Hospitality Business Toolkit Report: Finance, HR, Legal and Operations

This report provides a comprehensive analysis of key aspects within the hospitality industry, using the hypothetical restaurant Food & Fusion as a case study. It delves into financial performance management, including principles for monitoring finances, cost optimization, and risk assessment, alongside practical examples of accounting transactions and the double-entry bookkeeping system. The report further explores the HR life cycle, emphasizing its importance in talent management, employee motivation, and retention. It includes a performance management plan with a sample script for employee communication. Additionally, the report identifies and discusses relevant legislation, such as the Equality Act 2010, the Employment Act 2002, and health and safety regulations. Finally, it examines the organizational structure of Food & Fusion, focusing on communication methods and coordination across different departments to improve overall operational efficiency.

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Principles of managing & monitoring financial performance.................................................1
2. Double entry book keeping system..........................................................................................3
3. Sales & Purchase transactions to compile a Trial balance.......................................................4
TASK 2............................................................................................................................................5
1. Different stages of the HR life cycle........................................................................................6
2. Development of performance management plan.....................................................................7
TASK 3............................................................................................................................................8
1. Identification of specific legislations.......................................................................................8
TASK 4............................................................................................................................................9
1 . Interrelation among different functions..................................................................................9
Organisational Structure of “ Food & Fusion ”.............................................................................10
2.Methods of communication, ordination and monitoring applied within specific department 12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Hospitality is defined as the connection among a guest & a host in order to provide them
effective services as a result demand of consumers can be satisfy. Hotels are focusing to deliver
the best quality of services so that wants of guest can be fulfilled and provide help to increase the
reputation as well as market share. To better understand this concept Food & Fusion restaurant
has been chosen which is newly established in London. In this report there are following topics
are covered such as: investigate how to manage finance & record transactions to minimize costs
within hospitality sector, assess how to manage the HR life cycle, potential impact of legal &
ethical consideration. Apart from this it also discuss about the importance of coordinating &
integrating various functions of departments.
TASK 1
1. Principles of managing & monitoring financial performance
For the management it is important to follow the guidelines & principles so that damage
can be minimize. Principles are the set of essential regulations and compliances which are
helpful to increase the work quality. The internal manager of organisation is responsible to
follow specified rules in order to manage financial reports which is beneficial for overall
performance evaluation. Financial performance reflects the effectiveness & capabilities of a
corporation which is helpful to accomplish predetermined objectives. Food and Fusion can
follow different principles in order to monitor financial performance.
Constitution of finance: To manage the finance is necessary for the manager of
restaurants by using effective strategies which are helpful to attain constitution of finance. With
the help of appropriate funding overall performance can be improve. So it is essential to manage
& control the financial performance with the help of adaption of relevant principles which is
associated to constitution of finance (Wilson, 2016).
Manage expenditures & optimise cost: To minimize the unnecessary cost is the need of
business so that profits can be maximize. With the help of cost analysis technique management
can control the additional cost. It is essential for the manager of Food & Fusion to effectively
prepare the budget so that profits can be increase and organisation can perform for a long run and
gain the benefit of sustainability.
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Determine risky factors: The environment is dynamic which involves huge risk so it is
important for the organisations like hotels and restaurant to identify risk factors so that chances
of losses can be minimize. Food & Fusion is newly established restaurant so it is essential for it
to analyse the risk factors because taste, demand, food habits and preferences of consumers are
changing time to time. If food products does not produce as per the requirements of persons than
sales and profits can be reduce which affect the financial performance of corporation.
These principles are beneficial for the growth of Food & Fusion restaurant and it is
helpful to manage financial performance as a result business can expand (Townsend and Baker,
2014).
A. During an accounting period incomes & expenses of business are as follows:
Incomings Outgoings
Wages Lunch purchases
Gifts Household utility bills
Benefits Clothes
Allowances Weekly food shopping
Gifts
Drinks
B. Explanation of particular terms:
Cost: It is an important element of the manufacturing process and to purchase raw
material it have to pay by the Food & Fusion to its suppliers of raw material so that final product
can be prepare. To reduce the cost concept of economic of scale can be use so that profits can be
maximize.
