Hospitality Business Toolkit: Financial, HR, and Operational Analysis

This report analyzes a hospitality business toolkit, focusing on the financial performance, HR life cycle, and operational aspects of a restaurant. The report begins with an investigation into the principles of managing and monitoring financial performance, including budgeting, financial statement analysis, and key financial terms like sales and purchases. It then delves into the double-entry bookkeeping system, providing a detailed analysis of sales and purchase transactions, and the creation of a trial balance. The report further explores the stages of the HR life cycle, emphasizing recruitment, career development, and employee recognition, along with the importance of HR in talent management. A performance management plan is also included, along with an analysis of relevant legislation, the impact of regulations, and ethical principles on decision-making. Finally, the report examines different functional roles within the hospitality sector, along with an analysis of communication, monitoring, and coordination methods within a hospitality department, offering recommendations and concluding with a comprehensive overview of the key findings.

Hospitality Business
Toolkit
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1Investigation for the principles of managing and monitoring financial performance........4
P2 Double entry book keeping system of debit and credit to record sales and purchases
transaction a general ledger....................................................................................................5
Detailed analysis of purchase and sales transaction so as to compile trial balance by
using double entry system:..................................................................................................6
P3Trail balance by using balance off rule to complete ledger...............................................7
TASK 2............................................................................................................................................8
P4Stages of HR life cycle for retaining and developing talent..............................................8
P5. A performance management plan..................................................................................10
TASK 3..........................................................................................................................................11
P6 Specific legislation adhering within hospitality organizations.......................................11
P7. Reflection on potential impact of regulations, legislations and ethical principles on
decision-making process......................................................................................................12
TASK 4..........................................................................................................................................13
P8. Different functional roles within hospitality sectors......................................................13
P9. An analysis on different methods of communication, monitoring and coordination within
hospitality department of an organisation............................................................................16
Recommendations..........................................................................................................................17
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
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INTRODUCTION
Hospitality is defined as service or an act where lot of activity are being performed in
respect to entertaining guest, receiving, welcoming guest, etc. Businesses which are related to
hospitality industry render several kinds of services like lodging, catering, entertainment
services, etc. to guest so as to satisfy the customers need as well as to gain advantages in their
businesses. Present case study of this report is based on Tasty Bud espresso restaurant in
Bishops gate at London EC2N. This restaurant pauses certain speciality in rendering delicious
salads and splendid smoothes. This assignment explains about the project management plan
formative interconnection between different functions and rolls which are being perform in
hospitality sector. Apart from this different ways of communication and coordination in
businesses department is also being explained in this report.
TASK 1
P1Investigation for the principles of managing and monitoring financial performance
In order to carry out different function in smooth and effective manner it is essential for
manager of an organisation to monitor and control day to day business activity so as to increases
the proficiencies and profitability of business. Whereas on the other hand financial performance
is defined as capability to accomplish goals and target in efficient manner. In context to Tasty
Bud restaurant there are certain principals which will helps restaurant manager to monitor,
manage and control their financial performance and they are explain below (Sipe, 2013):-
Principal 1 Proper budget is require to be established: manager of Tasty Bud restaurant must
formulate effective policies and strategies so as to make proper and systematic budget which will
help to control wastages and will also helps to make optimum utilisation of resources.
Principal 2 Proper analyses of the budget must be made: it is essential for the manger of Tasty
Bud restaurant to frame budget only after analyzing the overall elements and factors of restaurant
goals and mission.
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Principal 3 Actual budget must be compared with daily based budget: In order to correct
transition and deduct errors in given time frame it is essentials for the manager of Tasty Bud
restaurant to compare daily based budget with actual budget.
Principal 4 When financial budget exceeds predetermined budget rectification needs to be done
by the manager Tasty Bud restaurant so as to improve the financial performance of the business.
A. During an accounting period income and expenditures of a business are specified
below:-
Income Expenditures
Benefits Lunch Purchases
Allowances Weekly Food ordering
Wages Home utility bills
Gifts Drinks
Therefore from the above didcuddion it can be said that certain recommendation is being
rendered to the manager of Tasty Bud restaurant that in order to monitor and control financial
performance in an effective manner its is essential for the manager to formulate necessary
financial statements in an effective manner and to maintain proper records in an balance sheet.
