Factors affecting success

• What are the seven factors affecting success?

  • Costs
  • Profit
  • Economy
  • Competition
  • Environment
  • Media
  • Technology
• What is the formula to calculate profit?

  Multiply food cost by 100, divide by 40
• What are material costs?

  Costs for food and cleaning products
• What are labour costs?

  Wages paid to staff
• What are overhead costs?

  Costs like rent, energy, and VAT
• What is gross profit?

  Money left after paying for ingredients
• What is net profit?

  Money left after all expenses are deducted
• How can a business save costs?

  By not over-ordering stock
• What does FIFO stand for in cost management?

  First In, First Out inventory method
• Why is portion control important?

  It helps in managing food costs
• What is the impact of the economy on business?

  It affects consumer spending on dining out
• What is VAT?

  Value Added Tax paid to the government
• How does the strength of the economy affect dining out?

  Stronger economy means more money for dining
• How can media influence a business's success?

  It builds brand awareness and customer loyalty
• What are the types of media mentioned?

  Internet, print, and broadcast media
• What is a potential downside of social media for businesses?

  Negative reviews can lead to lost customers
• How does technology improve business operations?

  By reducing mistakes in stock management
• What is the purpose of contactless payment systems?

  To streamline transactions and reduce errors
• What is the cost per portion formula?

  Cost per portion = cost x 100 / 40
• What are the strategies to ensure business success?

  • Provide good customer service
  • Reduce food waste
  • Buy seasonal and local produce
  • Advertise effectively
  • Offer competitive pricing
• What are the key components of managing costs in a business?

  • Material costs
  • Labour costs
  • Overhead costs
  • Strategies to save costs
• What are the implications of the economy on a business's operations?

  • VAT impacts pricing
  • Exchange rates affect tourism
  • Economic strength influences consumer spending