Particulars Amount
£
S. No. Particulars Amount £
Cash 150
Farmer 450
Closing balance 600
Total 600 Total 600
Opening balance 600
Produce the basic trial balance applying use of the balance off rule to complete the ledger.
The trial balance is prepared by fit and fine restaurant in order analyse the total value of
debit side with total value of credit side. That means debit side equal to the credit side. A balance
of trial balance assures the there is not error and mistakes in recording the transaction.
Example of trial balance:
Trial balance
Particulars Debit (in £) Credit (in £)
Cash 70

Sales 220
Purchase 600
Farmer 450
Total 670 670
Steps in trial balance:
Fit and fine restaurant need to prepare a trial balance in this company have need to
closing balance of ledger accounts and the cash book as well as bank book (Breuer and Lüdeke-
Freund, 2018). Then prepare the account column sheets and fill out the account name and the
balance of such account in appropriate debits and credits.
Analyses the sales and purchase transactions to compile a trial balance.
The above mention example reflect that the sales and purchase transaction of fit and fine
restaurant which have need to analyse by company (Cabral and Jabbour, 2020). The sales and
purchase transaction reflects that the sales of firm to the customers and purchase reflect that the
purchase cost into the business in an effective manner. This is another important part of the
business reflected business in a proper manner.
Transactions and produce an accurate trial balance.
The above mention trial balance reflect that the complete moth sales and purchase
happens into the company. This creates more effectiveness for business and its needs. There are
various principles which are help to monitor and managing performance at workplace in
effective manner (Dzhandzhugazova and et.al., 2016). In order to manage cash flow company
need to prepare cash flow statement and fund flow statement. This creates more effectiveness for
the business.
SCENARIO 2
Review different stages of the HR life cycle applied to a specific hospitality job role.
Human resources life cycle is the continuous process which is integrated with HR
activities at the workplace in effective manner. There are 5 stages of HR life cycle which have
need to follow by Fit and Fine restaurant help to manage complete human resources at
workplace. The stages of HR life cycle are as follows:
Recruitment and selection:

Recruitment ad selection is the best part of the company which is help to select best
candidate for company in order to achieve goals and objectives of fit and Fine restaurant
(Emsbo-Mattingly, 2016). In this process company can taking the good candidate in pipeline for
ensuring about the best people available for each and every role into the business.
Induction:
Induction is the round where HR persons of fit and fine restaurant give complete details
to new joiners like founder name, rules and regulations and another things.
Career planning and development:
In this process company provide complete training to new comers about work and its
process in an effective manner. Here HR person find the potential candidate and actual skills,
interest and talents of employees.
Retention:
Here, candidate loss their interest from work and start again work with company
(Friedman, 2019). For that management need to provide complete tools and equipment,
environment and skills set they need in order to do their job with company.
Terminations phase:
Most of the time, company member loss their interest from job and at that management
take decision to terminate such employee or employee make plan to move from company.
Those are the stages of HR life cycle which company have need to work and make plan
as per cycle.
Develop a performance management plan.
Performance management is the most important think where manager use for aligning
their knowledge workers and resources for the strategic objectives in order to achieve goals of
Fit and Fine restaurant. There are some steps of plan are explains below:
 Plan: here management need to assess the complete priority and work process. Through
that management have idea about work and able to provide complete online process of
work checking. Here HR manager analyse the complete improvement area for food and
beverage manager.
 Monitor: in this process HR manager analyse complete performance by food and
beverages manager as per expectation required by company (What Is Performance

