The "Sombrero" was originally a 45 cover Mexican restaurant in Dubai, UAE. In the first few years of operation, business was doing well and the restaurant was featuring in the major tourist guides and newspapers as a "must visit" restaurant not only for the great cuisine but also for the fantastic décor. As the business picked up the restaurant owner decided to expand, so when the opportunity appeared to acquire the lease of the property next door he did so and expanded the restaurant to a 130 seater. Things seem to be going well and the owner was certain that he would get a good return on his investment. However, the original small team could not cope with the business and the new chefs and servers did not have the rapport that a small team had. Soon the restaurant was faced with problems of stock control especially in the back area. Stock would go amiss quite often and wastage level both in food and beverage had hit an all-time high. Worst of all the management could not identify that the problem was at the bars or the cellars and had no idea as to how to resolve the issue. Some suspected theft whilst others felt it was merely bad management.
They are unaware of exactly how the sales revenue is made up by each component and what margins they make. They have also not seen the need to introduce any systems for controlling stock or purchases, relying instead on their own experience, an annual analysis with their accountant where they look at purchases against revenues.
A brief look at the accounts figures:
Food sales: $250,000 Cost of sales: $170,000
Beverage sales: $130,000 Cost of sales: $70,000
Outdoor catering: $42,000 Cost of sales: $16,000
The owner has decided to hire consultants to come up with an effective food and beverage control system that will help alleviate the problem. In his briefing to you he has suggested that money is not a problem.
Your group is to advise the owners on what procedures they should adopt in terms of purchasing, storage, inventory and generally improving the performance of the business.
Prepare a detailed business report of at least 2000 words outlining
1. What do you think are the key issues or potential problem areas with the restaurant in terms of food and beverage control?
2. Procurement process and control systems in the restaurant.
3. Describe the application of quality control principles.
4. Design a food and beverage control system that ensures that the problems are reduced or eliminated.
5. Using the Hospitality Systems concept describe, evaluate and make recommendations for improvement taking into consideration the menu, product flow and facility design.