Finance Management in Small Business Restaurant in Ireland - Dissertation Example

Download file to see previous pages The role of The Restaurant Association of Ireland has been also included in order to several contributions in the context of financial management. The research methodology section has evaluated the ways of data collection for this study. For this research, a questionnaire survey and focus group discussion has been used for collecting primary data from the financial managers in the chosen restaurants of Ireland and restaurant owners. It was found that these restaurants do maintain systematic accounting statements and the restaurant owners closely monitor the financial statements, transaction records, and inventory that remains in the restaurant.

Due to fewer funds, the owners forecast sales per unit and cost and accordingly allocate their funds. Though it was found that the small restaurant owners in Ireland do follow financial management approaches to make the business a success, it was recommended that a yearly audit is done through an external auditor to maintain transparent financial records and also involve the employees while taking financial management decisions, which affects all the other departments in the restaurant.

CHAPTER I: INTRODUCTION
1.1 Background
This section would be evaluating the trends in the restaurant industry around the world. Further a focused analysis of the restaurant industry in Ireland would be done. Apart from this, financial management in small businesses would be briefly discussed in order to introduce the readers to the theme of the research study.

1.1.1 Global Trends in Restaurant Industry
In this era of a busy lifestyle, where individuals have little time to spend preparing meals at home, going out and eating in restaurants has become a usual practice. An increasing number of people have started to compare the price, and nutritional value of the menus on the internet before even visiting restaurants (Smith, 1992; Andersen, 1993). This proves the level of competition that has increased in this segment. According to the research study by the Global Industry Analyst Inc., the global market of restaurants will reach $2.1 trillion by 2015 (Penton Media, Inc., 2013).

It has been also stated in the report that this industry is growing at a steady pace, though it has been seen that due to financial crunch or economic slowdown the demand for taking ways has increased more than sitting at restaurants and taking meals. This has also infused growth in the fast food restaurant, snack bars, and cafe segment (Knowles, Diamantis, and El-Mourhabi, 2004). Small restaurants are generating more profitability than large ones. The major reason might be that these small restaurants are offering popular menus, using fresh ingredients as they sell in small volumes, and offering dishes at lower prices because these are mainly takeaway food joints, so the operational cost is less (Stickler, 2011; Mill, 2007).

1.1.2 Restaurant Segment of Ireland
The food prepared from outside, which is also called convenience food is an integral part of the Irish society and economy. The year 2001 recorded an increase of 12 percent from €841 million (Kotler, 2002). ...Download file to see next pages Read More