Management?, 2019). As well as management provide some improvement tips to them in
order to give best work performance.
 Review: review the performance as per requirement of company and management needs.
Here management take support from other manger, colleagues and staff member in order
to review performance of manager.
Performance management plan:
Objectives Criteria Resources Schedule Outcomes
To improve
kitchen safety
techniques
Uses safe and modern
kitchen equipments
Professional
training to use
kitchen equipments
.
Approx. 2
months
Every employee
have idea to use
kitchen
equipment easily.
To improve
invention into
food and
beverages.
Serving innovative and
attractive juices and
healthy foods.
Training and
development and
checking online
food invention
classes
Minimum
30 days.
Increase
gymnasium
customers as well
as youngsters.
Evaluate the importance of HR life cycle in relation to strategic talent management.
The talent management is the constant process which is involves attracting and retaining
high quality of employees in order to develop business skills and motivating them for improving
their work performance. HR life cycle is an important process for business and for its growth
factors. Those importances are as follows:
 Through that employer able to motivate employees for working in better manner.
 To select best and skill able candidate for achieving goals and objectives of company in
effective manner (Haddock-Millar and et.al., 2018).
 Organize training and development session for improving skills and manage talent of
employees towards work.
 Handle all the issues and problems by employees.
Those are the benefits and importance of HR life cycle in relation to strategic talent
management in effective manner.

Judgement and recommendation for HR processes and documents.
Recommendation and judgement at each stage of Human resources life cycle:
 At the stage of recruitment and selection, manager of Fit and Fine restaurant can
organize the campus recruitment process. That is help to hire the best candidate for food
and beverage manager from the options of students. At the stage of induction, management need to give complete information about
company to candidate not to make any hidden informations. That is help to employee in
order to complete work by following process. Development stage is refers by organizing training and development session for
employees help to manage work in respective manner (McLarnon and et.al., 2019). Retention stage, manager need to provide incentives and rewards for develop employee
retention at workplace.
 Separation, at this stage manager need to take feedback and suggestion from employee
about company and its environment.
SCENARIO 3
Explaining legal issues affect to hospitality industry by exploring legislation for organization.
Legislations are passes through that law and government which are help to businesses
and fit and fine restaurant to smoothly run the business in effective manner. There are various
legislations which are important to follow by the company and business to resolve all the issues.
Those legislations are underpinned:
Food safety legislation:
Food safety legislation is important and effective legislation which is used by food and
beverage manager on daily basis at the time of preparing food (Naik and Kanade, 2019). Like: at
the time of the preparing food management and employee have need to wash their hand, use
clean equipments for cutting food and complete cooked food.
Employee legislation:
This is also applicable on the daily basis transaction like the equal opportunity and
business work in effective manner.
Customer legislation:

This is also used on daily basis because of customer comes on daily basis at the work
place. In this main concept is included which is customer satisfaction as per quality of food
provided by fit and fine restaurant.
Alcohol licensing:
This is applicable when employee serves alcohol to customers on daily basis (Pesce and
Montana, 2019). In that management need to get local licensing for restaurant or for serving
alcohol customers.
Those are the legislations which are important to manage by company.
Employment and contract law has a potential impact on business decision-making.
Most of the time company law affect to the food and beverage department to employees
relationship.
Employment law:
This law generally introduce for protecting rights of employees as well as covers all the
aspects of employee relationship. This law regulates the relationship between the employer and
employee as well as it is the collection of various rules and regulations for the business. This act
says that the employer able to hire the best candidate and employee can work hard for the
business (Van Bockhaven and Matthyssens, 2017). This can affect to decision-making process of
food and beverages manager because applying rules and regulations. For example: if employee
is injured at the time of work in kitchen then manager need take decision as per employee law
which is healthy and safety law. Through that is can be affect to decision-making process of food
and beverage manager.
Contract law:
Contract law is the agreement which created into two parties of their mutual
understanding and obligations. That are enforceable by the law. The breach of contract is failure
without any reason any legal excuse for performing any promise (Vettori, 2018). For example: if
employee breach the contract then it is affect to business in that manager have right to take
action against of employee.
Examine the potential impact of regulations and standards on decision making.
There are laws which can affect to decision-making process of food and beverage
manager. Those are explaining below:
Food and safety act 1990:

