1.1.4 contributing factors to the success of hospitality and catering provision Flashcards
labour, material, overheads, seasonality and sustainability
what are the material costs of an establishment?
the material costs of an establishments are the costs of consumables, for example the costs of ingredients, equipment and beverages
what are the labour costs of an establishment?
the labour costs could include the payments of the workers salaries and labour costs.
what are the overhead costs in an establishment?
the overhead costs may include rent of property, electric, gas , WiFi, water and utilities.
why is seasonality important?
buying seasonal ingredients can help the local economy, the environment and be cost effective for the provision
what are the negative impacts of importing ingredients from outside the UK?
chemical preservatives to help food last in transport, fruit and veg being artificially ripened and the overuse of transport releasing more green house gases.
what is sustainability?
sustainability is being aware of the resources used; using ingredients, energy and materials that are sustainably sourced means they have less impact on the environment.
What happens to customer spending when the economy is strong?
Customers have more money to spend on leisure activities and eating out.
What is the effect of a weak economy on customer spending?
Customers may not have as much disposable income to spend.
What is Value Added Tax (VAT)?
A tax added to a sale, raising money for the government from consumer spending.
What is the standard rate of VAT as of September 2022?
20 per cent.
Are there any exemptions to VAT?
Some foods are exempt from VAT.
Is VAT applicable to services?
Yes, VAT must be added to services.
Why is it important to budget for VAT?
It could amount to a large bill that will eat into profit.
How does the exchange rate affect tourism in the UK?
Good exchange rates may encourage consumers from other countries to travel to the UK.
What impact does a poor exchange rate have on UK customers?
UK customers may stay in the UK if the exchange rate is poor.
What can the value of the pound influence?
The cost of food and spending in the hospitality sector.
What does being an environmentally friendly business promote?
Sustainability and the use of as few natural resources as possible
This approach appeals to customers and can lead to increased profits.
How can keeping environmental costs to a minimum affect profits?
It can reduce overall costs, which increases profit
Lower environmental costs contribute to better financial performance.
What are customers interested in regarding food?
Food provenance and establishments’ food waste policies
Customers are increasingly concerned about where their food comes from and how it is managed.
What is seasonality in the context of food purchasing?
Buying foods when they are in season
Why is buying seasonal foods considered cost-effective?
They are in plentiful supply
What is one benefit of buying locally sourced foods?
Supports local farmers
How does buying locally affect food transportation?
Reduces food miles
What do customers prefer regarding ingredient sourcing in restaurants?
Using ingredients that are in season
What are variable costs?
Costs that can change depending on the amount of business the establishment does, such as the cost of food and drink.
Variable costs fluctuate with production volume.
What are fixed costs?
Costs that are always the same, such as rent, insurance, and energy.
Fixed costs remain constant regardless of the level of business activity.
True or False: Fixed costs can increase or decrease.
True.
While fixed costs are constant in the short term, they can change over time.
