Food & Beverage Department 2024 Operating Budget Summary
The following pages are notes to the 2024 Food and Beverage Operating Budget. The budget will be used as a guide to consult for decisions regarding scheduling, revenue goals, and purchasing. The Budget for 2024 is based on historical data, 2023 projected revenue, prime costs, and controllable expenses for 2023. Profit and Loss 2024 Summary We are projecting a 6.4% increase in revenue for 2024. We are being conservatively optimistic in our revenue forecast since we are close to capacity for dining room usage for most of the summer and catering sales remain flat. We will look to increase dining usage during the weekdays and at the slower part of the season. Event usage has remained high but is often dictated by weather. There will be additional price increases also to enhance revenue.
Cost of Sales have remained good with increased efficiencies and diligent monitoring of internal costs for events and employee meals.
We are forecasting only a 3.0% increase in expenses for 2024. We had over a 7% increase in 2023. Most of this year’s increase is again due to labor. This is our largest expense that continues to grow substantially due to labor competition, minimum wage increases and Flagstaff cost of living. However, we found several other areas where savings were possible.
This leads to only a 2.9% increase in net loss from our 2023 projections.
Revenues: Total Food and Beverage Sales: 2024 Budget $3,327,980 – 7.1% increase The limited increase to Catering and the loss of the food truck revenue restricts the potential for more revenue in 2024. 2023 Projection $3,107,180- 7.1% Increase
2022: 3,084,419 – 9% increase 2021: 2,824,653 - 70% increase 2020: 1,630,291 - 22.3% decrease 2019: 1,992,690 - 2.8% increase 2018: 1,882,117 - 14.5% increase
Assumptions •
Members will continue to use the facility at or above 2023 ’s usage rate. • Golf usage will remain at similar levels as 2023. • Catering bookings will remain at similar levels as 2023. • There will be some price increases related to commodity price increases and comparison pricing.
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