This framework is provided all the food legislation. This has main responsibility to food
businesses which are help to ensure that food businesses serves or sells products as per quality
which are expects by customers (Food safety act, 2018). This has need to use by food and
beverage department of fit and fine restaurant. In this management need to meet the fully
hygiene products and fruits for making juices.
Healthy and safety act 1947:
This act provides complete safety measures to employee at the workplace in effective
manner. This creates more importance for department to use and create potential impact on
decision-making process (Yanmaz and et.al., 2018). Each and every situation happens at
workplace in that management need to take decision as per safety act.
Reflect on the potential impact of regulations, legislations and ethical principle.
Rules and regulations are give their potential impact in the business. Cyber security is
important in order to manage food department. At that manager have need to follow which are
related to law for better work ad improve employment contract (Bezvesilnaya, and et.al., 2020).
On the other side, data protection is critical aspect in which management have need to mention
within the hospitality sector. Like if manager have receipt of food with mention name and
contact number of customers then manager have need to protect data by using data protection
act.
SCENARIO 4
Different functional role the department within the hospitality industry.
There are various departments into the fit and fine restaurant where manager have need to
play their functional roles which are explains below:
HR department;
Hr department have role to hire the best and potential candidates for company in order to
achieve goals. Also, have role to organize training session for employee in order to improve
performance.
Food and beverage department:
This department have role to take care food serving and cooking area. In that
management have idea to about the food and customer expectations (Functional departments in
hospitality industry, 2018).
Food production department:

This department have role to ensure about the cooking of foods take place in the hygienic
environment.
Front office department:
Front office department have role to ensure about the guest are welcomed friendly and
professionally manner (Cabral and Jabbour, 2020).
Those are the departments and their functional role into the Fit and Fine restaurant.
Different methods of communication, coordination and monitoring.
Effective communication, coordination and monitoring is the important part in hospitality
industry. There are various methods of communication which are explains below:
Methods of communication:
There are various methods of communication which are help to communicate messages
to others in effective manner. Verbal communication is occurs with employee engage in
speaking with others about company details. Non-verbal communication is spoke often says
more than the actual words in effective manner. Written communication is a like the mail, memo
and report of the business (Dzhandzhugazova and et.al., 2016). Those are help to food and
beverage manager for convey their message about work.
Different methods of coordination:
This is created generally by planning, organizing and clearly defined objectives in
effective manner. Manager of food and beverage department need to make proper planning for
work is help to manage work in specific manner.
Different methods of monitoring:
There are various methods of monitoring which are help to monitor the performance of
company at market place (Friedman, 2019). On of the best monitoring method is customer
feedback which must because in that management take feedbacks from customers and make
changes as per them.
Analyse different methods of communication, coordination and monitoring within the company.
Verbal communication is used by fit and fine restaurant's food ad beverage manager for
convey their messages to other team members in effective manner. This is the great way to
communicate and help to understand in better manner to employees. Other, planning is method
of coordination in that manager make proper planning for managing work and serving foods in

specific manner (Breuer and Lüdeke-Freund, 2018). On the other side, taking feedback from
customer is another method of monitoring performance of restaurant at market place.
Critical analysis different methods.
Written communication is give positive impact when share some documents to other but
convey any then create jargon which are not understood by employee when verbal
communication is good. Planning is give positive impact when employees understand well but
fails when employee not understand and work. Taking feedback from customer is good because
through manager can change all the requirements but all the customers are not same and not like
all the changes.
CONCLUSION
From the above study it had been concluded that the business toolkit required by each
and every organization for managing their business. The report has been present the different
principles of managing and monitoring financial performance for that report include some
examples of ledger and trial balance. Recruitment and selection, induction, development and
separation has the important stages of HT life cycle. The report produced by the performance
management plan for food and beverage manager. Employee legislation, alcohol legislation and
food safety legislation had been important legislation which can affect the decision-making
process of food and beverage manager. Verbal, non-verbal and written communication has the
different communication methods which impact to the business and its growth factors.

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