Hospitality Business Toolkit Report: Bishop Bake-smith Restaurant

This report provides a detailed analysis of a hospitality business toolkit, focusing on the Bishop Bake-smith restaurant. It begins with an introduction to hospitality management principles, emphasizing financial performance, including managing finances, expenditure, and risk identification. Task 1 covers financial aspects like double-entry bookkeeping, sales and purchase transactions, and trial balance creation. Task 2 delves into the HR life cycle within the restaurant, encompassing recruitment, selection, induction, and performance reviews. Task 3 examines relevant legislation impacting the business and the interplay of company, contract, and employment law. Task 4 explores the interrelation of different functions and roles, along with communication and coordination methods. The report concludes with a summary of the findings and references used.

Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1. 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
TASK 2............................................................................................................................................6
1. Reviewing the different stages of the HR life cycle applied to Bishop Bake-smith
restaurant.....................................................................................................................................6
2. Development of performance management plan for Bishop Bake-smith restaurant ...........8
TASK 3............................................................................................................................................9
1. Identification of specific legislation that is necessary for Bishop Bake-smith restaurant to
adhere..........................................................................................................................................9
2. The way in which company, contract law and employment has potential impact on business
.....................................................................................................................................................9
TASK 4..........................................................................................................................................10
1. Interrelation between different functions and roles within hospitality sector.......................10
2. Different methods of communication, monitoring, ordination applied in a specific
organisation department ...........................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Hospitality is vigorous relationship in between a guest and a host. It mainly include
entertainment of visitors, guest and strangers (Anderson, 2017). Hospitality industry is a wide
term which include event planning, lodging, cruise line, theme parks, restaurants and other
additional fields. Organisation operate their function in hospitality sector with a motive to
provide effective satisfaction to a customer while earning profit simultaneously. In addition to
this, it is important for company engage in the function of hospitality to operate their business
activities within government rule and regulation. Present report is conducted on, Bishop Bake-
smith restaurant in Elizabeth road,London. This restaurant is specialised in providing exquisite
food and smoothies. In this report, discussions have been made on, certain legislations,
management plan and interconnection of various roles and function in hospitality sector. Lastly,
numerous ways of communication and effective coordination and monitoring of other
department in an organisation are also included in this report.
TASK 1
1. Principles of managing and monitoring financial performance
In order to maximise performance level of an individual or an organisation it is essential
to manage and monitor day-to-day functions in effective manner. Principles are basically a
guideline in order to conduct a activity in formative manner. While, financial performance on the
other hand, is ability or a efficiency to accomplish a goal in efficient way. In relation with
Bishop Bake-smith restaurant there are some principles which will aid them to manage and
monitor their financial performance:
Composition of finance: Finance is lifeblood of any business organisation it make
internal and external activities of a company function in effective manner. In relation to this, it is
essential for Bishop Bake-smith restaurant to make formative strategies and appropriate policies
to manage their funds and use them effectively for business process. Funds are directly linked
with activities of all business departments in an organisation. In addition to this, it is the basic
responsibility of restaurant manager to find different sources of funds in order to run their
business operations in smooth and sound manner.

Manage expenditure and optimise costs: It is the first and foremost responsibility of a
business owner to manage their expenditure so to perform their business activities in cost
effective manner. This will help them to accomplish their goals with more profitability. It context
with, Bishop Bake-smith restaurant it is the basic responsibility of restaurant finance manager to
develop formative strategies and implement certain cost effective techniques like, cost analysis
and budget analysis as to operate their financial activities in sound manner. It will benefit them
to reduce their cost and utilize that same for their future purpose (Moeti, 2016).
Identification of risky factors: It is essential for an organisation to perform their
activities in effective manner so to achieve stable growth and identify potential risk uncertainty.
In context with Bishop Bake-smith restaurant it is essential for them to effectively evaluate
certain risk factor and implement formative strategies to overcome them. This will help them to
maintain their growth rate in continuous manner.
It is important for Bishop Bake-smith restaurant manager to monitor their financial
performance in effective manner in order to ensure their future sustainability.
A. During an accounting period incomes and expenditures of business organisation are as
follow:
Incomings Outgoings
Benefits Drinks
Allowances Lunch purchases
Wages Household utility bills
Gifts Weekly food shopping
Gifts
Clothes
B. Explanation of some specific terms:
Types of cost: In an organisation there are various types of business activities and
functions performed in day-to-day manner which is necessary to be operate in cost effective
manner. In context with Bishop Bake-smith restaurant it is important for their managers to
evaluate and monitor their cost techniques as this will help them to effectively determine their

