Concerns of Jason on Country Club
As a new member of the finance committee in Country Club, Jason with the help of his experience from his successful restaurant, he could quickly notice that something was wrong in the club’s operations after going through club’s budget for the coming year and the previous figures from the club’s food and beverages outlets. Jason’s main concern was as follows:
Food costs in the club. Jason thought that the food costs in the club were very different from the food cost in his successful restaurant. The food cost at the club is running at 42 percent compared to Jason’s thriving restaurant, where food coasts run at 28 percent, and Jason thinks this could be part of the problem. Jason is concerned with food waste and a lot of time spent preparing various special dishes. For example, Jason thinks the duck takes a lot of time to prepare. If the duck is not ordered, the chef has to throw some or all of it away, and Jason thinks it is an expensive waste.
The use of fresh ingredients was a concern to Jason, the use of fresh ingredients that are expensive to purchase compared to frozen ingredients, which can be frozen and still have the same quality. If ingredients are bought in bulk and frozen, this can be cheaper. Lack of consistency of F&B sales volume at the club also poses a concern to Jason as he thinks there must be the consistency of F&B sales volume, as that is evident in his successful restaurant.
To respond to Jason’s concern, Steve should review the percentage cost of food at the club to ensure the percentage lowers to match that of Jason’s successful restaurant. Steve should also ensure special dishes that are expensive and takes a lot of time to prepare nare only prepared when ordered to avoid costly waste. Steve should consider the use of frozen ingredients in the club rather than expensive fresh ingredients. Steve should find a strategy to ensure the losses in the club are resolved and then ensure consistency of sales in the club.