Hospitality Business Toolkit Report for Family Meet Restaurant

This report provides a comprehensive analysis of Family Meet, a family restaurant located in Bishops gate, London. The report delves into various aspects of hospitality business management, including the principles of managing and monitoring financial performance. It explores the application of double-entry bookkeeping to analyze sales and purchase transactions, culminating in the preparation of a basic trial balance. Furthermore, the report reviews the HR lifecycle stages applied to Family Meet, develops a performance management plan, and identifies relevant legislation and laws impacting the business. The report also examines the interrelation between different functions and roles within the hospitality sector, as well as methods of communication and coordination. The report covers critical aspects of managing a hospitality business, providing insights into financial management, HR practices, and legal compliance.

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Investigation of different principles of managing and monitoring financial performance.....1
2. Apply double entry book keeping system of debits and credits to analyse sales and purchase
transactions in ledger...................................................................................................................3
3. Preparation of basic trial balance by using balance off rule...................................................4
TASK 2............................................................................................................................................6
1. Review various stages of HR life cycle applied to Family Meet............................................6
2. Develop performance management plan for Family Meet.....................................................8
TASK 3............................................................................................................................................9
1. Identify specific legislations that Family Meet has to comply and adhere to.........................9
2. Examples related with how company, employment and contract law 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, ordination and monitoring applied within specific
department of the organisation..................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality industry refers to broad group of businesses which provides vast range of
services to their customers. Their focus is to enhance customers satisfaction by giving them
specific experiences (Anderson and et. al, 2017). This industry depends on disposable income
and availability of leisure time. In this report, a restaurant Family Meet has been opened at
Bishops gate in London EC2N. It is a family restaurant which aims at providing healthy salads
with blended juices and smoothies. This file includes management and monitoring of financial
performance, book keeping system and produce basic trial balance. Apart from this, HR life
cycle is applied, performance management is analysed. Furthermore, different legislations and
laws are identified. At last different functional roles and methods of communication,
coordination are identified.
TASK 1
1. Investigation of different principles of managing and monitoring financial performance
Family Meet is a new restaurant which is started London. It has turned into flourishing
enterprise on Bishops gate. Smoothies and healthy salads which are blended with juices are
provided to their customers. Principles refers to fundamental proposition or truth which suffice
as foundation for system of behaviour. They helps to enhance performance of organisation.
Financial performance is defined as ability and efficiency of organisation by which they can
complete specific task so that they can achieve their organisational goals and objectives. In

context of Family Meet, they are opting for different principles for managing and monitoring
their financial performance, they are mentioned below:
Arrangement of finance: It is essential for Family Meet to manage and structure their funds and
finance sources effectively. This will aid them to conduct their functionalities and operations
with high high accuracy and efficiency. Their financial performance will be declined if excessive
financing is carried out through usage of debts. For this, they need to maintain and supervise
financial performance in systematic manner.
Management of expenditure: Financial performance deals with profitability conditions of
organisation. To achieve this, organisation must ensure that their disbursement and optimisation
of funds managed. As Family Meet is new restaurant, they need to minimise their cost so that
they can survive within market. This aids them to analyse whether they are at profit or loss
(Bowie and et. al, 2016).
Finding risk factors: Family Meet has opted to implement this principle so that they can have
effective funds in future. They need to analyse relevant factors which can have affect on their
financial status. This will assist them to gain stable growth.
Above mentioned principles will aid Family Meet restaurant in management and
monitoring of financial performance. This will provide them effective guidelines by which they
can organise and maintain their funds with respect to risks which they can have in future.
A. Over one calender month, incomes and expenditures of business are as:
Incomings Outgoings
Wages Weekly food shopping
Gifts Clothes
Benefits Gifts, drinks,
Allowances Household utility bills, lunch purchases
B. Explanation of some peculiar terms:
Sales: They refers to activities which are incidental to number of goods which are sold at
specific moment of time. In context of restaurant, it can be termed as number of services (which
include food and beverages) which are delivered to customers. It is a total income which is
attained by organisation in particular time. In Family Meet restaurant, sales is achieved by