profitability and performance. Mentioned below there are some certain cost related to restaurant
operations:
Variable cost: It is an expense which varies with every rise and falls. This cost increase
with increase in production and decrease with decrease in production. Variable cost mainly
include, utility of cost, sales commissions and beverage etc.
Fixed Cost: It is an expense that will remain rigid and does not fluctuate with the total
number of output and input production and sales level. Fixed cost margin of Bishop Bake-smith
restaurant remain fix and mainly include fixed administration cost, depreciation, advertising
expenses and premises rent etc.
Semi variable cost: This cost is also termed as mixed cost and semi-fixed cost. Semi
variable cost is mainly a mixture of variable and fixed components. In this cost remain fixed for
a particular level of production in Bishop Bake-smith restaurant and turn into variable after the
level of production exceeds.
Sales: Sales component is mainly a overall amount of revenue that has been earned by an
organisation in a certain period of time. In context with, Bishop Bake-smith restaurant total
number of estimated consumer served through online medium consider as an total revenue. In
addition to this, sales consist various other income other than ancillary income.
Purchase: This cost mainly include total number of amount paid by an organisation for
purchasing of raw material and other resources of fund required in day-to-day activities. In
context with, Bishop Bake-smith restaurant estimated number of raw material purchased by
restaurant in order to prepare their food and beverage treated in purchase.
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:
It is an accounting system in there is two corresponding sites namely debit and credit. In
context with Bishop Bake-smith restaurant it is essential for restaurant manager to have regular
overlook in their bookkeeping system in order to maintain their balance sheet and have proper
record of business transactions in systematic manner. Mentioned below there is a trial balance:
Particulars Debit Credit
Cash in hand (Negative Figure) 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
Total 37502 37502
Analysis of Sales and Purchase transaction to compile a Trial balance suing Double entry
system:
Sales: Sales include overall cash and credit transactions that are related to total number of items
sold and provided services. In relation with, Bishop Bake-smith restaurant their sales margin is
consist of wages and various other monetary terms that are mainly related to business core entity
(Singh, 2015).
Purchase: Purchase include estimated amount of credit and cash transactions which are mainly
related to restaurant weekly purchase of food, drinks, lunch, clothes etc.

Mentioned below there is a trail balance which is mainly based on table 1 of double entry
bookkeeping system in order to show all income and outcome in a particular month:
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. Formation of basic trial balance by applying balance off rule:
Balance off rule: It is step in which remaining balance in ledger account brought forward
in next year. It is also known as balancing off accounts in the end of an accounting period (Lub,
2016). This process is done to extract actual balance of each ledger account so to get a trial
balance which is a vital part of accounting cycle. In context with, Bishop Bake-smith restaurant
it is essential for business owner to maintain a regular check on their trial balance sheet so to
formulate a financial statement.
TRIAL BALANCE
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
As per the above mentioned trail balance it has been evaluated that, all the transaction are
recorded in correct manner because balance of account are mentioned in proper way in trail
balance. In a trail balance there is a estimated allocation of various expenses and income as per
according to principle of accounting. In addition to this, matching of trail balance sheet reflects
that accounting principles are accepted in effective and systematic manner:
Steps involved in drawing up trial balance:
After the step of positing and summarising the next process of trail balance is done by a
business organisation with a motive to identify any kind of error related to commission and
omission (Gnanapala, 2017). Mentioned below there are some certain steps which is required to
be follow by Bishop Bake-smith restaurant in order to trail balance in systematic manner:
1. Creating a proper format in which include total number of three columns namely:
particulars in which include title of account, second one reflects debit account of various
accounts whereas, third column include credit balance.
2. Name of all accounts in addition with there amount balance according to tier debit and
credit nature columns.
3. Calculation of credit and debit columns.
4. Analysation of various reason in relation to any kind of mismatch and omission amount.

TASK 2
1. Reviewing the different stages of the HR life cycle applied to Bishop Bake-smith restaurant
1. Analyse required appropriate place in an organisation or a job position as per according
to experience and qualification.
2. Short-listing them after giving them a particular problem to solve in a particular time
period.
3. Good Question:
 What is your professional strength?
 Tell me a little about yourself?
Bad Question:
 What is your religion?
 What is your pregnancy status?
4. Induction programs is mainly conducted to offer employees a detailed information and data
related to their actual roles and responsibilities in an organisation. Induction programs mainly
include information of employees rights, job profile and terms and condition that are mainly
related to employment.
5. Performance review mainly consist of various activities that are directly related to
performance review of all employees. It is done to evaluate appraisal criteria.
6. Effectively qualitative and skilled employees benefits to define objectives and targets. New
employees can contribute their portion in order to form strategies as to produce new idea.
7. Promotion is a reward technique in which employees get designated to one step up from their
recent position as to maximise their capabilities (Foster and Carver, 2018). It is important in
order to increase their level of efficiencies in order to handle tensed situations.
8. Employees quit a job position due to frustration, unhealthy and overloaded work environment
or great opp in some where else or any other reason. This can be overcome by making a effective
flow of communication with them and maintain a regular interaction also to solve their problems
in proper time manner.
9. What is your actual issue and what kind of problem you are facing which lead you to leave
the organisation?
Importance of HR Life cycle in relation to strategic talent management and overcoming
issues of staff rotation:

