Good financial management is critical to maximizing revenue and minimizing costs, such as labor and food. Food service managers are responsible for maintaining good records as well as managing their costs and maximizing their revenues whenever possible. Managers look at the different costs, such as labor, materials, supplies, facilities, and operational costs and produce meals that satisfy customers while maintaining records and following all contracts, laws and regulations. The profitability of a foodservice organization hinges on a good financial management system and record keeping. This module consists of three parts that include the financial management outline, operating budget report and the master schedule with FTEs.
The module checklist and supporting evidence is below.
Financial Management Outline
The financial management outline details types of budgets, describes revenue versus expense data, and gives details on the type of foodservice department where I worked.
Operating Budget Report
The operating budget report details how the monthly operating budget is created, including the different reports used and the final October financial reports.
I prepared a 2-week master schedule and calculated daily FTEs for the cooks as suggested by my preceptor. The schedule at this facility is normally prepared by one person and is displayed outside the dietary office. Employees can request time off in advance, which is recorded on a separate calendar and then used to create the master schedule. The department is currently understaffed, which means that not all positions can be filled at all times to meet demand. The head chef is able to move around all areas and other positions are more flexible to meet all the demands of the workload because the employees are cross-trained, therefore, most cooks can help out in different areas. The FTE’s are calculated based on the standard 8 hours/day and 40 hours/week. To get the correct daily FTE’s the total hours for each day are divided by 8 hours/day FTE.