5.7.4.1. Detailed Steps in Planning the Foodservice Budget
Collect Operating Data: Gather data from records and reports, including actual operating figures and budget variances from the past three to four years, income and expense trends, sales reports, menus, prices, customer selections, portion sizes, food costs per portion, and labor statistics.
Evaluate Data Against Goals: Review and evaluate the collected data in the context of departmental goals. Justify or explain any variances observed, and consider how income and expense trends, sales reports, and labor statistics align with these goals.
Analyze Influencing Factors: Discuss external and internal factors that may impact future operations.
- External Factors: Local economy, government actions (tax or law changes), utility costs, new construction, and competition.
- Internal Factors: Planned facility additions, changes in the foodservice system, converting to computerized record-keeping, or altering service hours.
Discuss and Plan for New Goals: Consider new activities or goals, such as remodeling projects, purchasing new equipment, or introducing new services like catering.
Set Priorities and Make Decisions: Determine what can be included in the budget for the next year, prioritizing based on the contribution each request makes toward the organization’s mission. For example, a school manager may need to justify a $30,000 refrigerator purchase by demonstrating its contribution to the district’s educational goals.
Write the Budget for Presentation: Although there is no standard format for a formal budget write-up, it typically includes an organized listing of expected income, categorized by sources, and a detailed list of all expense items.
By following these structured steps, a foodservice operation can develop a comprehensive and realistic budget that supports its strategic goals and operational needs.
