Describe how to analyze and troubleshoot costs of goods sold line items, including comparisons to industry averages and standards to understand an operation’s financial performance.

Module 7 Financial Management
Connect

Restaurant Sales Forecast(opens in a new tab) (2:49 min)

Have you ever wondered how a restaurant manager knows how many staff to schedule, or how the chef knows how much product to order? Forecasting sales enables these and other questions to be answered. Watch the video to see what methods and considerations are used by managers to aid them in this task.

While watching the video, consider the following:

a. List two reasons why forecasting sales is so important.

b. Compare forecasting for a seasonal operation and a year-round operation.

c. What two items need to considered when forecasting, besides regular business?

Content
Learning Outcomes

By the end of this module, you should be able to:

• explain the purpose of a profit and loss statement and how to read it,

• describe how to analyze and troubleshoot costs of goods sold line items, including comparisons to industry averages and standards to understand an operation’s financial performance, and

• explain what is involved in forecasting and building a food and beverage budget.