An establishment serves on average 165 meals per day and operates ...

[jwb375]

An establishment serves on average 165 meals per day and operates 360 days a year. Although business was brisk, the manager was concerned that the level of profit was very low.
 
  Therefore, the manager implemented a waste control program in the kitchen and reduced food cost expenses by .15 per customer. 1. What is the total of cost savings for this restaurant? 2. What would be the total cost savings if management was able to find a way to reduce costs by an additional .10 per customer?

Question 2

Susan and her business partner Ryan sat at the kitchen table. They were reviewing a franchise agreement, discussing the pros and cons of opening up a franchise restaurant.
 
  Susan waved at the pile of papers and said Look, if we open up a franchise, we have to do everything their way. We have to run the front of the house their way. We have to cook only items on THEIR menu exactly the way they tell us to. We won't have any chance to be creative and try out new ideas. Ryan replied But that's the whole point The guys running the chain have already figured out what works. Customers go to these restaurants because they know exactly what they're going to get. The whole point behind all of those rules is to make sure that we give the customers a consistent product. Plus, we know what we're getting in to. We have an idea of what our labor and foodcosts will be going in to this. There's a lot less guessing. I hear you said Susan, But I'm pretty sure we can figure out how to make a good product and control our costs running an independent operation. 1. How can standardization and consistency help managers control restaurant and foodservice operating expenses? 2. What are the benefits of product consistency for customers and for managers?

[komodo7]

Answer to Question 1

1. 165 x 360 x .15 = 8,910
2. 165 x 360 x .10 = 5940 + 14,850

Answer to Question 2

1. Standardization and consistency lead to lower labor and food costs. Standardization enables employees to better apply production standards. In addition, standardization and consistency lead to better production planning and lower level of food waste.
2. Product consistency leads to higher customer satisfaction because each time a customer visits a restaurant, he/she enjoys the same product quality. This, in turn, leads to a higher level of customer loyalty. The benefit of consistency for managers is that higher customer satisfaction means less time spent on guest complaints, which leaves more time for managers to focus on operations.

[jwb375]

Both answers were spot on, thank you once again

[komodo7]

Great! Please up vote