Restaurant Shark Tank Project Restaurant Management

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Shark Tank 3 Copyright © Texas Education Agency, All rights reserved.

Budgeting and Forecasting 4 Copyright © Texas Education Agency, All rights reserved.

Budgets Help businesses monitor spending Key to maximizing profits Lists anticipated sales and projected costs 5 Copyright © Texas Education Agency, All rights reserved.

Types of Budgets 6 Estimated spending for one year, often divided by department Annual Scheduling large expenditures Long-range Used to operate the business daily. Especially important for seasonal businesses Monthly Copyright © Texas Education Agency, All rights reserved.

Forecasting Future sales Historical data Predict future trends 7 Copyright © Texas Education Agency, All rights reserved.

Revenue Also call sales Money from the business from product sales 8 Copyright © Texas Education Agency, All rights reserved.

Profits All businesses want to make money! Money left over after all expenses are paid Profit = Revenue – Costs Example: Mario’s Bistro had a total sales revenue for the month of $125, Total costs for the month were $55, Profit equals $70, Copyright © Texas Education Agency, All rights reserved.

Investors 10 Copyright © Texas Education Agency, All rights reserved.

Recipe for Restaurant Profits 11 (click on link) (image from video) Copyright © Texas Education Agency, All rights reserved.

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Let’s Review! 1. What is a budget? 2. What are three types of budgets? 3. Which budget estimates spending for a year? 4. What does forecasting do? 5. What is revenue also called? 6. What is the equation for profit? 7. Who are investors? 8. Do you have a concept or product investors may be interested in? 13 Copyright © Texas Education Agency, All rights reserved.

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References and Resources Images: Shutterstock™ images. Photos obtained with subscription. (Slides 1, 3, 4, 5, 7, 8, 9, 10, 12, 14, 15) Textbooks: Leugers, M. (2014). Controlling costs in foodservice. Tinley Park, IL: Goodheart-Willcox. Reynolds, J. S. & Chase, D. M. (2014). Hospitality services. (Tinley Park, IL: Goodheart-Willcox. YouTube™: Recipe for Restaurant Profits: Restaurant Success Series from ICE and American Express Cutting corners is easy and fast, but could you end up leaving money on the table? Discover the number one thing you need to know to make money and be successful in the restaurant business. Plus, ICE’s experts will teach you why everything from the attire of your staff to the design of your flatware can boost or hinder sales Copyright © Texas Education Agency, All rights reserved.