For a manager, especially the manager of the food and beverage apartment, cost control is the most difficult and important task. Concerning about the low sales during mid-week period, the manager of the a la carte Italian restaurant decides to open “all you can eat” buffet on Money, Tuesday and Wednesday evening. This stragegy of the “all you can eat” will have an certain affect on the “Food Average Spend” for the week and also on the restauramt 's food cost percentage. Futhermore, if this keeps on going for the next few weeks, lots of cost have to re-measure, which includes: the labour cost, the different of contribution margin between buffet and a la carte, food cost and profitability, food leftover. This report will briefly discuss the cost control and the strategy that can be implied in order to increase the profitbility of the restaurant. Due to the fact that there were little customer come to the restaurant during the mid-week period, the manager come to the strategy of “all you can eat” buffet. When consider to the price of the buffet, she look at the Revenue Reports and found out that the average food sale was $37.10 and beverage was $19.80. So she decide that the buffet 's cost would be $28.90 per person and $13.50 for children. It is a good way to attract customers by lowing down the price that suitable for everyone. 'The …show more content…
As mentioned above, the restaurant has to prepare a great amount of a variety of food because 'At any buffet, there is a certain amount of tension: Will there be enough food? Will I have to wait hours to get some?... ' (Cullen 1997, p. 129-130) Therefore, the cost of food is increased. Because the cost of food is increased, the labour stay stable and the contribution margin is reduce; as a consequence the profitability will be reduce. Due to the fact the manager not only make the food cost higher, but she also reduce the selling
The shops have a pricing strategy that ensures that people with different purchasing power can find the food product that they can afford. The price of different products will range from $4 to $40. This means that the cheapest food item in Platinum pizza shop is $4 and the most expensive food item is $40. This pricing is relative below what other restaurants are charging for the same food items. This is the perfect market strategy that the shop is
After a long day in school and studying, every student needs a night off to just relax and enjoy a meal at a restaurant. In this modern time, some aspects of a restaurant can be the deciding choice. Many choose their restaurant of choice based on either those they are with, their personal, cultural appetite, their routine eating habits or their mood. Some of these preferences are similar yet others are the deciding differences. Two common franchise restaurants that pose differences are Applebee’s and Olive Garden. These two restaurants present their differences in environmental and food options causing a choice between them.
Restaurant manager is a responsible position and career which has several opportunities to accomplish. The manager has to manage the whole restaurant staff, has to be flexible in approach and promote motivation and performance among them for better restaurant productivity and profits. Complete dedication is essential to reach highest position in management and for this the person has to settle certain goals and improve the skills, values and qualities with time and market demands (Brawer eta l., 2012).
When different kinds of menu for lunch and dinner are included, there is an opportunity for attraction of more clients in the new outlet
The overall purpose of cost accounting is to advise top administration and the management team on the most suitable and cost effective methods and actions to employ based on cost, capability and efficiencies of a given product or service. It can be defined as the method where all the expenditures used during execution of business activities are gathered, categorized, examined and noted down (Horngren & Srikant, 2000). Once these numbers are gathered and recorded the information is used to determine a selling price and/or to identify possible investment opportunities. Although the principal aim or function of cost accounting is to help the business administration with their decision making and business planning process, the cost accounting data
In General, demand, supply and price are the major components of the economy in both competitive and non-competitive markets. Exchanging goods is occurring everyday and everywhere in the world so in order to maximise profit and the use of resources, companies have to know approximately the quantity of goods that customers require. This short essay will discuss the market mechanism in general and particular in food market in the United Kingdom.
From the A12 redesign proposal, it shows that the current standard cost system is unable to link the reduction in the number of parts to activity reductions and cost savings. The labor-direct-based standard cost system reflects the cost of A12 is distorted. Using the ABC system, according to the activities of A12 allocate the overhead cost to A12 that could find that the current overhead cost of A12 was overstated by the standard cost system. At last, A12 Junction Box could be identified it is an attractive and profitable product, at the same time, it demonstrates the value of ABC.
The more you are able to provide what they want, the more you should expect what you really want, namely: productivity, quality, and service”. These are the things that a manager should consider. With all the aspects that a restaurant manager needs to consider, what does a restaurant manager do to keep their staff motivated? The objective of this research is to answer this question and to give idea to potential/or present restaurant managers on how to motivate their staff effectively. This research will include ways and theories on how to motivate staff. This would be helpful for them as they can train their staff to be motivated. Not only train their staff but also train themselves on how to motivate their staff. As a result, managers, owners, employees, and also customers could benefit from this paper in the long term run and also as part of this research, 4 restaurant managers were interviewed to gather more information and to see their own perspectives about this certain topic. These 4 managers were asked the same questions and in these research, their answers are to be compared to one another and to previous researches about this
Coca Cola faces many costs when producing their products. These cost are usually categorized into variable costs and fixed costs. Variable costs are costs that vary depending on production output. Some examples of variable costs that Coca Cola incurs include labor, raw materials, packaging, and transportation and deliver cost. Raw materials are a major variable cost for Coca Cola. When production increases more materials are need to product more product therefore the cost for raw materials increases. The main raw material in all Coca Cola products is sugar which includes high fructose corn syrup, sucrose, and sugarcane. The availability of these natural resources often depend on weather conditions making for fluctuations
An evaluation of the restaurant’s strengths, weaknesses, opportunities and threats served as the foundation for this marketing plan. The plan focuses on the restaurants marketing strategy, suggesting ways in which it can build on new customer relationships, and development of new food products and targeted to specific customer groups.
Cost accounting system has two types, job order costing, and process cost system. These two cost systems are very different, almost every company uses order costing or process costing. Starbucks, is a coffee shop where citizens congregate to drink there morning coffee, study, and or socialize. Starbucks is one of the oldest and largest privately held specialty coffee retailer in the United States. (Starbucks) Their passion is to discover the flavors you love and always bring it home, delivering the look, taste and aroma of the world’s best coffee and teas. Job order costing is a very easy way in order to help Starbucks managers to know how much profit their company (Starbucks) made.
...ded once they see that the sales will be increasing and tips will be larger. Good staff will increase good public relations which will result in better business. Marketing a restaurant is the most important part in running a restaurant. If a restaurant is not marketed, no one will know about the restaurant causing it to lose money to operate forcing it to close down. Prices on the menu should always be appealing to the restaurant target market and set towards the products on the menu. It is essential that a restaurant develops its staff to the fullest, for a strong staff creates better sales and the public is pleased .
People all around the world are busy. Busy with work, school and other extra activities. No one ever has time to cook, so families are always going out to eat at a restaurant. This essay will include comparison between eating at home and eating at a restaurant in terms of the price, cleanliness, taste and service.
The problem in the foodservice sector is related to the low income of their workers. Affecting mainly the lifestyle of those who make up this system. In the United States, there are 12 million workers in
The Italian restaurant has had long term success due to the owner’s, Andy Garagallo, high level of confidence. He believes if he meets the customers’ food and relationship needs, they will come back again and again. His approach is working as the restaurant annually nets 30% profit as compared to the industry standard of 5-7%. Andy success comes from confidence, putting the customers first, being flexible, and consistency.