Cost Controls—Operations

This week we will focus on the cost controls for operations. You will continue to add to your Cost Control Template started in Week 3 Assignment 1 & Week 4 Assignment 1. In a minimum 250 word overview in a Word document following MLA format, outline a minimum of five different procedures and strategies that will be implemented to control costs in operations for your business concept. Here are some areas to consider:Labor, which is a significant part of the cost to operate a business. Some of the areas to consider when controlling labor could be scheduling, training, and accountability of time/hours worked.Theft is another area that impacts the bottom line of a business. There should be control strategies to prevent internal and external theft.Maintenance, cleaning-related costs, and utilities.Developed a minimum of five different procedures and strategies on how to control costs in operations for the business concept.Met word count and followed MLA guidelines for writing style, spelling, grammar, and citation of sources.
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Pua ;1
Yu Chen Pua
Robert Donato
Sustainable Purchasing and Cost Control
April 18
BACK-HOUSE COST CONTROL TECHNIQUE
Introduction
Cost control, a crystal element of the business that draws a close coherence with cost
management, resource planning, and budgeting basically to close the possible pitfalls of success
and growth. The essence of Cost control is to keep the “contrast fresh” to survive market
impediments while being unique in service delivery (Feinstein, Andrew and David pg, 902). Cost
control monitors expenditures and performance against the current business progress. In fact,
distinct variance in budgeting and stringent policies should effectively achieve minimum cost
with higher revenue return. Significantly, expeditious work progress acts as a yardstick to
address the question on “What has” “What is” and “What remains” to be done acting as a
remedial strategy to minimize expenditure.
Strategies and procedures implemented to Cost Controls in Back of the House
Planning, ordering, and purchasing
Back of the House is the central administrative room where flawless planning and execution take
place before serving of the food to the customer’s table. Primarily, labour scheduling helps to
categorically assign duties in each department using a structured module to avoid friction among
the crew (Charlebois, Amy and Mike pg, 282). Cost control is achieved through orderly
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assignment and preparation of the client requisition from the front end (Charlebois, Amy and
Mike pg, 279). Additionally, General Manager should be able to have inventory ordering
schedule to create a constant supply in the restaurant to avoid the stock run-out cost.
Consequently, negotiation terms of discount with suppliers especially in batch patches not only
reduces cost but has an indirect benefit of goodwill and flaring brand restaurant image through a
maintained loyalty.
Inventory and Waste Accountability
Inventory order and security help reduce waste and theft as it uses monthly and annually stock
traffic schedule for every purchase order. General Manager will be able to fast track the
emergency product supplies and even develop a budget plan for recipe standardization and cost.
Notably, food cost control has evaluative action plans to ensure back house has an efficient,
operational and theoretical food cost expectation (Baraban, Regina and Joseph pg, 56). It helps
establish whether the enterprise has achieved its break-even profits and a forecast budget
estimated for the next purchase order of inventory. Indifferently, cross-training of workers
eliminates accidental pilferage especially in the execution of workers cycle rollout program.
Each department has a master training work module used as a yardstick to report any delicacy,
shortfalls or opinions concerning recipe used in the restaurant. Moreover, an interactive platform
between staff and management harmonizes relationship and even gives staff ability to negotiate
terms of engagement especially when faults occur (Baraban, Regina and Joseph pg, 76). It is also
advisable to ensure adequate investment in restaurant back house machinery to aid in
refrigeration and preservation of perishable spices or products. Significantly, to promote
customer loyalty, the restaurant should use machines that can fasten up preparation of food thus
creating a flawless operation.
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Recipe standardizations and costing
It’s one of the innovative cost control strategies since it creates an efficient purchasing procedure
which relates to the quantity of production fetched from a standardized recipe (Gregorashpg,
452). Additionally, it provides an accurate and consistent data for food cost control when the
same quantity and ingredient is used in recipe budget (Gregorashpg, 446). Consequently,
customer satisfaction creates a predictable yield especially when appealing service texture is
adopted. It increases food quality and improves employees’ confidence due to familiarity with
the recipe hence management can evade lawsuit liability instigated by the customer due to health
concern of service effects.
Cost control in the Front of the House
It acts as a welcoming frontier through which customers get exposed to all services and products
offers by the enterprise. Owners should create an inviting view through the entrance door that
auspiciously addresses the theme of the restaurant in the exquisite way of natural ambiance
(Baraban, Regina and Joseph pg, 70). The restaurant can increase sales margin by adopting
highly scalable welcoming maids who not only warmly welcome guest but make them have a
binding feel to the restaurant. Additionally, under circumstances when requisition order isn’t
ready, clients should be served with desserts to buy time before serving meals. Potential
restaurant advocates for giving extra-palatial service to make clients have hospitable atmosphere
especially working at some hotel spots without hurry. As a cost control and strategy of increasing
sales, they are often giving standardized packs or credit line serviceable after a specific period.