providing their customers with healthy salad which is blended with juices and smoothies (Bruce
and Stephens, 2017).
Purchase: It is referred to as organisation or business which is endeavouring to attain
services or goods for accomplishment of their goals. It is money which is paid by Family Meet
for purchasing raw materials by which they can serve their customers with food and beverages.
Types of cost: There are different costs which occur when business is executing. It refers
to aggregation of different expenses which occur within organisation while they are offering
services. Certain costs which are linked with Family Meet restaurant are mentioned below:
 Fixed cost: This refers to cost or expenses which do not alter with quantity of services
which are being served by Family Meet restaurant. Such kind of cost includes insurance,
depreciation and rent
 Variable cost: This refers to expenses or cost which vary with different items which are
being produced by organisation. Such kind of cost includes marketing expenditure, food,
salaries, etc.
 Semi variable cost: These expenses refer to costs which are partly variable and partly
fixed (Charterina and Barrutia, 2014). They includes staffing expenses, facility rent,
monetary benefits, etc.
2. Apply double entry book keeping system of debits and credits to analyse sales and purchase
transactions in ledger.
Double entry book keeping system: As per this system, every transactions which are
being carried out are canned in nominal two accounts. It also involves that within all
transactions, amount which is entered in debit is equal to credits amount. Family Meet should
adopt this method of accounting procedures so that they can effectively acknowledge their
profits and expenses. Trial balance is formulated using this system. It is presented below:
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
Total 37502 37502
Cash in hand is treated as an overdraft. Functions and events are taken as incomes so that
total figures which are shown in trial balance can be matched (Chung and Chung, 2018).
Trial balance based upon above table is shown below. In this double bookkeeping system
is implemented which will indicate inbound and expenditure for specific month. All these
amounts which are are shown below are hypothetical.
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. Preparation of basic trial balance by using balance off rule.
Balance off rule: When accounting year comes to an end, all accounts of business
entities are closed and accounts which are not obstructed they are taken forward to next year.
This is known as balancing off. It aims at analysing information which is present within ledgers
and journals (Ervin, 2016). It is done to find out whether they are correct or not. It is crucial for
Family Meet restaurant to balance off all accounts so that they can analyse their performance at
the end of accounting year.
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
Trial balance of organisation is shown in above table. This balance is matched at end of
year to acknowledge that information which was published in different journals and ledgers is
authenticated and relevant (Foster and Carver, M., 2018).
Steps utilized in drawing of trial balance:
Trial balance refers to list of all ledger accounts (which include both capital and revenue)
which are present in ledger of business. It is statement which is formed when ledgers are closed.
Purpose of trial balance is to identify figures which were formerly recorded are suitable or not.
Family Meet restaurant needs to follow certain steps for forming trail balance. They are
mentioned below:
 Closing balance, cash book and bank book is required when ledger accounts are closed.
Every ledger account should be balanced (sum of credit entries and sum of debit entries).
 Prepare three column worksheet which includes account name, balances of debit and
credit.
 Appropriately fill account name and balance of this accounts in debit or credit column
respectively.
 Then compute total credit column and debit column. These totals must be similar.
 Close the trial balance when they are similar. If any difference occur between them then
identify errors and rectify them (Gnanapala, 2017).
TASK 2
1. Review various stages of HR life cycle applied to Family Meet.
HR life cycle is concerned with different stages through which employees undergoes and
role of HR at particular stage. There are five stages, they are mentioned below:
Recruitment: This refers to recruiting right person, this has signifiant impact on
organisation in terms of growth, productivity and turnover. Family Meet restaurant needs
evaluate their requirements with respect to vacancies, expectations and strategies for attracting
best (Higgins-Desbiolles, Moskwa and Wijesinghe, 2017).

Education: In Family Meet restaurant, this process is started when new person join their
organisation. It is necessary that new employee must be aware of their responsibilities, role and
expectations of organisation. HR of Family Meet needs to communicate organisational culture
and values, train their employees and introduce them to colleagues.
Motivation: In initial faces, training rate is high due to lack of effective motivation. In
this case, HR of Family Meet motivate new employees by engaging them, performing at higher
level and appreciating their contribution by which business can become successful.
Evaluation: Within Family Meet restaurant, supervisor measures and evaluates the
performance of employee. Based on that they are given metrics which aids them to identify
whether they are apt for particular job or not. Apart from this, training and development is
offered to them which will assist them to achieve their goals.
Celebration: This stage gives possibility to reenergize employees and appreciate them
for their contribution in particular task. HR of Family Meet gives unique benefits like extra paid
time off, gift cards and others to their employees (Lub and et. al, 2016).
Box 1 They can be placed at appropriate place depending upon their experience and
qualification.
Box 2 Candidates who have desired skill set and experience can be interviewed.
Box 3 Good questions are:
 What are your strengths and weaknesses?
 Why we should hire you?
Bad questions are:
 Are you single?
 What is the worst thing you have done in previous job?
Box 4. Induction program is organised within organisation so that new employees can be given
information related to responsibilities which they have to perform. This is done to make
employees aware about working of organisation and what they have to do. It covers detailed
information about role, their rights, terms and conditions related with employment.
Box 5. Performance review include activities which are linked with performance of employees.
It is carried out to determine incentives and appraisal which can be given to employees.