Strategic talent plan of management in HR cycle is very important so to recruit effective
individuals, manage then and enhance their skills in order to increase efficiency of an
organisation. In an HR cycle of talent management there are numerous functions which is
necessary to be performed as per the strategies as it will benefit a manager to manage their
employees in effective manner. As Bishop Bake-smith restaurant perform their functions in
hospitality sector it is important to increase their efficiency and capabilities so to retain them.
Assists in Increase of employee performance: With the help of talent management plan
organisation can effectively able to find most effective employees for a job which will benefit
them to reduce issues and problems in relation to performance management and employee
turnover.
Employee motivation to attain goals: With the help of strategic talent management plan
an organisation can effectively able to motivate and retain their employees for long run.
Retain top talent: Under strategic talent management a properly organised:
Numerous types of on-boarding principles helps and organisation to manage their estimation of
employee retention and decrease their overall performance management and cost of recruitment
for long run.
Continuous coverage of critical roles: With the help of strategic talent management
plan organisation can effectively able to develop a framework in order to find various measures
to identify skills of employees and assign them roles in effective manner. This will help company
to hire effective candidates as to run operations of organisation is smooth manner to avoid any
kind of work related pressure (Chung and Chung, 2018).
Recommendation: According to the above analysis it has been evaluated that various
process of HR can be strengthen and improve with the implementation of new strategies and
plans. With the improvement in skills and capabilities of employees HR plan will provide a great
help.

2. Development of performance management plan for Bishop Bake-smith restaurant
Short role play script on a topic “ An employee is not communicating well with customers”.
It is essential for an organisation to formulate a plan while having a negative impact of a
situation in mind. With the help of communication quality of plan can be effectively increased.
Mentioned below there is a script that will benefit to understand way of effective
communication:
Script One:
Discussion is not required to be undertaken:
Manager: “ You are behaving in a very rude manner with your consumer.”
Employee: Sir, due to work pressure and lot of workload there is a feeling of frustration
in my behaviour.
Manager: You are not achieving your work in given time frame.
Employee: Sir, I need bit more time to accomplish my targets in qualitative manner.
Script Second:
Discussion is not required to be undertaken:
Manager: “ As per your last five records, it reflects that you have conducted a lot of error
in your sales target in a analytical manner”.
Employee: It was my mistake, for that I am really sorry
Manager: Your last record shows that your sales performance is actually good but what
factor create an obstacle in your performance.

Employee: Thank you sir, for me this task is something new in nature and I an effectively
working on it, so to accomplish it in my best possible manner.
TASK 3
1. Identification of specific legislation that is necessary for Bishop Bake-smith restaurant to
adhere
Mentioned below there are some certain legislation that will benefit business organisations like
Bishop Bake-smith restaurant to comply: Employment Act 2002: According to this act there are a number of conditions to be
followed in appointing employees in the organisation. If these rules are violated the
employers are charged for that. Food safety Act 1990: This Act states that organisation must ensure to provide hygienic
food products for consumers. The food served to people should be of good quality.
 Live Music Act 2012: This act describes that a license is required if a live music
performance or event is organised in the organisation.
2. The way in which company, contract law and employment has potential impact on business
There are certain legislations, standards and regulations that put adverse impact of operations of
a business performing their functions in hospitality industry (Ervin, 2016). These rules and
regulation keeps on changing in a period of time which affect a company to made major
modifications in their plans and policies. It is necessary for an organisation to keep an eye on
amendments of these laws so to perform their activities in effective way in future. Amendments
in live music act, bring a change in Bishop Bake-smith restaurant to develop new strategies in
the relation to manage their licence of music events (Charterina and Barrutia, 2014). Mentioned
below there are some examples of organisation that are prosecuted in acts and regulations:
 JD Sports which perform their functions in Fashion retailer sector slapped with a fine of
about 60,000 Euro which further results in a investigation in their two branches situated
in Dudley.
 Jaguar Land Rover which is a car manufacturing unit was fined after an accident in which
one of their labour lost their leg in a car concussion.
 KFC which is a fast food restaurant was penalised with 1 million euro after a case in
which 2 of their worker injured in burn in their branch of Stockton Borough.