RESTAURANT MANAGEMENT

Restaurant Management

Restaurant Management

Part 1

Managing a restaurant business faces several challenges since from the start of planning and to the opening of the business to the public. Of all the business establishments within a town or city, the restaurant is strictly monitored concerning to health and safety issues. Even the plan for restaurant renovation is still being observed and checked by the local authorities ensuring that the guidelines are being followed. The crucial question is why a restaurant needs for a renovation? Let's find out the answer. To become competitive in the industry, changes in the menu and improvement on the quality of service are still not enough for this purpose; this is the reason why restaurant renovations ideas are being applied (Jane , 2007, Pp. 67).

The idea of adopting renovations is to increase the functionality to the establishment which is beneficial to customers that utilize the facilities. Restaurant owners are extremely focused on achieving satisfaction on the dining experience of the patrons, thus improving also the profitability of the business in overall. If the customers are happy in using the facilities, this is a good sign of effectiveness of the renovation. Prior to plan for renovation, the restaurant owner considers various aspects to guarantee that the ideas will lead to positive outcomes. Despite all of the economic levers and factors that many experts might cite, the reality is that fast-food franchises that lack new and fresh ideas will continue to lose out to those that continue to innovate and offer consumers a fresh, exhilarating experience.

Food, after all, in many parts of the country is regarded as entertainment. Consumers want a pleasurable experience when they go "out" which creates some excitement after the routine of their everyday activities and doesn't put a significant dent in the budget. Those franchises that provide this entertainment at a reasonable cost will ultimately defeat even those other players with a stronger, better-established brand (Sadgrove, 2005, Pp. 35).

Having worked in the retail fast food business for a good number of years, I have seen the sales in store decline substantially. The main reasons include too many dissatisfied customers, other types of food businesses coming in the area, market saturation, etc. The store looks tacky and unappealing from a customer point of view. As a store manager, the pressure was enormous because of poor sales. Despite for a number of years, we were telling the area manager that the store could do with a refit.

Part 2

Budgeting systems

Budgeting is a part of the financial planning which is structured to feature projections on income and expenses of the company both short-term and long-term. Budgets includes the thorough budgeted balance sheet, a cash flow budget which features the flow of company expenses on monthly, quarterly, semi annually and annually basis. Fixed and flexible budgeting helps to take account of changes, and is particularly useful in measuring performance and in establishing what needs to be done. Business managers talk about fixed and flexible budgets, with the following distinction ...