prepare and monitor budgets project
Le’ Culinaire Hospitality Institute RTO# 45326 / CRICOS# 03667K / ABN 66 615266790 P: +61 02 9211 3945 E:
[email protected] A: level 2, 39-45 Dixon St Haymarket NSW 2000 W: www.leculinaire.edu.au Document Name SITXFIN004 Produce and monitor budgets and project Version – 1.0 Page 1 of 4 Released –February 2020 Review date – February 2021 Document uncontrolled when printed SITXFIN004 Prepare and monitor budgets project Objective: To provide the student with the opportunity to demonstrate the required performance elements for this unit. This activity will enable the student to demonstrate the following performance evidence: • Prepare a business plan that includes a budget for a startup café business use the scenario information provides or create your own café that suits the business’ needs. • Demonstrate the following when preparing the above business plan: o consultation on components o analysis of factors that impact on the budget o completion of draft and final versions of budget within designated timelines • Monitor and review the above budget against performance over its life cycle. Answer the activity in as much detail as possible, considering your organisational requirements. You can create your own restaurant or choose to use the scenario information provided and create a business plan and budget and apply it to your café. Complete all tasks and questions. Scenario information Janice Lloyd dreams of owning her own café one day and has found a small outdated café that meets her selection criteria. The location is in Surry Hills an inner city, eastern suburb of Sydney, with a thriving café culture. With the area having an explosion of boutique and independent cafes offering alternative places to relax, hang around and more than ever, to consume the best foodie fare of pretty much any city in the world. The venue is in a mixed commercial residential area, near a transport hub. All meals are served plated to the table by service staff. The restaurant caters mainly for adults ranging from 25 to 45 years old with a significant part of the suburb’s population office, business and management professionals who work, live and or commute to the area. The residential population is very culturally diverse, predominantly European and Asian backgrounds. Wild Thyme Café is Janice’s first venture into owning her own establishment, and she has been in the hospitality industry for over 12 years. Having worked both front and back of house, with the last 5 as restaurant manager in a fine dining restaurant. This experience has given her an understanding of nature of the hospitality industry. However, Janice needs a road map that will enable her to create a vision of what her business stands for, and how it’s going to stand out but also manage the business and develop and expand her new café in the future. mailto:
[email protected] Le’ Culinaire Hospitality Institute RTO# 45326 / CRICOS# 03667K / ABN 66 615266790 P: +61 02 9211 3945 E:
[email protected] A: level 2, 39-45 Dixon St Haymarket NSW 2000 W: www.leculinaire.edu.au Document Name SITXFIN004 Produce and monitor budgets and project Version – 1.0 Page 2 of 4 Released –February 2020 Review date – February 2021 Document uncontrolled when printed This is a big investment in both time and money, so it’s essential Janice spends time developing a business plan for every aspect of her business for a chance of success. A business plan will guide her through each stage of developing and managing her café, and will become a road map that will allow her to structure, run, and grow her new business As with any business start-up, she needs to consider her financial options, do reasonably extensive market research, understand the industry first and develop a business plan. The café: • The café seats 60 o Inside seating for 40 o Courtyard o for 20 • Fully licensed and BYO • The menu modern Australian with dishes from a wide variety of cuisines, including Malaysian, Chinese, Thai, Italian and Greek. With the emphasis on fresh, healthy food prepared with local ingredients. • A la carte and set menu/ table d hoté • Full table service • Takeaway available • Opening and closing times: o Tuesday to Friday 6.30 am to 10 pm o Saturday 8.00 am to 11 pm o Sunday 8.00 am to 9 pm o Monday closed. • Staff include: o Head chef X 1 o Chefs and cooks X 4 o Kitchen hands x 2 o Restaurant manager x 1 o Barista x 2 o Service staff x 7 • Equipment and fit out requirements for both front and back of house o These include but not limited to such equipment as: ▪ Kitchen equipment requirements: ⬧ Large equipment ▪ Small equipment ⬧ Two ovens ⬧ Four open-range stove-top burners (one is a wok burner) above one oven ⬧ One griddle and two open-range stove-top burners above the second oven ⬧ One salamander ⬧ One double-vat deep fryer ⬧ One combi oven (convection and steam) ⬧ Food processer and blender ⬧ Microwave oven ⬧ Slicer ⬧ Mincer ⬧ Pasta machine ⬧ Storage and cooking equipment mailto:
