This series is aimed at all those seeking to learn more about hospitality finance. Each session commences at 2.00pm and last for 45 minutes which includes time for questions and a quick quiz to complete the session.
How do I find out what level of customers or revenue will be profit making? This is called reaching the breakeven point - a really important fact to know!
Most businesses have a combination of both fixed and variable costs in the Profit and Loss account. Fixed costs are the most challenging and these can be in departmental costs - such as payroll and also in the overhead or undistributed operating expenses. It is widely thought that hotels with a typical mix of accommodation and F&B business will need at least 30% occupancy to achieve breakeven.
In this session we will look at how to manage fixed costs, variable costs and how to find the breakeven point for your business. We will look at simple business models with one type of revenue - for example F&B through to a complex sales mix.