• 1$ of extra fixed costs = 1$ of extra sales?

    A silly thought, “Does one dollar of extra fixed costs needs one extra dollar of sales to recover it?” A logical answer is “one dollar“.  What if I would tell you that by far this is not true? What????  I am dump? A Very Interesting Use of Contribution Margin (CM) What is Contribution Margin (CM)? Contribution Margin (CM) is a very valuable financial tool in variable costing.  It’s highly used in menu engineering but it can also give answers to several other interesting financial ... Continue Reading

  • Are Cash Outflows and Expenses the Same?

    Introduction The purpose of this article is to shed light on the meaning of the terms: expense and cash outflow from an accounting perspective.  More specifically, it discusses the similarities and differences of these terms within a business context.  In addition, it uses examples in order to elaborate clearly this challenging issue for working professionals and students. Definitions Expense: The value of the inputs (e.g. food and beverages) that are being used for revenue-generating activities. Cash outflow: A cash payment a business makes to ... Continue Reading

  • Income Statement (P&L) Video Tutorial

    This is a short video of my 3+hour online finance course posted on udemy.com. Sign up for the entire finance course at 50% off for only $10 ... Continue Reading

  • Cost of Goods Sold (COGS)

    This video is about: what the cost of goods sold is and how it’s calculated. It highly relates to restaurants, Food and Beverage (F&B) operations within hotels, SPAs and other operations that sell goods. Sign up for the entire finance course at 50% off for only $10 ... Continue Reading

  • Which Hospitality Business Should I Buy?

    Considering Cost Structure Before Investing In A Hospitality Business Have you ever thought of the importance of the cost structure before making an investment decision? Do you know how cost structure may affect profitability? Frequently, people may prefer to acquire an existing restaurant rather than starting one from scratch since it has an established clientele.  However, before you make a decision to buy a restaurant, you need to consider several factors.  One of them is the restaurant’s cost structure. What Is The Cost Structure? Cost structure ... Continue Reading

  • What is Equity? (Balance Sheet)

    This video is part of my 3+hour online finance course on Udemy dealing with the equity section in the balance sheet. Sign up for the entire finance course at 50% off for only $10 ... Continue Reading

  • Cash Accounting: Recognizing Revenue and Expenses

    This is a short video of my 3+hour online finance course posted on udemy.com. Sign up for this online finance course at 50% off for only $10 ... Continue Reading

  • How Can I Value A Hospitality Business?

    Owner Benefit: A Valuation Method for Small and Medium Size Hospitality Businesses You are the owner and manager of a small restaurant, hotel, spa or other hospitality operation and you are thinking of selling your business.  But, now, you are facing several dilemmas. How much should I sell my business for? Do I really know the financial benefits I receive from my business? Is it only the profits I get from it? How do I determine its fair value? Do I need to hire a ... Continue Reading

  • Welcome to The Finance for Hospitality Blog

    A learning ‘hub’ for hospitality finance This site aims at creating a hub for existing or potential hospitality owners, working professionals, people changing careers into the hospitality industry and of course, people or students who are interested in learning and keeping themselves up-to-date with finance. This site is a finance hub since it aims to include a variety of resources, such as blog articles, videos, working financial templates, online courses, personal tutorials, and consultation services and occasionally, webinars that relate, mainly, to small-and-medium-size but also to larger hospitality ... Continue Reading

  • Analyzing Financial Data

    This is an introductory video on some methods for analysing financial information including: variance analysis, trend analysis and vertical analysis with the use of examples and available working files. Sign up for the entire finance course at 50% off for only $10 ... Continue Reading