Comprehensive Financial and HR Analysis for Yummy Tummy Restaurant

This report provides a comprehensive analysis of the financial and human resource aspects of a hospitality business, specifically focusing on the 'Yummy Tummy' restaurant. It begins with an introduction to financial transactions, types of documents used, and the principles of double-entry bookkeeping, including debits, credits, and the creation of trial balances. The report then delves into cost analysis, evaluating how different types of costs influence financial performance. Furthermore, it critically assesses the role of financial management in achieving business growth. The report also explores issues in talent acquisition and retention, specific legislation relevant to the hospitality sector (such as food and liquor control acts), and the impact of employment contracts on organizational decision-making. An evaluation of the HR lifecycle and its importance in supporting specific job roles is also included. Finally, it examines different functional roles, communication methods, and their interrelation within the hospitality sector, offering recommendations and conclusions based on the analysis.

HBT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
TASK 1............................................................................................................................................4
Provide an introduction to financial transactions of hospitality business by types of
documents...................................................................................................................................4
Principles of double entry bookkeeping system by debits and credits by personal income and
expenditure..................................................................................................................................5
Demonstrate the need of an accounting report by trial balance using sample data and statistics.
.....................................................................................................................................................8
Analyse types of cost and how it can influence financial performance by using accounting
principles...................................................................................................................................10
Critically evaluate the role of financial management in achieving growth in business. ..........11
TASK 2 and 3................................................................................................................................11
Overview of issues in talent acquisition and retention in food and beverage industry.............11
Specific legislation for hospitality sector and reflects the company's employment contract and
impact on organisational decision making................................................................................12
Evaluate each aspect of HR life cycle and their importance in supporting an specific job role.
...................................................................................................................................................12
TASK 4..........................................................................................................................................14
Different functional roles in hospitality sector and their interrelation......................................14
Different communication methods............................................................................................15
Analysis of different communication method in specific department......................................15
Role of communication method to integrate different departments..........................................15
Recommendations.....................................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Hospitality is one of the broad category in which many fields and services includes in
which lodging, event planning, food and beverages, theme park, cruise, transportation and many
more fields include in it. All of these factors concerned with customer satisfaction and mainly
concerned with giving best attributes to the target market to enlarge business opportunities. This
report is based on the main sector of industry in which yummy tummy restaurant which aimed to
expand its market share that is situated in London UK and also deals in healthy salads and range

of blended juices and smoothies. This report is based on the financial stability that are require at
time of expand its business. In addition to reach at desirable outcomes organisation have to
acquire new talent and manpower and role of legislations in food and beverages sector that plays
an important role to reach at desirable outcomes. On other hand role and importance of
integration of various factors to each other in hospitality sector.
MAIN BODY
TASK 1
Provide an introduction to financial transactions of hospitality business by types of documents.
For every business requires an internal and external system of accountability that
provides accountability by keeping record of monetary inflows of sales revenue and outflows by
operating business. It provides necessary information that are obligatory to evaluate current and
past operations of business (Biber and et.al ., 2017.). It helps in record and maintains required
data and statistics by evaluating asset resources, credit liabilities and equities with ownership in
hospitality sector. When start a new business or expand in into new sphere organisation have to
collect or grab some accounting data with help of source documents that are basis of physical in
which transaction of business should be recorded (Caliandro and Gandini, 2016.). It works as as
evidence when auditors examine or review of position of the company with help of financial
statements. The necessary documents contains some necessary information in which detail
transactions of business, date and time of transactions, amount in which deals should be fixed
and an authorised signature.
There are various relevant documents that helps in achieve organisational goals and objectives
that are as follows:
Bank statements:
In bank statement consist of no. of adjustments about the company and their cash
transactions that are associated with the bank and shows the financial position of firm.
Sales order:
This is one of the important document that coupled with bill of lading or packaging list
and helps in invoice consumers in return of sales transactions. It is one of significant legal paper
which gives important insights and information to reach at desirable outcomes.
Supplier invoice:

this is one of the important document which gives support of issuance of cash and check
or electronic delivery or payments to suppliers. It also supports recordation of expenses, fixed
assets and inventory items that are useful for evaluation (Dahlén and Larsson, 2014.).
Principles of double entry bookkeeping system by debits and credits by personal income and
expenditure.
Bookkeeping is an tool to record financial transactions and its an main attribute and
process of accounting in an business (Doherty, Meehan and Richards, 2015). In that main
transactions includes sales, purchase and payments by an individual or group of individuals.
There are some key principles of bookkeeping that are as follows:
the basic principle of bookkeeping is that it has always two entries for every transaction.
One entry should be record as credit entry and another as a debit entry. The entries should be
display in T account.

