Scenario for tasks 1 and 2
You have been given the opportunity to share in the management and operation of a new street-food van, so have decided to carry out research into the practicalities of this idea, to help you decide whether or not to join in with this project.
Task 2: Examination of Financial Controls.
You know from your studies how important good financial management is for a successful food and beverage operation, so have decided to next research this area.
The findings from task 2 should be submitted in a written report with an introduction at the beginning and a conclusion at the end. The suggested word length for this report is 1,000 – 1,250 words, excluding any appendices. Include a bibliography in the Harvard referencing format. Make sure you write your name on your report and number all the pages.
The task 2 report should be structured as follows:
a. Introduction, which includes explanation of financial terms you will use in your report.
b. Discussion of how you plan to use financial statements, e.g. budgets, sales records, variance analysis and dish costing sheets, to help you manage the finances of the proposed street-food van. A good explanation will include correct use of relevant technical terms and will show how these financial statements relate to each other.
c. A simple, but realistic, menu for the street-food van.
d. Explanation of what needs to be considered when calculating the selling price for the dishes on the menu in addition to the cost of the ingredients, e.g. net and gross profit, different types of costs, sales mix, special offers, etc. Excellent explanations are justified, e.g. by explaining why your prices are likely to be different from those found in a restaurant and why the gross profit margin might vary for different items in a menu in order to improve the sales mix; with examples from your menu used to illustrate points made.
e. Demonstration of your use of cost and pricing processes by completing the menu costing exercise below.
Menu Costing Exercise
i. Select two dishes from the street-food van menu for this exercise.
ii. Write down the recipes for these two dishes with the exact amount and cost of each ingredient used for one person.
iii. Calculate the total cost of each dish for one person. Excellent calculations are accurate.
iv. Calculate the selling price of each dish to achieve a gross profit margin of: a) 60% and b) 75%. Excellent calculations are accurate.
v. Recommendation for a selling price for each dish, with reasons for choice, including pricing method used
f. Analysis of how you plan to control the purchasing, receipt and storage of food and beverages for your street-food van. This should include the role of purchase specifications in the purchasing process. Good analyses show awareness of the relationship between all stages of the purchasing process.
g. Conclusion which sums up your learning form this task. Good conclusions will include recommendations for the management of the street-food van operation, including whether you think it will be a viable operation, based on your analyses. Excellent conclusions will be holistic, in-depth and well-reasoned.
Financial discussions are analytical, clear and coherent, demonstrating understanding of the complex issues involved.
The report is well structured with use of appropriate technical language, citations and a bibliography in the Harvard referencing format and it has been checked for spelling errors.
There is good evaluation of the role of costing and pricing in food and beverage control and conclusions are deep, bringing complex ideas together and are critically reflective.
Calculations are accurate and the whole task has been completed to a high standard.
Davis B, Lockwood A, Pantellis I & Alcott P (2008) Food and Beverage Management Butterworth Heinemann
Burgess C (2010) Essential Financial Techniques for Hospitality Managers Goodfellow Publishers Ltd
Cracknell H.L, Kaufmann R.J. & Nobis. G (2000) Practical Professional Catering Management Macmillan Press Ltd
Sprenger R (2002) Hygiene for Management Highfield Publications
Caterer and Hotelkeeper www.catererandhotelkeeper.co.uk
Food Standards Agency www.foodstandards.gov.uk
Institute of Hospitality www.instituteofhospitality.org