Types of cost:
Variable cost: It is that cost which has change with the changes of volume of production
and does not remain same over the period of time. As an example: direct material cost, shipping
csot etc.
Fixed cost: This cost does not change over the period of time and it remain same. For an
example: rent, lease, insurance premium etc.
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Semi variable cost: This cost involves the featues of fixed as well as variable cost. As an
example, electricity bill of manuafcturing firm because it includes both fixed amount & number
of kilowat hours of electricity consumerd during the production process.
Sales: The ultimate goal of comapny is to sale the product which has manuafctured and it
involves transfer of ownership in the form of consideration.
Purchase: This is the process of acquiring goods & services for a particular purpose by
paying some amount of money. Food & Fusion restaurant purchase raw material to fulfil the
need of production process.
2. Double entry book keeping system
Double entry book keeping system: In this system all business transactions are recorded
under two accounts. It is require that the amount which has recorded in debit side should equal to
the amount recorded in credit side. As an instance, an organisation borrow $20000 from a
financial institutions than cash account will increase by $20000 and liability of corporation will
increase with the same amount (Stumpf and Califf, 2018).
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3. Sales & Purchase transactions to compile a Trial balance
Sales: The process of buying the products by customers and selling of commodity
through seller on the basis of consideration. In this process two parties are involve that is buyer
and seller.
Purchase: The process of acquiring products for a particular purpose by paying specific
amount of money. Food & Fusion restaurant purchase raw material to fulfil the need of
production process.
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4 Formulation of trial balance using balance off rule:
Balance off rule: As per this rule the balance of ledger can be carry forward to the next
year. It is done in order to extract the actual balance which has recorded under trail balance
during an accounting year. The finance manager of Food & Fusion can use this rule so that errors
in financial statements can be identify (Smith and Puczkó, 2014).
Trial Balance
There are various steps which are involve to prepare trail balance
Prepare a worksheet of three columns: This is the first stage of making trail balance
which includes 3 columns, 1 for account titles & remaining two columns for credit & debit.
Fill in the account titles & record its balance in appropriate credit and debit columns.
Total the debit and credit columns: Under this specific stage total of both columns are
consider which is debit & credit.
Compare the column totals: This is the final step of trial balance and in this there would
be comparison of amounts of both columns which are debit and credit.
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TASK 2
1. Different stages of the HR life cycle
The different stages of HR cycle is helpful for the manager of Food & Fusion so that
organisation can recruit most suitable individuals.
HR life cycle importance in contect to strategic talent management & overcoming issues to
staff rotation
To manage the emloyees HR life cycle plays an important role and it is a combination of
five stages which involves recruitmnet, motivation, education, evaluation and celebration. These
five stages is very helpful to manage & run the business operations of Food and Fusion. The
importance of HR life cycle is describe below:
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Increase employee performance: HR life cycle is helpful to improve the performance of
workers becasue it focuses to conduct tarining progrmme so that skills and knowldge of staffs
can be enhanced. As a result employees can perform as per the desire of Food & Fusion.
Employees motivation to attain goals: The human resource of organisation is focuses to
achive the goals and motivates the employees of Food & Fusion. To encourage the workers they
are get rewareded and it motivates the staffs to perform betterr so that they can get the benefit of
it. The reward in the form of monetary and non monetary both. As a result targets can be
accomplish as per the need of corporation.
Retain top talent: To retain top talent is essential for the organisation so that business
can grow and get success. HR life cycle involves proper evaluation of workers which is helpful
to maintain more suitable and talented candidates. As a result it is helpful in assigning right task
as per the talent. Food & Fusion restaurant always emphasis to retain most desirable candidates
who can work according to the need (Shin and et. al., 2016).
