HRT 374 Lecture Notes - Lecture 1: Fast Food Restaurant, Fixed Asset, Financial Accounting

• School: Cal Poly Pomona
• Department: Hospitality Management
• Course: HRT 374
• Professor: John Self

Document Summary

Different types of provide both products and services to it guests includes: Largest category- lodging and restaurant operations involves salaries, wages, benefits. Food service operations- income before taxes represents a relatively small % of total revenues. Labor intensive- e. g # of people/total sales. Investment in fixed assets- hotel industry must have the best location to be successful. Common measure for lodging operations is paid occupancy percentage. Paid occupancy percentage- indicates what percentage of the rooms available for sale are actually sold. Calculated by dividing the number of rooms sold by the number of rooms available. Food service operations must offers products that meet the consumer"s expectations, however, the distribution chain and time span is considerably shorter for hospitality. Hospitality operations maintain a minimal inventory of the goods they provide. Major operations in the hospitality industry have less than 5% of their total assets invested in inventory of goods for resale.