Jason’s concern on the Club operations and Steve response
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Jason’s concern on the Club operations and Steve response
Jason’s primary concern is on the way Country Club operations are being conducted. As a member of the finance committee and owner of a successful restaurant in the city, Jason knew that something is wrong with the club’s operations by just looking at the club’s budget for the coming year and the previous year’s financial figures.
After a tour of scouting all the activities that take place in the club, Jason can identify various things that are pulling back the club’s success. Jason points out that food costs at the club are 42 per cent while in his restaurant, which is running food costs successfully at 28 per cent. He suggests this could be part of a problem in the club. Jason thinks that the ducks prepared by Robichaud take a lot of time to prepare, and at most times, they end up being a waste cost the club a lot. Jason also thinks the club uses a lot of money to purchase fresh ingredients and suggest ingredients can be bought in bulk as they will cost less and be frozen. Jason is concerned by the wide variety of ingredients in the store that not in the club’s menu, hence he thinks the club needs to revise the ordering process. Jason thinks the club may need to raise prices to offset losses and find a way to ensure sales volumes are consistent.
By responding to Jason’s concern, Steve should ensure that all the operations in the club are undertaken with the motive of realizing profit in the club. Steve should ensure that orders that are time-consuming and result in club incurring losses are removed from the menu or are only prepared once ordered. Steve should also ensure that no ingredient order should be made that is not on the menu. Steve should look for a strategy to offset losses, and by ensuring all the areas mentioned by Jason are reviewed, I am sure the Country Club sale will be consistent.