Reference no: EM133151473
Case Study - Restaurant Reality Workers
A large restaurant and banquet facility located in a major city was experiencing a food cost percentage increase every week. The volume of business had been consistent, there were no significant price increases from suppliers or distributors, the dining room and banquet managers and chefs had been long-term employees, tight management controls were in place, and nothing seemed out-of-the-ordinary except for the increasing food cost percentage. A central kitchen serviced the restaurant dining room and banquet facility. Something mysterious was happening. The general manager reviewed the inventory par amounts, requisitions, POS guest checks, banquet sales, and purchases for the dining room and banquet departments. The meat and seafood purchases had been increasing, specifically 6-ounce filet mignon steaks, 10-ounce NY steaks, and lobster tails. Those were the items that did not balance: customer orders, requisitions to the central kitchen from the storeroom, and purchases. Upon further analysis, the requisitions and purchases were accounted for, but something was happening in the kitchen. The product items requested and delivered to the kitchen did not all get sold to dining room or banquet customers. A significant amount of those items was missing.
Additionally, the dining room manager noticed an increase in the purchase for Cabernet Sauvignon. Similarly, those were the items that did not balance: customer orders, requisitions to the central kitchen from the storeroom, and purchases. Upon further analysis, the requisitions and purchases were accounted for, but something was happening. The product items requested and delivered did not all get sold in the dining room
The dining room and banquet managers along with the chefs were furious and determined to find whoever was responsible. But the immediate issue was to identify how the items were being taken out of the kitchen refrigerators. There were no surveillance cameras in the kitchen, so the general manager began walking through the kitchen, the refrigeration area, all the way to the loading and receiving area at the rear of the building. He was looking for something, anything that would solve this mystery. As he was standing in that area, he noticed 12 cases of empty imported beer bottles that would be exchanged for full cases with the beer delivery scheduled for later that day. Two of the boxes were marked with a small black X, which raised his curiosity.
He pulled those boxes out and found randomly placed steaks and lobster tails packed among the empty beer bottles. Part of this mystery was solved. The chefs began watching the dishwasher, who was also responsible for cleaning and wiping down the refrigerators during his shift; an older, slightly mentally impaired man who would not do something like this on his own. When caught in the act of putting steaks and lobster tails in anempty trash bag and taking it to the loading and receiving area, he said that the liquor storeroom attendant would then do the rest. He further said that the liquor storeroom attendant told him that they weren't being paid enough for their work and this was a way to earn some extra money. The beer truck driver was selling the steaks and lobster tails for cash that he would split with the liquor storeroom attendant and the dishwasher. The mystery was solved. Although alcohol beverages were not stolen, the people entrusted with the security of those items were responsible for the theft of expensive food items, which resulted in losing their jobs and having criminal records.
Please help me to answer the questions?
1.What is the relationship between beverage and food cost control?
2.What control measures can you identify?
3.Identify breaches and areas of weakness
4.How would you correct these?
Sources: Food and Beverages and Labor Cost Control