Apart from this other records like working capital requirements, financial ratios, and debtor trial
balance must be maintained in an effective and systematic manner as it will helps to determine
the actual position of an organisation.
Expiation of key financial terms
Sales: - It is one of the most important financial aspect as in this sales and sales transaction are
being recorded in periodic manner. Thus it will benefit to the manager of Tasty Bud restaurant in
maintaining proper record of expenses and quantity of raw material purchased.
Purchase: - It is another financial terminology in which calculation of purchase of inventory and
available current stock is being done so as to obtain good cost for example in context to Tasty
Bud restaurant is 6000 Euro and inventory purchases 9000 Euro whereas cost of product sold by
restaurant in a month is 1200 which is turn to be the actual inventory balance of the restaurant
(opening inventory + purchase - closing inventory) = cost of good sold
(6000 Euro + 9000 Euro - 1200) = 13800 Euro
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Types of cost:- There are various types cost such as capital budgeting, financial accounting, cost
accounting and many more so manager of Tasty Bud restaurant must take all these types of cost
in the consideration as as to measure the actual financial performance of business.
P2 Double entry book keeping system of debit and credit to record sales and purchases
transaction a general ledger
Double entry book keeping system is based on dual aspect while recording entry by taking
two fundamental aspects into consideration. First aspect is receiving a benefit and second is basd
on giving of befits. Apart from this in the process of double entry truncation namely two aspects
credit and debit are being recorded in proportion. There for given below is the double entry book
keeping account of Tasty Bud restaurant.
Particular Debit Credit
Cash in hand (overdraft) 107000
Petty cash expenses 5750
Cash sales 147950
Credit card sales 33500
Free issues 7500
Modular kitchen equipment 65400
Purchase food 129700
Beverage purchase 79000
Purchase return 23000
Discount receipt 2000
Credit notes 1900
Rent 28500
Utilities 4750
Functions and events 59670
Wages 45900
Debtors 7000
Till shortage 1520
375020 375020
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Detailed analysis of purchase and sales transaction so as to compile trial balance by using
double entry system:
Sales: These aspects mainly include overall balance of credit transaction and cash which give a
picture of total goods sold and the services rendered. Thus overall sale balance of Tasty Bud
restaurant mainly includes wages and other monetary term.
Purchase: - It depicts the picture of credit and cash transaction estimate which represent the
overall record of Tasty Bud restaurant and it mainly include food weekly purchase of drinks, etc.
Therefore given below is the try balance of the Tasty Bud restaurant which is related to the
above double entry book keeping system;
Particular Debit Credit Amount Transaction
Wages 164890 240000
Gifts 240000 64890
Benefits 250000 159000
Allowances 159000 250000
Weekly food ordering 178090 178090
Clothes 264150 264150
Gifts 36780 36780
House utility bills 150000 150000
Drinks 84550 84550
Lunch purchase 100320 100320
813890 813890 1627780
P3Trail balance by using balance off rule to complete ledger
Balance of rule:
It is also known as balance of account which is being maintain during the accounting
period. In order to extract a trial balance it is essential for the manager of Tasty Bud restaurant to
analyze balance of each ledger. Apart from this it is essential for the manager to control and
monitor trial balance on regular basis so as to create financial statement.
Trial Balance
Particular Debit Credit
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Bank loan 120000
Cash in hand 117000
Capital 130000
Rates 18800
Trade creditor 112000
Purchaser 120000
Sales 146000
Sundry creditor 16200
Debtors 124000
Bank loan interest 1400
Other expenses 110200
Vehicles 20200
Total 524200 524200
From the above trial balance it can be identified that all the transaction are being recorded in
a correct and systematic way. Trial balance consists of different types and expenses with in a
accurate frame work of accounting principle. Thus the total trial balance is equal which specified
that accounting principle is being maintained in a proper and systemic manner.