Access to entrainment services, meeting benches, over the counter beverages, promotional offers
and discounts are just some of the few positive revenue tapping strategies (Gregorash pg, 442).
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Most classic restaurants have adopted private taxi program to escort clients to their residential
area and making charges on credit line.
Cost control in the Operations
Labour section is the strength of the restaurant, especially when skilled, certified and competent
staffs hired to service delivery. Hospitality is an ingredient that lures the customer into the
restaurant when a timely service delivery becomes the main scope of the restaurant. Moreover, a
work plan creates individual responsibility and commitment (Charlebois, Amy and Mike pg,
289). Cost control saves restaurant wastage, theft and even promote the trust with the
management. Incentive packs, leaves, and allowance promote corporate restaurant responsibility
when staff members can have quality time from work as it minimizes supervision. Additionally,
a point of sale reduces communication breakdown between the kitchen and front house,
encourages punctuality to avoid staff punching in at odd hours and even act as a yardstick to
determine the fast selling menus. Some restaurant also monitors the value of tips given, to make
a daily adjustment in their service delivery to attract customer loyalty (Charlebois, Amy and
Mike pg, 290). Consequently, it also the integration of affordable menu pricing enables
customers to order meals according to their credit line limits.
Conclusion
Back and Front of the house cost control strategy significantly aid to reduce expenditure and
increase revenue in the long-run. Importantly, a restaurant enterprise with after sale service
creates an opportunity for clients to give feedback on the level of service. It provides customers’
accustomed to different taste and preferences with a different sample of products and services
majorly to act as a market test for growth and expansion scheme. Lastly, both scenarios help fill
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in the possible gaps in revenue especially when enterprises carry survey and research with the
intention of keeping abreast with the fast-changing service industry.
Work Cited
Baraban, Regina S., and Joseph F. Durocher. Successful restaurant design.John Wiley & Sons,
2010.
Charlebois, Sylvain, Amy Creedy, and Mike von Massow.”Back of house”–focused study on
food waste in fine dining: the case of Delish restaurants.” International Journal of
Culture, Tourism, and Hospitality Research 9.3 (2015): 278-291.
Feinstein, Andrew Hale, David Vondrasek, and Chart House Restaurants.”Learning relationship
between occupational satisfaction and administrative commitment among restaurant
employees.” Work 702 (2006): 895-1795.
Gregorash, Bill J. “The current Canadian cafeteria: nutrition for thought.” Worldwide Hospitality
and Tourism Themes 9.4 (2017): 442-450.
Pua 1
Yu Chen Pua
Robert Donato
Sustainable Purchasing and Cost Control
April 25
Cost Controls Front of the House
The front of the house is the first areas or actions that the customer gets exposed to when they
visit the restaurant. Therefore, it is essential for the front-of-the-house to communicate the theme
of the business. Achieving this goal requires the restaurant management to put in place strategies
that not only attract customers but reduces costs. The outdoor seating including the deck and
patio tables should be arranged in such a manner that gives the customers best atmosphere during
their stay at the restaurant. The business can increase sales transactions and accountability
through controlling what they issue. For instance, the management can cut on the linen cost
expense through the issuance of kitchen towels at the start of the week and keep the others
locked. It will increase the time needed by employees to serve customers. Sign sheet in the
storage area will increase accountability. It can also ensure that it keeps the daily stock list to
maintain proper pars. Continuous monitoring of the stock list is essential in controlling inventory
and ordering costs (Tracey). For example, it may reduce stock holding costs thus improving sales
transaction.
Another strategy for cost controlling the front of the house costs is ensuring that the staff
only put out what is necessary. It advocates for limiting overstocking at the front-of-the-house
which results in the use of extra inventory. The manager can use forecasts plan in determining
the number cups needed. Setting the table with more items will lead to customers taking more.
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Thus reviewing the past sales yields information on the number of coffee and iced tea to brew to
minimize waste. Furthermore, evaluation of menu planning may reduce costs. Knowing the
personal dishes cost will allow the business determine whether it belongs to their menu. Some of
the menu items may attract customers spending more income on appetizers or deserts. Therefore,
the arrangement of the list may contain such products to keep the customer busy while waiting
for their orders (Barnard). The hotel may also use vans to transport their customers to their
private places at a subsidized fee.
Work Cited
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Barnard, Mark W. “A Case study to examine the application of food cost theories in menu
pricing and cost control management within a new restaurant operation.” (2009).
Tracey, J. Bruce. “The Eight-Step Approach to Controlling Food Costs.” (2009).

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