Definition
It can be defined as Restaurateur’s exchange of product or service for the value. The value may cash or a promise to pay cash in some future time, as in case of credit card sales. The cost was defined as a reduction in the assets. A sale is opposite to cost. Accountant defines the sales as an inflow of assets occurring as results of doing business.
Various ways of Expressing selling
- Rupee Sales- Sales in expressed in monetary terms for the value of goods or services. It normally does not include the taxes and tips, which if applicable must be added to the basic selling price. If the state govt. imposes the tax it must be added to the bill given to customers. Tip is not normally included in selling price.
- Unit Sales- it is expressed in terms of quantity of unit sold. E.g. 75 fillets of sole or, 100 steaks. Even though there is no monetary value associated but he number will be important for control. If 100 steaks were prepared and 80 were delivered to kitchen and 20 were returned as unsold. So we can determine the total sale for steak by multiplying it with selling price.
- Average Rupee Sales- The management might be interested in the average sale that is the average check per customer, because it indicates how well the menu is working as well as the effectiveness of overall selling efforts. It also helps to determine if the price are too high or low. The average check price is normally calculated for the meal each day. To determine it, the total value of all sales of day is divided by the number of customers. The manager will watch the average check price over a period of time to determine if corrective action should be taken or if the investigation into preparation, service or pricing should be made.
- Sales Per Waiter- it can be expressed in two different ways. One way is to express it as the number of customers served by per waiter. This figure will give some indication of efficiency of service personnel and provide a basis for better scheduling, training needs of the individual waiter, motivation corrective action etc. Another way of expressing sales per waiter is in terms of Rupee. The total sale is for a period of time per waiter is divided by the number of customer he serves. Management would able to single out better sales personnel.
- Sales Per Time Period- Total Rupee sales and a total number of sales per hour, day, week and month are important when it comes to scheduling personnel and opening and closing hours, as well as providing better services to customers. E.g A restaurant might have grossed Rs. 50000/- for three hour lunch period and grossed only Rs, 5000/- for three hours thereafter. The number of personnel scheduled for the period would be considerably different.If it has been established that one waiter can serve twenty customers per hour with optimal efficiency and high standards of service; the manager is interested in the total number of customer served per hour in the order that the standard of service can be better measured.
