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Food Cost Case Solution
| Solution Id | Length | Case Author | Case Publisher |
|---|---|---|---|
| 1887 | 714 Words (4 Pages) |
A Word File
As jack has arranged for a Management Training Program as part of the training, where the trainees are responsible of receiving, as well as, processing the daily deliveries, certain problems might arise. For instance, being new to the process, they might overstate the cost of the deliveries. They might lose the bills or forget to make payments. These are few of the errors that new people are likely to make when they are in the process of learning, until and unless an old employee is monitoring them very carefully. In this case, no one is managing the trainees; therefore, trainees might not be questionable about how they are processing the deliveries.
Following questions are answered in this case study solution
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Why might the food cost percentage be rising?
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Do you think that the beverage cost percentage might be rising or falling? Why?
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What issues might Jack be discovering with the inventory levels in the central stores and Preparation kitchen stores?
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What are the main problems that you might associate with having the trainees in charge of receiving?
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As the F & B manager name 5 actions that you would take immediately to improve the situation.
Case Analysis for Food Cost
1. Why might the food cost percentage be rising?
One of the reasons for the food cost percentage to rise can be that as the trainees are managing the processing of the deliveries on a daily basis, they might not be doing a good job on their own, considering that they are new. They might end up overstating the costs which can lead to rising cost percentage. Moreover, the economy can be a general reason for the rising cost as inflation leads to rising price levels. Also, as standards determine food costs, having proper, realistic standards are essential because unrealistic standards can lead to food cost percentage increase. In this case, Jack is flexible when it comes to the utilization of food items by managers of outlets.
2. Do you think that the beverage cost percentage might be rising or falling? Why?
The beverage cost percentage might be rising. This is because Jack has allowed managers to fetch the items from stores, and has also allowed outlets to use the preparation kitchen. Jack’s flexible attitude might lead to laxity is standards; therefore, which is one major reason for rising beverage cost percentage.
3. What issues might Jack be discovering with the inventory levels in the central stores and Preparation kitchen stores?
Jack has made arrangements with the chef that the 5 outlets will collect items directly from the preparation kitchen. From this information, it can be stated that inventory levels in the Preparation kitchen stores will be lower on a daily basis as compared to the inventory levels in the Central kitchen.
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