Financial performance reviews
Quite simply, as you would expect, the purpose of the finacial performance review is to identify how well the business is being managed. The extent of any review we undertake will be determined by the needs of the client. For example, in an in-house review we will cover all five areas outlined below, whilst for a contracted-out service (where the client income is derived from a concession) it may only be appropriate to review the first two areas.
This is how a typical five-stage financial performance review works:
- Sales opportunity: Given our assessment of the potential demand for the services we conduct a review of sales to establish whether the business is maximising the revenue opportunities available to it. This may include comparisons of spend per head, spend per visitor and penetration rates relative to industry norms.
- Marketing review: At this stage we consider how well the services are marketed and include an evaluation of internal and external marketing initiatives, merchandising techniques and directional and display signage.
- Management of business costs: Next we deliver an appraisal of the various cost lines on the catering account, including (but not limited to) food costs, gross profit margin, payroll costs, financial performance and caterer's earnings.
- Revenue and cost control procedures: Finally we undertake an assessment of the efficiency and effectiveness of the catererâ€™s financial control systems, including general financial control, cash control and stock control.
- Overall performance: At the conclusion of the programme we generate a summary report of our findings and provide recommendations for improvements.