TASK 2
P4Stages of HR life cycle for retaining and developing talent
HR life cycle importance in relation to strategic talent management and overcoming issues
of staff rotation:-
Strategic plan of a management place a crucial role in a HR life cycle as it will help in recruiting
skilled, talented and potential applicants. In HR life cycle there are different functions which the
manager of Tasty Bud restaurant must performs in order to increase proficiencies of worker in
effective (Weinstein and Morritt, 2012).
Recruitment: - It is the vital stage and function which is performs by the manger by framing
effective strategy so as to hire. As it include identification of actual roles and responsibility so as
to accomplish job role, prepared documents for interview ad advertising of job vacant through
different website. Thus HR manger of Tasty Bud restaurant takes into consideration external
source of recruitment so as to hire talented chefs for cooking department.
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Career Development:-by developing the career of the employee through effective training
manager of Tasty Bud restaurant can easily achieve a success in regaing their worker for long
run.
Employee recognition:- It is an important stage of HR life cycle as it helps in motivating
workers to work towards achievement of organisation goal. So HR manager of Tasty Bud
restaurant recognition their employees from time to time and render appreciation good incentive
And reward for their small achievement.
Apart from this given below are the steps with the help of which HR manager carryout
recruitment process of hiring new chefs of coking department in an effective manner:
Box1: Give advertisement of chef position through website, job portals and newspapers
Box2: Rendering applicant with the related task position and matching candidate profile
according to the job vacancy and after that selecting right applucant
Box3: Interview questions
 What is your cooking style in Non-Vegetarian and Vegetarian Zone?
 What is the reason behind for you to become chef?
Box4: Conducting induction program and tarring section
Box5: Evaluating employee performance from time to time
Box6: Rendering appreciation, reward, incentives etc. for better performance.
Box7: Last is that it is essential to find out the employees need and preferences and the reason
behind why employee leave their job so as to create positive working environment.
Importance of HR life cycle for talent management
It is important for the HR manager of Tasty Bud restaurant to understand the concept of
life cycle of HR which includes recruiting, training, developing workforce within a organisation.
Thus, it would help HR manager to resolve issues related to talent acquisition and retention of
worker for a long period.
Recommendation for improving HR process
Firstly, it can be recommended that HR manager of Tasty Bud restaurant must develop
strong and appropriate policies and strategy of requirement and selection of talented worker.
Secondly, it can be recommended that HR manager of Tasty Bud restaurant must
measure the performance of an employee on daily basis by adopting different performance
appraisal technique such as 360 degree, rating system, ranking system etc.
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Lastly, it can be recommended that HR manager of Tasty Bud restaurant must adopt
continues learning program for their employees so that worker skills and knowledge level gets
enhanced.
P5. A performance management plan
In order to improve and enhance the work productivity of employees and working
organisation, a tool named as performance management plan is taken into consideration. In this
procedure, manager in Tasty Bud restaurant is required to identify the reasons which are related
with the bad performance of restaurant in market(Foster and Carver, 2018)
(Redek, 2018). Along with it, some measures are stated so that an appropriate action plan can be
formulated. After reviewing the past experiences and outcomes of company, an appropriate
strategy will be formulated that will assist in attaining of targets and futuristic goals in a clear
and defined manner.
Script 1:
Manager: I have observed that Mr. Jones is acting rude and unprofessional manner with
their subordinates and colleagues form past some days.
Employee:Yes sir, even I was also a victim of his bad temper and rude behavior due to
which I am facing some difficulty while interacting with them.
Manager: Do you have any idea about this changed behavior of Mr. Jones?
Employee: Yes sir. This is because Jones is facing high work pressure and stress due to
which he is not getting appropriate time to relax its mind. This has made him arrogant and rude,
irrespective of his actual behavior.
Manager: Do you have any measure to overcome this situation?
Employee: Yes sir, we can recruit new workers in same field so that he will feel less
pressurized while performing business activities and operations.
Manager: Okay thank you. This solution is helpful and will benefit in resolving the
problem. I will talk about it with high authorities.
Employee: welcome sir.
Script 2:
Manager: I have observed from past some days that Jones is constantly coming late for
work.
