Business Basics
What departments in hospitality businesses generate revenue through the operation of business
Revenue Centers
What is the technique used to predict guest demand and optimize product availability
Revenue Management
What is the profit and loss statement, that is a document that shows a company's revenue
Income statement
For restaurants how many KPI's are there
3
What is used to make expense decisions for longer periods of time
Capital Budget
What are departments that do not generate revenue but are needed for the operation of the business.
Cost centers
What is the process of deciding which set of guests would rather have.
Displacement analysis
what looks at the overall financial position of the business at any given time.
Balance sheet
What is the simplest and most common foodservice KPI
Average KPI
What is sometimes called cost-benefit analysis
Cost analysis
How are revenue centers evaluated
On how much revenue, or sales, is brought into the business.
What reflects the amount of sales that will be lost if you increase prices
Price elasticity
things that the company's owns
Assets
What is the amount of every dollar in sales that goes to pay for the food and the labor
PCP
How many steps is there to complete in every cost analysis
5
How are cost centers evaluated
On how well expense costs stay within predetermined parameters.
What means that if you don't have every seat occupied from open to close, you can never get that lost revenue back.
Perishability
Money owed to other companies
Liabilities
What is the significant KPI for cruise ships
Passengers carried compared with passenger capacity
When should cost analysis be done
Any time a decision is made to either change the way something is currently being completed or to add things
What are numbers, or percentages, that show how your business is preforming.
Key performance indicators
What means that the operation makes very little money per unit sold.
Low profit margin
The difference between liabilities and assets
Equity
What does ADR stand for
Average daily rate
What is the first step in Hospitality Cost Analysis
Consider how the task is currently being handled