Continuous coverage of critical roles: HR life cycle covers the performance of those
individuals whose responsibilities are critical. It is helpul in better evaluation of staffs and
comapre the actual performance with the standard performance. Because of critical task assigned
employees perform its roles in a effective way.
Recommendation: These strategies are helpful to improve the HR process which is
useful to manage & control workforce to accomplish the objectives of Food & Fusion. As a
result staffs can perform effectively and needs of consumers can be satisfy.
2. Development of performance management plan
The performance management plan is an ongoing process of communication among
employer and employee which occurs throughout the year so that corporation can achieve its
targets. Food & Fusion can develop an effective performance management plan so that workers
can pergola better and accomplish the targets of organisation.
Short script on topic “An employee is not communicating well with customer”.
It has been seen that fluent and frequent communication is helpful to proceed with plans
which is beneficial to accomplish the goals of corporation. With the help of management
performance plan Food & Fusion can measure and evaluate the performance of workers as a
result staffs will work as per the need.
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Script one:
Manager does not adopt this method of communication:
Manager: You do not know, how you should communicate with consumers.
Staff: Sir, because of workload & consumer argument many times I loose my patience.
Manager: If you does not change your attitude than you get fired next time.
Staff: Sorry sir,
Second Script:
This is the manner manager should talk to its workers.
Manager: You have to improve your communication skills because you are not
comfortable while talking with consumers.
Staff: Sir due to high workload & sales increment some times my way of communication
style has been change.
Manager: You have potential to improve your communication skill and it will groom
your overall personality. As a result you can easily communicate with consumers and resolve
their queries.
Staff: I assure you that I will improve my communication skills and build strong
relationship with consumers (Ervin, 2016).
TASK 3
1. Identification of specific legislations
Equality Act 2010,
According to Equality Act 2010, all people should be treated equally in the workplace
and in wider society. This act is easy to understand in complex situations and strengthen them at
workplace and in the society. It aims to protects people from any discrimination in the
organization.
Food & Fusion follows this act and strengthens the confidence of all people working in the
organization as all are treated equally, no discrimination is done between people at workplace.
Employment Act, 2002
Employment Act, 2002 introduced new provisions related to paternal, maternal, adoption
leaves and pay for the individual employee. This act also provides the statutory procedures made
in relation to employment disputes.
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Food & Fusion has adopted this act and this act helps in building the interest of the workers by
retaining them through providing them the employment benefits which they deserve.
Health and safety regulation 1981
According to this act the employers of an organization should provide safety tool,
measure to its employees in case of accident or injury to health. All organizations should keep
many first aid boxes in each departments and should use them whenever required.
Food & Fusion provides safety measures to protect the health of its employees and this improves
the employees morale towards organization.
Human right act,1981
This act provides basic rights and freedom which every individual of a country is
entitled. This act provides a detail note on the fundamental rights and freedom which every
organizations must provide to its workers (Chung and Chung, 2018).
Food & Fusion works by considering the guidelines provided them and they amend them to
retain the workers by providing them freedom and rights at workplace.
2. Way in which organisation, employment & contract law has potential impact on business
Now a days organisations have to follow various rules and regulations which are imposed
by government. The authorities introduced different policies and standards which are needed to
be follow by the hotel, restaurant and cafe in order to satisfy the needs of consumers. By
maintaining distinct laws the risk factor can be minimize. So the management of Food & Fusion,
it is essential to perform their its task and roles as per within the limits of regulations so that
business can be grow, sales can increase as well as brand image will improve.
If company law does not followed than organisation is liable to pay fines and penalties.
As per the British Law 2009, information related to age, name, background and old experience
should be accurate which is beneficial for the management to take effective decisions as per the
requirement. For the workers it is essential to follow the rules of contract law and perform their
works as per the need of Food & Fusion and if they deny than fine has been imposed by the
organisation on employees. As well as it is necessary for the management to pay the salaries to
the workers as per their post.
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