Budget Report (2)

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Nov 24, 2024

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Budget Report Introduction The actual value for October is contrasted with the budgeted value. Value as it actually is, with notable deviations. Few negative variances and the majority of positive variants. Additionally, there is a difference between the actual data for October and the average for the previous quarter. In both cases, there are positive features like food sales, beverage sales, and function sales as well as negative ones like food cost, beverage cost, and wages. Part A We made the projections for the quarter of October to December to increase the profit to 28% by making the given adjustments. Favorable Aspects Food sales, beverage sales, and function sales are three different favorable features. Comparison reveals the discrepancy between the actual and projected values for October. Comparable sales for food, beverages, and function are 5.28%, 22.66% and 7.73%, respectively. All of the values are positive overall as comparison of October actual and average of last quarter which is 15.19%, 27.21% and 17.12%. Non- favorable aspects There are three variations in unfavorable factors as well, including the price of food, the price of beverages, and the wages. Comparison reveals the discrepancy between the actual and projected values for October. Food, beverage, and function sales cost are compared at -25.70%, -46.09%, and -3.29%, respectively. Contrast, however, shows the difference between October's actuals and the average for the previous quarter sales represent the contrast figures for favorable features. All values are generally negative in comparison and positive in contrast. Recommendations  Restaurants must negotiate with their current suppliers to clarify the cost of obtaining commodities.  For their profit margin, restaurant owners need to discover new suppliers.  Restaurants can pay attention to working hours by assigning shifts based on quiet and busy times, which will help to reduce labor costs.

Variance Report for November and December Introduction The budget deviations for November and December are highlighted in this report. Shows the effect on the restaurant as well as any good or unfavorable variances, and it will also highlight the crucial areas for improvement. Impacts after the month of October recommendations After October, it was advised that bargaining with suppliers over pricing and credit terms could help to lower the high cost of food. Now that the Nov. and Dec. data have been analyzed, it is clear that the cost of food has steadily decreased, going from a high of -25.70% to a low of -16.08% in November and -2.62% in December. Explain the variations at the end of December Favorable variance There are three variances in favorable aspects namely food sales, beverage sales and function sales. Comparison shows variance between actual December value and budget value. The variance for food, beverages and function sales are -5.95%, 5.93%, and 12.46% respectively. Non- favorable variance There are three variations in unfavorable aspects: the price of food, the price of beverages, and the wages. The comparison shows how different October's actual results were from the average for the previous quarter. 2.62% for wages, -2.65% for food costs, 9.72% for beverage costs for non-favorable characteristics. Overall, wage and food cost variations are negative, whereas beverage cost variations are favorable. ● Reasons for continued current budget variations Forecasting: Budget planning has a number of effects on the budget, and forecasting is the act of creating projections based on historical and current data. Budget variations would result if we had planned our spending according to predictions, but the prices of items on the market had changed instead of sales. Staff rotation: Staff changes can occasionally have an influence on the budget as well. For example, if you recruit new employees during a busy season, it will affect your sales because it will take longer to train them. Budget deviations will result from this.

Marketing: In essence, restaurant marketing is how you present and advertise your food business to the public. You can expose your goods to the market in a number of methods, such as through marketing, promotions, and sporadic samples. Areas for Development Restaurants must concentrate on increasing revenue while reducing costs. To draw customers, restaurants should market their goods using eye-catching graphics. Restaurants should exercise more caution when recruiting new employees, especially during busy times. Recommendation: Restaurants must increase their sales. To draw clients, they ought to make tempting deals. Budget Management It is the process of controlling and monitoring earnings and outlays. Along with an overall company budget, organizations frequently have budgets for various industry sectors. Budget management falls under the purview of departmental managers. Approaches to Budget Management Lowers Cost: Cost With the use of new and improved processes, reduction can be defined as a drop in the cost of the company's goods and services while maintaining their quality and suitability for the intended use. Benefits of cost reduction: One of the main advantages of reducing your price is that you'll draw in more customers. Some people prefer to purchase items at cheaper costs than at higher costs. Increasing sales will be beneficial. Benefits of cost-cutting: Cost cutting is a good thing for the company's long-term development and growth, but it can also create unfavorable feelings among the staff and throughout the organization. It may be interpreted as cost-cutting by the staff, which would spread panic among the entire organization. It's not always a good change when processes are changed as part of

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cost reduction. When a change is damaging, it can result in more losses rather than gains and advancements. Changing Roster/Reducing Staff Advantages: One of the most popular methods for lowering restaurant costs is changing the roaster. colleagues' working skills improve as they switch up their roster shifts and collaborate with other colleagues. With all of them, they cooperate more. Staff reduction can lower labor costs because it can be done in accordance with quiet and busy periods. Disadvantages: The budget may be impacted by staffing changes or roster adjustments since, in certain cases, restaurants lose experienced workers when they hire new ones, and occasionally, frequent customers may stop coming. Because customers frequently inform staff members of their absences, they may not want to take anything with them. Reviewing Operating Procedures Advantages: Advantages of Reviewing Operating Procedures: Reviewing enhances your enjoyment of work, life, and leisure activities, particularly if your reviewing abilities match your goals. Any procedure that enables you to apply personal experience for learning and growth is considered reviewing. Disadvantages: Unnecessary paperwork and a loss of workplace personality are some of its drawbacks. There may be some inconsistencies despite our best efforts to adhere to the citation style guidelines. The significance of budget oversight To make sure that the financial, operational, and capital plans that were created and approved for implementation as part of the budget processes are being implemented, it is crucial to monitor the budget. For a company to impose expenditure accountability, budget monitoring is essential. Recommendations

 Set objectives. Financial goals can be either short-term or long-term in budget monitoring.  Make periodic calculations of your income and expenses.  Review your expenses.

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