What one needs to do in his business is control the number of sales the last 3 years and compare them with each other. The most important year is the present year but one need to examine the 2 years before to see if the company is going better or worse, has increased profits or not. If sales are higher the present year the company is safe.
What one needs to do after is to determine the cost the business has. Examples of these costs are licenses, loan amounts, food costs (for hotels), employers for restaurants and hotels etc.
Everything a business pay (hotels, restaurants) depends on their profits. If their profits are high their costs will increase as the company has more money to spend.
POSTED BY: Katerina Argyros
More info: http://hubpages.com/hub/Restaurant-Profit-Percentage
This is partially why the HRL industry was in such bad shape the past two years. Because people didn't have disposable income to spend, they weren't going on vacations or out to eat. Hotels and restaurants really took a beating the past three years. Hopefully we'll see an improvement soon!
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