Restaurant Operations and Financial Management

Strategic Organization

Management Department: Marketing Communication, Human Resources, Financial Department.

Operations: Manager, Lounge, Kitchen, and Purchases.

Operations Area Organization Chart Example

Operations: Food & Beverage Director > Chef de Cuisine > Sous Chef > Asst. Chef de Partie; Bakery and Cook.

Asst. F&B Manager; Restaurant & Bar Manager; Banquet Manager; Chief Steward. (These are the three main roles, each of which leads to lower-level positions.)

Self-Assessment of Capabilities

Autodiagnosis: Self-evaluate your skills in sales, languages, taking orders, wine service, coffee machine operation, carrying trays, table setting, etc.

People Management

Dirección de Personas: Planning, Selection, Integration, Training, Executive Development, Performance Appraisal, and Compensation.

Cost Structure in Restoration Activities

Minimum Expression of P&L Account (Absolute Terms):

• Incomes (Sales)
• Costs of Raw Materials (Food Costs)
• Costs of Personnel (Labour Costs)
• General Costs
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) - Gross operating profit calculated before deducting financial expenses.

Key Financial Calculations

Calculate: Cost of Raw Materials (Food Cost), Staff Cost, Cost of General Expenses, Profit (Loss), Labour Cost, EBITDA.

Food Cost Definition

Food Cost: This concept refers to the cost of food sold during a specific period.

Food Cost Calculation

Clasificación de los costs en restauración:

• Initial Inventory
• + Purchases during the period
• + Goods received from other departments
• - Goods transferred to other departments
• - Final Inventory
• = FOOD COST

Prime Cost

Prime Cost (Costes Primordiales): Also known as Manufacturing Cost, it is the sum of Food Cost + Labor Costs.

Prime Cost (Coste de Fabricación): Food Cost + Direct Labor Costs.

Typical Cost Structure in Restaurants

Estructura típica de los costs en empresas de restauracon:

• EBITDA: 10%
• Raw Materials: 40%
• Labor: 30%
• General Expenses: 20%

To achieve a positive EBITDA, the ratio of primordial costs to sales for the period should not exceed 0.75 (75%).

Profit Calculations

Benefico bruto: Revenues – Food Cost

EBITDA: Gross Profit – Labor Costs – General Expenses

ERP Systems in Restaurants

ERP: An Enterprise Resource Planning software that interconnects a restaurant's departments.

ERP System Features: Integration, Sales Management, Mobile Functionality, HR Management, Delivery Methods, Interoperability.

Successful ERP Implementation Factors

6 Factors for Successful ERP Software:

• Implementation is change.
• Pay attention to both the organization and ICT.
• Clearly define the results.
• Manage expectations based on the results.
• Clearly define roles and responsibilities.
• Use a structured project approach.

Brigade Planning for Lounge Area

Planning the Brigade (Lounge Area):

• Create an organizational chart specifying professional categories.
• Prepare the staff quadrant for January.
• Calculate the labor cost for March in your restaurant.