Analysis and Case Studies of Factors Affecting Hotel and Catering Profits

(II) Analysis Methods and Cases of Factors Affecting Catering Profits

Case Study 2: Based on data from the third-quarter restaurant operating report, the food and beverage manager of a hotel analyzed five key factors affecting restaurant profits and made arrangements and forecasts for the next quarter's performance. Their analysis methods and steps were as follows:

The first step is to review the third quarter's restaurant accounting profit and loss statement to obtain the base profit and related data for restaurant operations, as follows:

| 1 | Number of guests received | 45,850 | 6 | Cost of non-permanent staff | 62,400 yuan |

| 2 | Per capita consumption | 38.65 yuan | 7 | Energy consumption | 68,600 yuan |

| 3 | Sales Revenue | 1.7721 million yuan | 8 | Fixed Costs | 253,900 yuan |

| 4 | Raw material cost | 698,600 yuan | 9 | Total cost | 1,303,300 yuan |

| 5 | Personnel Costs | 219,800 RMB | 10 | Profit Realized | 468,800 RMB |

The second step involved analyzing and comparing various factors affecting restaurant profits, from which eight main influencing factors were selected and listed below:

1. Number of guests received; 2. Food and beverage sales price; 3. Average spending per guest; 4. Water and electricity costs; 5. Food ingredient costs; 6. Food and beverage personnel costs; 7. Fixed cost consumption; 8. Cost of non-permanent staff.

The third step is to analyze the impact of changes in the above factors on restaurant profits. The method involves changing each factor by 10% in a direction that increases restaurant profits, and then calculating the factor profit and profit multiplier for each factor after the change. The calculation method and results for the profit multiplier are listed below:

**Restaurant Profit Multiplier Calculation**

Unit: 10,000 yuan

| Factors | Base Number | Number of Guests | Average Spending per Person | Raw Material Costs | Personnel Costs | Extra-staff Costs | Fixed Costs |

| | | | Selling Price | Sales Promotion Measures | | | |

| Number of Guests | 45850 | 50435 | 45850 | 45850 | 45850 | 45850 | 45850 |

| Average spending per person | 38.65 yuan | 38.65 yuan | 42.52 yuan | 42.52 yuan | 38.65 yuan | 38.65 yuan | 38.65 yuan |

| Food and Beverage Revenue | 177.21 | 194.93 | 194.95 | 194.95 | 177.21 | 177.21 | 177.21 |

| Raw Material Costs | 69.86 | 76.85 | 69.86 | 76.85 | 62.87 | 69.86 | 69.86 |

| Personnel Costs | 21.98 | 21.98 | 21.98 | 21.98 | 19.78 | 21.98 |

| External Costs | 6.24 | 6.86 | 6.24 | 6.24 | 6.24 | 6.24 | 5.62 |

Energy Fee | 6.86 | 7.55 | 6.86 | 7.55 | 6.86 | 6.86 | 6.86 |

| Fixed Costs | 25.39 | 25.39 | 25.39 | 25.39 | 25.39 | 25.39 |

| Total Cost | 130.33 | 138.63 | 130.33 | 138.01 | 123.34 | 128.13 | 129.71 |

| Profit Amount | 46.88 | 56.30 | 64.62 | 56.94 | 53.87 | 49.08 | 47.50 |

| Profit Change % | - | 20.09% | 37.84% | 21.46% | 14.91% | 4.69% | 1.32% |

| Profit Multiplier | 1 | 2.009 | 3.784 | 2.146 | 1.491 | 0.469 | 0.132 |

The fourth step is to analyze the percentage changes in influencing factors for the next quarter and predict and arrange profit targets. Analysis shows that the next quarter, approaching the end of the year, is a mini-peak season for local catering businesses. The expected changes in various influencing factors are as follows:

| 1 | Number of Guests | 7.86% | 3 | Sales Promotion Measures | 4.28% |

| 2 | Product Price | 2.34% | 4 | Raw Material Cost | 3.16% |

| 5 | Other factors remain unchanged | | | | |

Based on this, the Food and Beverage Manager predicted the impact of various factors on profits in the next quarter and forecasted the total profit as follows:

| Influencing Factors | Profit Multiplier | Change in Factors (%) | Base Profit | Change in Profit Amount |

| Number of Guests | 2.009 | 7.86% | 46.88 | 74,000 RMB |

| Product Price | 3.784 | 2.34% | 46.88 | 41,500 RMB |

| Sales Promotion Measures | 2.146 | 4.28% | 46.88 | 43,100 RMB |

| Raw material cost | 1.149 | -3.16% | 46.88 | -17,000 yuan |

Total | | | | 141,600 yuan |

Projected profit for the fourth quarter = 46.88 + 14.16 = 61.04 (ten thousand yuan)

The fifth step is to analyze the impact of key factors on profits. The restaurant manager aims to increase total restaurant profits by 18.65%, but only selected increasing customer numbers. Three factors-increasing average spending per customer through promotional measures and reducing raw material costs-did not achieve the expected goals. Analysis shows that with a planned increase of 5.24% in customer numbers and a reduction of only 1.86% in raw material costs, by what percentage should the promotional measures increase average spending per customer? The manager conducted the following analysis and obtained the expected data:

(1) Expected profit increase target → 18.65%

(2) A 5.24% increase in customer numbers will increase profit by 2.009 × 5.24% = 10.53%.

(3) A 1.86% reduction in raw material costs can increase profits by 1.491 × 1.86% = 2.78%.

(4) Percentage increase in residual profit → 5.34%

(5) Promotional measures increased the percentage of per capita consumption by 5.34% ÷ 2.146 = 2.49%