Box 6. Business can reach their objectives and goals within stipulated time when they skilled and
developed. New employee can gain knowledge with respect to latest trends which can aid them.
Box 7. Promotion is defined as up-gradation of employees in other profile. It is important as by
this employees will be encouraged and improve their efficiency to work harder.
Box 8. Employees leave job due to worst working conditions, dissatisfaction, conflicts or others.
They can be prevented by providing them with effective environment and conduct different
interaction sessions so that their problems can be addressed.
Box 9. What is the reason behind this? Did you feel that work you were doing here is cordinated
with your personal interests and goals.
Importance of HR Life cycle with respect to strategic talent management and overcoming
issues of staff retention:
Within HR cycle strategic talent management plays vital role to recruit people, their
management and their development. It plays relevant role in strategies formulation as it will help
them maintain their employees. Family Meet need to manage their employees and train them
depending on tastes and preferences of their customers (Moeti, 2016). Importance with respect to
talent management and issues related with staff retention are mentioned below:
Aids in alterations of employee performance: Talent management aids HR of Family
Meet to evaluate appropriate employees for particular task. It also aids them to retain best
employees within organisation.
Employee motivation to attain goals: Employees are motivated within Family Meet
restaurant either by giving them rewards or appreciating them for their effort. This will help
organisation in their retention.
Recommendation: HR process must be enhanced, for they must adopt new strategies by which
they improve their planning within HR life cycle. Apart from this, Family Meet need to analyse
the market and current trends. This will aid HR to provide employees with specific training and
development programs.
2. Develop performance management plan for Family Meet.
Short role play Script on the topic “ An employee has been rude to a colleague”:
Management performance plan must be well planned. Negative impact of these plan must
be evaluated after the plan has been formulated. When communication is effective, then quality

of plan will be enhanced. A script is provided below which will aid to understand way of
communication:
Script One:
This kind of discussion must not occur within organisation:
Manager: “ Is this the way to behave with your colleague?”
Employee: “Sir, my intention was not to..”
Manager: “Just listen to me whatever may be the reason you do not need to argue or give
explanation. You should ensure that if this will happen again then you have to face its
replications.”
Employee: “Okay sir.”
Script Second:
This discussion must be considered:
Manager: “What is the reason behind this behaviour?”
Employee: “I apologize for my behaviour, it was mine mistake”.
Manager: “You need to ensure that again such kind of fluctuation do not occur within
your behaviour.”
Employee: “ Sir, due to work load this might have happened but I will make sure that I
will build up healthy relationship with my colleague.”
TASK 3
1. Identify specific legislations that Family Meet has to comply and adhere to.
There are different legislations which Family Meet has to comply for effective working,
they are shown below:
 Food Safety Act, 1990: This act is an act of Parliament of UK which states that food
must treated in managed and controlled way which is intended for consumption of
human. Family Meet restaurant has opted to follow this act, it includes that food which is
being served is as per quality demands (Schwager, Decker and Kaltenegger, 2016).
 Employment Act 2002: This act regulates working policies of employees, terms and
conditions of employment contract with respect to hospitality sector. It also includes rules
related with paternity, maternity and adoption leaves and their pays.

 National Minimum Wage Act,1998: This act has stated that individuals have certain
pay based on per hour basis and their ages. Family Meet has adopted this law to ensure
that conflicts do not arise due to these reasons.
2. Examples related with how company, employment and contract law has potential impact on
business.
There are different legislations and regulations which have negative impact on
organisations which operate within hospitality sector. When there is any kind of alteration within
legislation and regulation, functionalities of business also needs to be changed. This done to
ensure that organisation do not fall into any kind of trouble within future (Singh, 2015). Some
examples are shown below which describes the organisations who have lend into problems due
to violation of laws:
1. Wilko, household goods giant was fined £2.2million when 20 year old employee was
paralysed in event where paint tins fell on her.
2. Car manufacturer Jaguar Land Rover was fined when an employee lost leg when car
bump on the production line.
3. When 2 employees faced burn injuries within KFC at Stockton Borough branches, they
were penalised £1 million.
4. LSER and Wettons were fined £2.5m and £1.1m respectively in prosecution which was
brought by ORR which caused death of a cleaner.
5. Warburtons was penalised £1.9m when they violated Provision and use of work
equipment regulations act 1998. Employees arm was trapped within machine for around
20 minutes.
Such kind of complexities occur within organisation and create a relevant impact on their
decision-making process. With respect to hospitality industry there are certain changes in
regulations which will have significant impact on objectives of organisation and this will lead to
alterations in decisions which are made within organisation (Anderson and et. al, 2017).
TASK 4
1. Interrelation between different functions and roles within hospitality sector.
 Organisational Structure of Royale Restaurant: