Enhanced descriptions from Syndetics:

This new edition of Profit Planning is ideal for hotel, restaurant and licensed house managers as it focuses on profit planning, the major area of finance which the general manager needs to get to grips with. The practical aspects of day-to-day profit planning are emphasized, which means that the reader can understand the approach with the minimum of theory and technical jargon. The examples and illustrations used can easily be translated into all aspects of the hospitality industry, so this book has a wide appeal. Unit managers now have high levels of finance responsibility at an early stage in their career. This reflects the growth in strongly branded and market oriented chains of pubs and restaurants which need to achieve swift returns on their investments. The financial management skills expected of unit managers are therefore growing in sophistication and this new edition takes full account of this.

Table of contents provided by Syndetics

• Preface (p. vii)
• 1 Key features of hotel and restaurant operations (p. 1)
• A new look at hotel and restaurant activities
• Review of hotel and restaurant characteristics
• 2 Review of hospitality financial statements (p. 13)
• Profit and loss statements
• Service industry type of profit and loss statements
• Hotel profit and loss statements
• Restaurant profit and loss statements
• Balance sheets
• Cash flow statements
• 3 Understanding results (p. 27)
• Using ratios
• Kinds of ratio
• Liquidity ratios
• Asset management ratios
• Debt management ratios
• Profitability ratios
• Operating ratios
• Interpretation of results
• Yield management
• 4 Monitoring progress (p. 51)
• Sources of comparison
• Averages used in industry studies
• Comparing operating results
• Common-size statements
• Comparing results with industry studies
• 5 Planning for profit (p. 63)
• Fixed and variable costs
• Fixed and variable revenues
• Classifying revenue and expenses
• Cost-volume-profit worksheet
• Restaurant CVP calculations
• Cost-volume-profit graph
• Restaurant CVP calculations for decision making
• Hotel CVP calculations
• 6 Pricing hotel and restaurant services (p. 87)
• General pricing methods
• Restaurant pricing
• Hotel room pricing
• Developing an overall pricing policy
• 7 Profit improvement (p. 103)
• What influences profit?
• Key factors affecting net profit
• Profit Sensitivity Analysis (PSA)
• Understanding PSA results
• Market and cost oriented businesses
• PSA: a framework for profit improvement
• A criticism of PSA
• 8 Budgets and forecasting (p. 117)
• Budgets
• Why prepare budgets?
• Types of budget
• The budgeting process
• Limiting factors
• Putting the budget together
• Final budget and review process
• What do we forecast?
• Why do we forecast?
• 9 Budgets for planning and control (p. 137)
• Budgets for planning
• Preparing a flexible budget
• Budgets for control
• An overview of flexible budget variances
• 10 Using computer spreadsheets (p. 151)
• A brief review of the electronic spreadsheet
• Creating a simple financial model
• Designing a spreadsheet
• Spreadsheet graphics
• Developing a restaurant model
• Spreadsheet applications
• 11 Getting the information we need (p. 169)
• Why do we need financial information?
• What is information?
• The base of an information system
• Critical success factors approach
• Changing information needs
• 12 Capital expenditure decisions (p. 179)
• Discounted Cash Flow (DCF)
• DCF: Net Present Value method
• DCF: Internal Rate of Return method
• Net Present Value versus Internal Rate of Return
• The cost of capital
• Present value table (p. 188)
• Index (p. 191)

Author notes provided by Syndetics