Debit and credit balance:
A debit is an left side of account and its shows the balance with credit is on left side of an
account.

Demonstrate the need of an accounting report by trial balance using sample data and statistics.
Trail balance is an list of all general ledger accounts both revenue and capital that
contained in ledger. In which name of nominal ledger should be contained. In each nominal
ledger account debit and credit balance.
Steps to prepare trial balance:
To prepare an trial balance for that closing balance of ledger account, cash book and bank
book are very obligatory. To reach at results organisation have to firstly account should be
balance. After that three column worksheet in which one column should be account name and
other columns in debit and credit balances. After that fill account name and then balance of debit

and credit should be equalise and has to be error free. Then results should be compare with their
totals and if differences should be appear then errors should be rectify (.Hanrahan ed., 2017.).
Purpose of trial balance:
the main purpose of trial balance to prove that the value of debit and credit should be
equal in balances. In case debit not equal to credit column that shows an error in ledger which
can be rectify (Häusler, 2017).
Hence in case of yummy tummy restaurant trial balance is one of the important tool that give
important insights and knowledge to check the viability of business with loop falls exist in
business to get desirable outcomes. So bookkeeping, trial balance and debit and credit balances
are very important for yummy tummy to get results with accuracy.
Analyse types of cost and how it can influence financial performance by using accounting
principles.
To start an business organisation occurs different kinds of cost while expand market
share or enlarge business opportunities. In order to there are various costs which are basis of
hospitality sector that are as follows:
High fixed cost:
There are various spheres in which hospitality sector incurs huge cost so it would be
difficult for them to save cost. In hospitality sector the cost of labour high due to requirements
of talented staff or manpower and for save cost of operation yummy tummy restaurant track the
data and statistics to avoid unnecessary high labour cost. In hospitality sector initially occurs
construction cost to build and after that maintenance. In fixed cost labour and benefits, supplies,
contract cost and utility cost, water some other factors that directly part of fixed cost.
variable cost:
In variable cost consist of cost of hotel occupancy and volume of business. As business
volume or occupancy increases simultaneously variable cost enhances and vice versa. The main
sphere in variable cost in yummy tummy while it aimed to expand its market share by launching
some healthy range of food and beverages. Examples of variable cost in which guest room
amenities, flower arrangements, laundry operations, entertainment and transportation are major
attributes.
Cost of capital:

In accounting the cost of capital are funds of company or from point of view of visitor
required return for portfolio of an existing firm. In case of hospitality sector the cost of capital is
higher in comparison to other industries. In case of yummy tummy they require huge cost of
capital for expand their business (Jauhari ed., 2014.).
All these cost helps in manage all activities and procedures to reach at desirable outcomes and
goals because it gives important insights and knowledge about viability of an firm and
fluctuations in that cost directly impacts on performance of business.
Recording of transactions in accurate manner plays very important role to bring out results that
are clearly understandable and vital enough for whole organisation. With the help of going
concern principle of accounting in which company can exist for long time to attain goals and
objectives by evaluating cost and other major attributes that help in attain organisational goals
and objectives.
Critically evaluate the role of financial management in achieving growth in business.
Financial management plays critical role in financial success of business. In order to
financial management in which key component to reach at desirable goals and objectives. But
sometimes financial management takes huge cost to attain goals and objectives (Lervik and
Sutherland, 2017). But each and every phrase of organisation and to attain goals and objectives
helps to yummy and tummy. Hence cost and role of financial management for organisation is
very important and it for yummy an tummy have to evaluate each and every aspect.
TASK 2 and 3
Overview of issues in talent acquisition and retention in food and beverage industry.
In an industry various issues or concerns arises that proves hazardous for organisation to
reach at desirable outcomes and goals. In that scenario organisation faces issue of talent
acquisition and retention that should be arises due to many reasons that are as follows:
High cost of discrimination at workplace:
Food and beverages industry facing the problem of employee retention and talent
acquisition concern due to the low wage rate and if salaries and wages are based on productivity
of employees. In case of yummy tummy restaurant to launch a series of healthy food they fix
some sort of salary on fix bases and other as variable.
Workplace diversity and inclusion:

Diversity at workplace and inclusion is one of the most necessity for hospitality industry
because organisation have to changes in their work and serving style with taste and preferences
according to global demographics so that they can reach at vital scale (Liu and Pennington-Gray,
2015.). But due to frequent diversity in workplaces and working style gives dissatisfaction to
employees and they are not able to give their best and enhances their dissatisfaction level which
gives hazardous effect to organisation.
Relation with factors:
Talent acquisition and retention in job role for HR manager by giving equal pay
evaluating their performance, by giving compensation and wages. Further maintaining an
positive work culture helps them to retain and to acquire best candidate by fair recruitment
system.
Specific legislation for hospitality sector and reflects the company's employment contract and
impact on organisational decision making.
In every business sphere some rules and regulations should be impact in both positive and
negative manner. In case of yummy tummy they follow some legislations for smooth functioning
of organisation.
Food act, 1997:
This is an important legislation which gives guidelines and direction for food and
beverage industry and way of preparing food, their important ingredients and perfect quantity to
get desirable results (Moratis, Melissen and Idowu, 2018.). It also helpful in adopting health
and clean measures to keep workplace safe and secure. It is one of the most useful law and
regulation for hotels, restaurants to keep work environment safe and secure.
Liquor control act, 1978:
it is one of the important regulation which give various aspects by controlling sales and
consumption criteria for alcohol and by eliminating wastages in production process. This gives
important insights and knowledge to yummy tummy about quantity of alcohol in food and
beverages of industry.
Employee contract:
It is an contract in employee and employer that use in various aspects or situation to get
best results out of them. To get desirable outcomes organisation have to regulate different
aspects.

Evaluate each aspect of HR life cycle and their importance in supporting an specific job role.
HR life cycle is an important phrase to recruit best candidate out of large no. of people to
reach at desirable outcomes and goals.
Box 1:
In that phrase of HR life cycle organisation revels or publish about jobs for different job
profiles by various modes of information (Richey, 2016).
Box 2:
In that stage of HR life cycle an individual should be selected by evaluating each and
every aspect according to requirement of an organisation related to the candidate.
Box 3:
At the time of interview phrase that is conducted to judge the qualities of an individual
such as
Tell me about yourself?
What you know about that industry?
What is your key strengths that proved fruitful for organisation?
Do you have working experience of that field?
Box 4:
This is the stage of induction in which all members and related authorities organise
training and development plan so that they can give their best in organisational growth.
Box 5:
In that stage of HR life cycle recruiters of employees evaluate past performance of
employees in yummy tummy restaurant so that they can appoint best candidate out of them.
Box 6:
In that phrase of HR life cycle with help of learning and development plan to access
needs and wants of employees. This is one of important aspect to evaluate different aspects
(Silverstein, Samuel and DeCarlo, 2013.).
Box 7:
In that phrase of HR life cycle organisation conduct promotional activities so that they
can know positive aspects of each one and gives best succession planning.
Box 8:

In that stage employees in some special conditions quit their jobs when they feel
demotivation. After that organisation create plans and strategies to select best candidate.
Box 9:
In exit interview some specific questions should be ask that are as follows;
why are you leave that job?
Do you have other opportunities?
Factors that obstruct you to give services in that organisation?
Importance of HR in retaining workforce:
HR plays very important role in retaining and acquire best and talented work force by
evaluating and take care of their each and every need and try to give in possible manner. HR try
to reduce discrimination by applying various rules and regulations that maintains harmony in
organisational goals and objectives (Tussyadiah, 2014.).
Performance management plan:
performance management plan is an tool that helps to improve performance level of
employees.
With help of Script an issue should be discussed;
Manager: I observe that Mr. john from long time look upset and not give their best.
Employees: sir, due to overwork for long time so he feel tired.
Manager: To resolve that issue what kind of action should be taken.
Employees: To resolve that issue some more members should be include in team of john so that
he feels motivated and less burdensome.
Recommendations:
To improve performance level and documents at each stage of HR life cycle organisation
have to evaluate each and every aspect. Yummy tummy observe issues or concerns of employees
and according to give their best (van der Linden and Hambleton Eds., 2013.).
TASK 4
Different functional roles in hospitality sector and their interrelation.
There are different functional roles and departments in hospitality sector that plays major
role in reach at desirable goals and objectives and give satisfaction to consumers.
Front desk:

Front desk is critical for hospitality sector, front desk employees are first person
customers that interact with consumers in direct manner. Front desk work vary from industry to
industry and devote for greeting and giving services to give delighted experience to consumers.
Concierge:
It is one of the important functional role in hospitality sector in hotels and resorts. It helps
in contact with guest of hotels in taking information and assistance at time of stay in hotel. In a
hotel it helps in reservation, arranging for spas and other services also. There are close
relationship in different department to give information and data about guests that visit in
yummy tummy to give delighted experience to consumer base (Van der Wagen and White,
2018).
Different communication methods.
There are different kinds of communication method that helps to coordinate different
activities that are as follows:
Verbal communication:
In verbal form of communication consist of usage of words at time of delivery of
messages. It should be one to one, by phone or by group activities. It is one of the effective
method to that is personal in nature. It is used by yummy tummy restaurant to deliver right kind
of information to all people (Silverstein, Samuel and DeCarlo, 2013.).
Written communication:
In written communication can not be neglected at workplace because it is one of most
important for an organisation. By using paper and documents and letter and text chats to
communicate to reach at large consumer base.
Analysis of different communication method in specific department.
Communication method play a very important role to deliver knowledge and information
to get desirable outcomes. In order to yummy tummy's department of front desk give important
knowledge and information to other departments to serve in best manner to their clients. In front
desk they verbally communicate with consumers to know about which kind of services they want
from them. Also they deliver to other department which specialise in that specific field. They
give written orders and services that an specific consumer want to avail and record it in their
system for future use so that they can easily know about taste and preferences of their consumer
base (.Hanrahan ed., 2017.)..

Role of communication method to integrate different departments.
Communication and its methods plays very important role in integration of different
departments to each other by giving necessary information and insights to various department to
achieve goals and objectives. There are different kinds of communication system in which oral,
face to face, verbal and non verbal are significant with various departments in hospitality sector
that are front desk, reservation, cashier, concierge, house keeping and laundry (Van der Wagen
and White, 2018). .
 By oral communication method various departments deliver all types of data and
information.
 They record in written communication all orders and information that are necessary to
deliver best services.
 To serve and coordinate various activities face to face communication are very important
to deliver best services.
 In non verbal communication all members give indication about the services that deliver
to their ultimate consumer.
Recommendations
To attain desirable goals and objectives organisation have to choose best communication
method and for yummy tummy face to face communication is one of effective method to deliver
right kind of information and knowledge to give delighted experience to consumers.
CONCLUSION
From the above report it has been concluded that for an organisation to get desirable
outcomes and goals coordination in various departments is very necessary. Organisation have to
launch a new product and services into market place before it they have to know the viability of
market. Communication method is an obligatory factor that helps in achieve goals and objectives
. In an organisation all departments plays major role to give best services to give delighted
experience to consumer base.

REFERENCES
Books and journals:
Biber, E. and et.al ., 2017. Regulating business innovation as policy disruption: from the Model
T to Airbnb. Vand. L. Rev.. 70. p.1561.
Caliandro, A. and Gandini, A., 2016. Qualitative research in digital environments: A research
toolkit. Routledge.
Dahlén, M. and Larsson, M., 2014. Business history and legal history. Business History. 56(1).
pp.54-70.
Doherty, B., Meehan, J. and Richards, A., 2015. The business case and barriers for responsible
management education in business schools. Journal of Management Development.
34(1). pp.34-60.
Hanrahan, J. ed., 2017. Tourism and Hospitality Research in Ireland. IT Sligo.
Häusler, N., 2017. Cultural Due Diligence in Hospitality Ventures: A Methodological Approach
for Joint Ventures of Local Communities and Companies. Springer.
Jauhari, V. ed., 2014. Managing sustainability in the Hospitality and Tourism Industry:
Paradigms and Directions for the Future. CRC Press.
Lervik, M. and Sutherland, C., 2017. Local climate governance in the Global South: The case of
eThekwini Municipality and the Responsible Accommodation Campaign.
Environmental Policy and Governance. 27(4). pp.325-335.
Liu, B. and Pennington-Gray, L., 2015. Bed bugs bite the hospitality industry? A framing
analysis of bed bug news coverage. Tourism Management. 48. pp.33-42.
Moratis, L., Melissen, F. and Idowu, S.O., 2018. Sustainable Business Models. Springer.
Richey, M., 2016. Exploring social media use in small firms: a cultural toolkit perspective
(Doctoral dissertation, © Michelle Richey).

Silverstein, D., Samuel, P. and DeCarlo, N., 2013. The innovator's toolkit: 50+ techniques for
predictable and sustainable organic growth. John Wiley & Sons.
Tussyadiah, I.P., 2014. Toward a theoretical foundation for experience design in tourism. Journal
of Travel Research. 53(5). pp.543-564.
van der Linden, W.J. and Hambleton, R.K. Eds., 2013. Handbook of modern item response
theory. Springer Science & Business Media.
Van der Wagen, L. and White, L., 2018. Hospitality management. Cengage AU.
Vitikka, M., 2018. Establishing a toolkit for pop-up restaurateurs-Case Startup Refugees.