M ANAGEMENT R ESPONSIBILITIES Goal 2.02:

M AINTAINING PROFITABILITY 1. Prepare daily/weekly plans. 2. Use to-do lists. 3. Delegate responsibility. 4. Limit meetings. 5. Plan for emergencies.

1. EFFECTIVE RECORD KEEPING SYSTEM standardized accounting practices- easy to understand double entry bookkeeping- recorded in 2 places accounting software- profits, expenses, purchases, reservations, recipes and food costs, work schedules/hours, wages

2. F OOD, BEVERAGE, AND LABOR COSTS operational costs food cost percentage=the ratio of the cost of food to the sale of food (how much did we pay for food? and how much food did we sell?) divided by 37000=.40.40X100=40% 40 cents out of every dollar is spent on food

labor costs direct labor costs-wages paid to employees indirect labor costs-health insurance, taxes, vacation days income- money that comes into the business expense- the money that goes out of the business ex: food cost, beverage cost, nonedible supplies, rent, insurance, salaries, wages, benefits, marketing, advertising, operating expenses (uniforms etc), utilities, sales tax, employee taxes

PORTION CONTROL decide how many portions from each batch measure PROPERLY food waste is minimized

WASTE CONTROL FIFO label and date everything store food properly handle food properly follow all safety procedures

P ROFIT AND LOSS STATEMENT income statement shows exactly how much money flows in and out of the business one month, one quarter, one year total sales-total expenses=net profit forecasting- anticipate what things will cost, how many employees will be needed, how much profit a business will make cost = income/ break even

2. INVENTORY CONTROL inventory- the amount of supplies a business has on hand need a system too much and food can be wasted too little and the business will run out of food store food properly (food with food/supplies with supplies) FIFO label and date

PURCHASING PROCEDURES How much food do we need? How long will the food last? How much do we have in stock? How far ahead do we need to order? How much space do we have?

FOOD INSPECTIONS check for damage during transport (leaking, foul smelling, wilted, bruised, over-ripe, frozen food still frozen, no evidence of insects or pests) correct quantity proper grade- check stamp correct product correct size correct price