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Employee: yes sir, I have noticed that too. This is not a professional behavior.
Manager: Do you have any idea what is the reason behind this negligence.
Employee: Yes sir, Jones is facing some family issues due to which he is not capable to
came office in a timely manner.
Manager: what can we do to solve this situation?
Employee: We can take strict actions against him by cutting his 2 days’ salaries. This
will surely restrict him to come late.
Manager: I will give him notice period for one weak. If he will come late then strict
actions will be taken against him due to which he might have to face loss of pay.
Employee: I think it is the perfect idea to tackle with this situation.
TASK 3
P6 Specific legislation adhering within hospitality organizations
To perform business activities in an organized and systematic manner, it is important to
follow rules and regulations which are formulated by government. In this regard, it is vital for
manager in Tasty Bud espresso restaurant to poses appropriate information regarding laws and
regulations formulated by government. Below are mentioned some laws in this regard:
Food Act 1997: According to this act, it is an essential for a company to perform their operations
in accordance with the functions and regulations of government by offering hygienic and healthy
food to the customers(King and Lee, 2016). If customers will be given food without considering
their safety to health and life, then victim customer can claim a case against the restaurant in case
of negligence. Hence, it is vital for the manager in Tasty Bud restaurant to prepare food in their
restaurant by following all the procedures and laws.
 Liquor control Act 1987: As per this act, a company is advised and ordered to provide
beverage and drinks in their restaurants according to the norms which are formulated by
government. Any negligence in this aspect can results in heavypenalties and fines for the
concerned restaurant. As tasty bud offers salads and smoothies to their clients while
considering their health benefits. Hence, it is must for restaurant to follow this law in an
appropriate manner.
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 Health and safety work Act 1974: This Act is formulated to secure the welfare of
employees which are working in an organisation. As per this act, no employer can force
any worker to perform any activity which can threats the safety and security of worker. In
case, of Tasty Bud restaurant if some worker is feeling constant pressure to perform some
activity or operation which can impact the life and health of worker, it is the right of
worker to day no. in extreme cases employer may get punished and have to pay heavy
fines.
Impact of company law, employment law and contract law on decision making
process of a company
It is vital for a firm to perform their operations and functions in accordance with the
regulations and laws as it possess a considerable impact on the performance of workers, relation
among workforce and employers and on other operations associated with company. All these
acts and laws impacts the decision making policies and strategies of a company. Hence, it is
essential for a firm to manage and organize their activities in a proper manner so that following
all the laws and rules will result in forming an advantageous situation for the company(Mejia and
Torres, 2018).
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P7. Reflection on potential impact of regulations, legislations and ethical principles on decision-
making process
In order to acquire appropriate knowledge and information of government laws, I have analyzed
that it is vital to follow certain regulations and rules so that I can prevent myself form perusing
any illegal activities while operating business activities& operations. As I am manager in Tasty
Bud, I need to implement Acts like Food Act 1997 and liquor Act 1987. This will help me in
performing business operations in a systematic and ethicalmanner(Nickson, 2013). In realtion
with this appropriate analysis of market is carried out by me so that I can get appropriate
knowledge. Have acknowledged that those firms which do not obey these rules have payed
heavy penalities. Some of these cases are stated beneath:
Companies Act or Regulation Result Fine
Smith restaurant Food Act 1997 Guilty £4,000,000.00
Greenfingers Ltd. Construction
Regulation 2005
Guilty £30,000.00
Toby jones and
company
Health and Safety At
Work Act 1974
Guilty £515.00
Daniel Healthcare Ltd. Health and Safety At
Work Act 1974
Guilty £100,000.00
TASK 4
P8. Different functional roles within hospitality sectors
To manage business operations in a desired manner, it is essential for a company to carry
out their responsibilities and duties in an appropriate manner. To achieve this, every firm is
require to prepare an organisational chart that helps in defining the role of every employee
in a proper manner. This organisational chart will benefit Tasty Bud restaurant in defining
specific duties to employees operating in different departmental units like finance, R&D,
HR. In this context, some roles associated with hospitality industry are mentioned below:
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