Activity $1$: Develop budget

Additional scenario

As being new to role you wish to make a good impression to the owner by increasing business profits by $20\%$ over the coming year. You will attempt to cut costs where possible by looking for ways to cut costs, avoid spending money on items that are not essential to business operations and increase cash flow.

There is a business that opened across the street in late March that has similar food but is more of a bar restaurant.

Your task

Purpose

For this task, students are required to analyse financial and other business information to prepare and monitor budgets. Students are to draft and negotiate budgets, identify deviations, and manage the delivery of successful budgetary performance.

Role and participants

Operations Manager

Assume that you are a newly appointment Operation Manager. You are responsible for overseeing business operations.

Owner of the Business

The owner has recently stepped back from the business and hired an Operations Manager to fitful the role of the manager, including finance and operations management.

Head Chef

The head chef in charge of Feast of Flavours kitchen and is responsible for preparing the dishes and meeting the special customer request as per the order taken by the wait staff. The head chef is responsible to the kitchen team and the quality of products. They ensure that the kitchen performs as a team, as well as ordering and maintain food stock and interacting with suppliers. The Head Chef is responsible for designs and costing of menus in consultation with the Operations Manager.

Front of House Manager

The front of house manager is responsible for the effective running of the wait staff as well as the bar staff. They are responsible to ensure that customers are receiving fast and efficient service. They are responsible for ordering and maintaining beverage stock and interacting with suppliers.

Events Manager

The events manager is responsible for any events held at the restaurant. They must communicate with both the front of house and the kitchen when preparing for an event. The event manager ensures that any event runs smoothly through pre$-$ planning activities and determining what the customer wants. They are responsible for creating project budgets for each event held at the restaurant in consultation with the Operations Manager. Note: This assessment will occur under workplace conditions or in a simulated workplace, whichever meets the RTO requirements

Tasks to be performed

Decide and provide a summary of what is to be achieved in the new budget from the discussion with the Owner upon commencing the new role. Complete the first section of the budget preparation report.

Review the previous budget and the business profit and loss statements and complete the budget preparation report including:

Review any deviations and identify reasons for the deviation

Provide a summary of the findings from previous records

Research each aspect of the budget to determine expenses that could be decreased and list the sources

Decide on whom you would consult with and why

Identify the technique for estimating that will be used to develop the new budget

Research and describe any external factors that could impact the budget in regards to growth, opportunities and other types of budgets that similar businesses are using.

Research and describe any internal factors that could affect the budget in regards to staff, service levels, business objectives, and suppliers.

Recommendations for improvements

Role$-$play meeting with the heads of the departments $($Head Chef, Front of House Manager and Events Manger$).$ Consult the team on the reason for the previous budgets variances, any upcoming projects $($events$),$ and any recommendations identified from the budget preparation report. Ensure you ask for their input and ideas $($for the purpose of this task the Trainer$/$Assessor and two fellow students will play the roles of the heads of departments$).$ During the role$-$play ensure that you:

Use effective communication:

Speaking clearly and concisely.

Using non$-$verbal communication to assist with understanding.

Asking questions to identify required information.

Responding to questions as required.

Act as positive role model:

Have a positive attitude

Provide information and experience to others

Be patient

Be encouraging and supportive

Be caring and interested in staff growth

Demonstrate knowledgeable and experienced and be committed to improving

Be energetic and enthusiastic

Draft a Budget using the businesses standard format from the feedback from the meeting and findings from the Budget Preparation Report and email the draft budget to: the Owner, the Head Chef, the Front of House Manager and the Events Manager asking for feedback and agreement $($for the purpose of this task the staff is your Trainer$/$Assessor$.)$ Ensure that the email has no spelling or grammar mistakes, is professional and is written in a polite business style.

Include in the email: A