CFO at Hotel Sahara Star, Chintan Shah, tells Restaurant India about the industry trends with reference to accounting and finance.
Chintan Shah, who hails from a family of Chartered Accountants, was recently appointed as the Virtual CFO at Hotel Sahara Star. Chintan Shah has previously worked with finesse clients and helped them out in achieving their extraordinary expectations in the fields of taxation and assurance practices.
Chintan Shah completed his Charter Accountant course in 2006 and is also an elite member of The Institute of Chartered Accountants of India (ICAI). He is also a Certified and Trained Valuer and Arbitrator.
Chintan Shah, Virtual Head of Finance, Hotel Sahara Star, positively feels that “Strategizing right, zero-based budgeting and proactive implementations are few arrows in the armour for Sahara Star.”
In an interview with Restaurant India, CFO at Hotel Sahara Star, Chintan Shah, speaks about the restaurant industry trends with reference to accounting and finance.
The role of a virtual CFO is to maintain the financial well-being of the Hotel. The role comes with the baton of responsibility. In my tenure, I have brought about smooth functioning in the accounting team along with helping them connect with the legal and IT team too. Speaking on the financial front, I have improved stakeholder relationships along with implementing strong policies wherever needed.
The future plans for Hotel Sahara Star can be bifurcated into long term and short term. The long term includes revamping the business structure, starting a sports club and setting up a solar and renewable plant. The short term goals are more finance-oriented along a few internal and external policy and relationship-building activities.
The growth has been very good. Mostly, the work has been all due to proper communication within the team and also with the other departments at Hotel Sahara Star. The most important growth that has been the one that is within the company and it has made a strong foundation for the years to come.
Strategising is an important aspect of teamwork, to make this team a success we have chalked out an action plan that has been created carefully and keeping in mind the importance of a financial department. Ideas are an integral part of plans, for the same we holding regular brainstorming sessions.
As said earlier, the growth in the company has been good, both in terms of numbers and efficiency. The sales growth has increased by 43% and the occupancy rate has gone up by 18%. We have also seen an improved level of operational productivity. These numbers have motivated us to work harder and improve ourselves to reach better levels.
There are two sides of every coin, each and everything will have pros and cons. The pros of having Hotel restaurants are that you can have a proper set of audience and giving them a better quality of service. Profits and losses can be borne by all the restaurants together, also the marketing budget will be better. Cons of this can be lowered creativity, lower revenue and also marketing forms basis for the overall development of the hotel and not for an individual outlet.
Revenues are raking higher in the Industry, however, the speciality restaurant industry cycles are not more than 1000 days; the said business will have to re-invent and re-engineer their business plans accordingly. The returns of investment will drop if the bar is not set high.
Accounting: Automation and Robotics are taking shape in the Restaurant Industry, thanks to high-end net-based technologies being developed and disrupting the traditional ways of accounting.
Finance: End to End Supply Chain Management system with zero inventory holding and pilferage costs Is the fast-moving trend in finance, also loans are now easily available to businesses. Artificial Intelligence is used for predictions and forecasting of revenues.
There are quite a few trends that are upcoming in the hospitality industry. The pay per use concept has evolved with the all-day check-ins and check-outs. Also, with the advent of AI, there will be minimal human intervention. Hospitality is now growing to become a place of networking, business and will not only be limited to entertainment.