Description The Amazing Food Restaurant on the Gold Coast has a long tradition o

by | Feb 1, 2022 | Tourism | 0 comments

Description
The Amazing Food Restaurant on the Gold Coast has a long tradition of offering breakfast, lunch and dinners 7 days a week to its customers with a great reputation for good service and quality food. At the beginning of the year a new F&B manager had to be internally appointed to replace the current one away on maternity leave.
At the end of the financial year the restaurant reported a gross turnover of $800,000; this income from customers is represented by a 70% of food sales and a 30% of beverage sales.
A brief look at the accounts identifies the following:
Food sales
$560,000
Cost of food sales (COGS)
$315,000
Beverage sales
$240,000
Cost of beverage sales (COGS)
$112,000
The F&B manager, believes the restaurant is performing well but in reality there is very little understanding of the figures and what they represent for the viability and success of the operations.
In addition to that some negative feedback have been received by the General Manager from customers.
The following are three feedback which the GM believes are particularly troublesome and inconsistent with the reputation of the restaurant:
“We have attended at least three functions in the last few months however, we decided not to come here as often as we would like because what was ordered and organised was different from what was delivered. It is especially embarrassing when we have a business function for our guests and you cater for it, and not get what we expected”
“Food quality and presentation is inconsistent and varies considerably e.g. meal sizes are big one time and very small the next”
“The last time we had dinner here we felt ill afterward and had to go to the emergency service at the hospital”
The new Food and Beverage (F&B) manager was appointed to the job as a temporary replacement and came to this role with very limited experience. While he is aware of exactly how the sales revenue is made up by each component of the service, he does not know what margins they make. Being an inexperienced F&B manager he has decided that, there was no need to introduce a system for controlling stock or purchases, relying instead on employees’ experience. He always assumed that employees are honest and know their job.
YOUR TASK
You have been hired by the General Manager as an expert to advise him on what procedures he should adopt in terms of purchasing, receiving, storage and production that would mitigate these customers’ comments and generally improve the financial performance of the catering service. Your task for this assessment is to analyse the information provided above, critically evaluate current procedures, and make recommendations for improvement to the GM in the form of a report. In your analysis you should also consider the accounting figures presented above which will help you further understand the situation and the difficulties management is facing.

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