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1The Captain is section (area) supervisor of approximately four guest tables. 2The Sommelier is the wine steward.3The Chef du Trancheur serves desserts (often from a dessert cart) and other after-dinner items.4The Chef du Rang is the lead table server; Commis du Rang is his/her assistant.
Note: The titles of positions external to the unit vary between organizations. There are typically several regions within a very large national chain. Some have international subsidiaries. Also, there is a trend toward “flattening” the organization and increasing the span of control.
Planning: The basic management activity which involves defining goals, establishing strategies to achieve them and designing ways to get work done.
Organizing: The basic management activity which involves developing and grouping work tasks.
Coordinating: The basic management activity which involves arranging group efforts in an orderly manner.
Staffing: The human resources function which involves recruiting applicants, selecting employees, making a job offer and orientating/inducting staff members who accept the offer of the hospitality organization.
Directing: The basic management activity which involves supervising the work of staff members.
Controlling: The basic management activity which involves determining the extent to which the organization “keeps on track” of achieving goals.
Evaluating: The basic management activity which involves determining the extent to which plans are attained.
Vision: To be the restaurant of choice for social groups in the community.
Mission Statement: To meet needs of social groups by providing desired food/beverages and services at the prices which represent value for the guests.
Long-Range Plan: To obtain 60% of all social group business in the community within five years.
Business Plan: To increase market share of all social group business in the community by 5% within the next 12 months.
Marketing Plan: Strategies and tactics to increase social group revenues within the next 12 months.
Operating Budget: Expected revenue generated from and costs associated with social group business.Note: The marketing plan and operating budget are very closely related; the marketing plan indicates what
will be done to increase revenues, and the operating budget reflects these planned revenue increases and the costs which are expected to be incurred to generate the revenue.
Step 3: Variance Between Standards and Actual Performance Must Be Assessed
Step 4: Corrective Actions to Address Variances Between Standards and Actual Performance Must Be Implemented
Step 5: Corrective Actions Must Be Evaluated to Assure Success
EXAMPLE
The restaurant’s operating budget establishes a 35.5% food cost goal.
The Income Statement indicates that the actual food cost is 39.3%.
The variance of 3.8% (39.3% - 35.5%) is unexplainable and excessive.
Decision-making (problem-solving) techniques are used to generate/select solution alternatives. Two tactics (improved purchasing and use of portion control procedures) are implemented.
Food cost is reduced during the next fiscal period to 37.8%; a step towards the 35.5% goal has been taken; further corrective actions will be planned and implemented.