[email protected] Le’ Culinaire Hospitality Institute RTO# 45326 / CRICOS# 03667K / ABN 66 615266790 P: +61 02 9211 3945 E:
[email protected] A: level 2, 39-45 Dixon St Haymarket NSW 2000 W: www.leculinaire.edu.au Document Name SITXFIN004 Produce and monitor budgets and project Version – 1.0 Page 3 of 4 Released –February 2020 Review date – February 2021 Document uncontrolled when printed ⬧ One 20 litre floor-mounted planetary mixer ⬧ Walk-in cool room, dry store area and large double-door freezer ⬧ Hot bain-marie with under-display plate warmer ⬧ Cold bain-marie with under-display refrigeration cabinet ⬧ Dishwasher ▪ Restaurant front of house equipment: ⬧ Coffee machine and coffee making equipment ⬧ Glass washer ⬧ Ice machine ⬧ Tables internal x 15 ⬧ Chairs internal x 40 ⬧ Chairs external x 20 ⬧ Table external x 10 ⬧ Flatware ⬧ Glassware ⬧ Napkins ⬧ Tablecloths ⬧ Different types of cutler ⬧ Cleaning materials ⬧ Highchairs ⬧ Tea lights and Votives ⬧ Table linen ⬧ Table decorations ⬧ Artwork ⬧ Point of sale system ⬧ Light fixtures ⬧ Restroom fixtures ⬧ Bar fixtures • Office setup • Staff amenities Question 1: Janice/you is applying for a bank loan for $150 000, to start her dream café, in consultation with other stakeholders and an accountant develop a business plan for a created café or use the scenario information provided. Use the template provided or create your own. Cafe_Business_Plan _Template.docx Cafe_Setup_Costs_T emplate.xlsx projected_P_L_3_ye ar_Template.xlsx • The business plan should include: • Marketing • Products • Customer demographics • Competition and competitive advantage • Pricing • Promotional strategy • S.W.O.T. analysis • Store Design • Operations • Business structure • Approvals / Registrations Needed mailto:
[email protected] Le’ Culinaire Hospitality Institute RTO# 45326 / CRICOS# 03667K / ABN 66 615266790 P: +61 02 9211 3945 E:
[email protected] A: level 2, 39-45 Dixon St Haymarket NSW 2000 W: www.leculinaire.edu.au Document Name SITXFIN004 Produce and monitor budgets and project Version – 1.0 Page 4 of 4 Released –February 2020 Review date – February 2021 Document uncontrolled when printed • Insurance • Location & Lease • Equipment • Trading hours • Opening date • People • About Us • Organisation structure • Skills required • Financial • Setup Costs • Profit & Loss projections Along with the above business plan, produce a report outlining the following points: • Identify, access and interpret a variety of data to help prepare your budget • Identify the internal and external factors with the most potential to influence actual income and expenditure • Provide opportunities for colleagues to contribute ideas and negotiate and incorporate modifications • Base your budget on cafe objectives • Present your business plan to the relevant parties. Question 2: Produce a report, alongside your budget, explaining – in brief – why you have taken each decision including the following points in your report. While producing your budget, be sure to: • Consult at least three different authorities on the budget process, informing them of the decisions you are taking and soliciting advice • Set yourself and your colleagues (and pay attention to) deadlines for the completion of specific tasks. • Make notes of your analysis of the internal and external factors with the most potential to influence actual income and expenditure Question 3: You have achieved success, now to review your cafés actual performance and estimated performance. Produce a brief budget report outlining your findings on significant estimated performance. During your business plan development process, hold three separate 20-minute meetings with relevant parties to discuss and review the budgets performance. (hypothetical) Include in your report the following. Review of the business plan to assess actual performance against estimated performance. Investigate and take appropriate action on significant budget deviations. Store and file the budget reports. Why do we store and who should have access? mailto:
[email protected] The café: Question 1: Question 2: Question 3: