Budget and Business Planning
In order to make a profit and stay in business, a food service operator must be aware of costs. The biggest cost in most operations is the raw ingredients used in the preparation of menu items.
Labour costs are also a significant part of a restaurant’s operating costs. You must schedule enough staff to meet the labour demands of the food service operation without incurring unnecessary costs. Point-of-sale (POS) reports provide information that is useful in analyzing both food and labour costs. They can also help you review your menu to make it more profitable.
A basic understanding of accounting is a useful skill in the food service industry. In fact, budgeting and interpreting profit and loss statements are essential management skills.