Why Might the Food Cost Percentage Be Rising - Essay Example

The beverage cost percentage is obtained when the beverage bottle’s cost is divided by its selling price multiplied by 100. The beverage cost percentage is rising because of the increased production cost and decreased selling. The awareness of the harmful ingredients in beverages and the global economic problems forced consumers to reduce their drinking habits as much as possible. As a result, the beverage cost percentage is increasing day by day.

What issues might Jack be discovering with the inventory levels in the central stores and Preparation kitchen stores?
Jack might be facing problems in maintaining adequate inventory levels in the central stores and preparation kitchen stores because of the problems in the reception and supply of goods. From the case study, it is evident that Jack is allowing the outlet managers and supervisors to take goods from the stores, outside of normal store operating times. Such a habit would allow managers and supervisors to misuse their freedom. When items are dispatched outside the normal dispatching hours, it is difficult for Jack to record all the store operations properly.

What are the main problems that you might associate with having the trainees in charge of receiving?
Trainees definitely may not have the necessary skills to maintain an adequate inventory in the stores all the time. It is necessary to take the inventory of goods in the stores and in the kitchen periodically to know the details of available stock against the consumption of items. It is necessary to purchase more goods when consumption increases and decrease the purchasing of goods when consumption decreases. Experience and skill are necessary to balance the store activities against the kitchen activities. It is easy for kitchen managers to mislead the trainees with the help of wrong data. Since trainees are inexperienced, kitchen managers can force the trainees to allot more items than required for kitchen operations.

As the F & B manager name 5 actions that you would take immediately to improve the situation
As an F & B manager, the first action I would take to improve the situation would be to stop of allotment of goods outside the normal operating hours of the stores. Secondly, I would ask the company to arrange weekly meetings with store managers and kitchen managers to discuss the problems and to improve the situation. Thirdly, I will not provide independent charges to the trainees under any circumstances. Fourthly, I will ask the company to take action to decrease the food cost percentage and beverages cost percentage. Finally, I will take action to reduce the wastage of processed or unprocessed food items. Read More