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Restaurant Analysis

You are one of the star managers for a large chain restaurant company. Senior management has asked you to take over an underperforming restaurant. Your first order of business is to evaluate and provide solutions to the following problems in the restaurant.

1. Food cost: Has inflated to over 50%.
2. Labor: Not enough skilled employees.
3. Sales: Sales have plummeted by 25%

Evaluate the three areas of concern and provide three solutions for each.
Describe the importance of food cost, labor and sales in a food and beverage operation. Support your description with concepts addressed in the materials provided in this course.

Solution Preview

Evaluate the three areas of concern and provide three solutions for each.

1. Food Cost - Food costs can rise for both external and internal reasons. Some of the external reasons might be simply the cost of ingredients. For example, if a particular ingredient is out of season, it may cost more to purchase it and to use it in the dishes. Or, if an ingredient is affected by major weather conditions, such as a drought or freeze, it may be more expensive to get the ingredient. Some of the internal reasons might be employee theft or waste in the kitchen. For example, if employees are taking certain ingredients to be used for their own use, this can increase the costs of food due to needing to purchase it more often and in larger quantities.

One way to address the concern of food costs becoming inflated is to ensure proper portion control. "By streamlining their portion sizes, chain restaurants ensure healthy profit margins" (Mealey, 2012, para 4). Portions can be controlled by using specific sized serving utensils in the kitchen, food scales, and consistent storage sizes and amounts. ...

Solution Summary

A discussion regarding a case scenario of a restaurant manger facing an underperforming restaurant including food cost issues, labor issues, and sales issues. Also, a discussion regarding potential solutions for each area. 726 words, 1 reference.

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