cost reduction for a restaurant

Best practice and Critical internal control for different industries

cost reduction for a restaurant

Postby sap » Mon Oct 27, 2014 3:29 am

How to carry out cost control
1. Interview with Chief Chef, restaurant manager and supervisor of various functions to understand the actual application of cost reduction concept for different processes. Obtain the senior management approval before doing that.
2. cost comparisons between different restaurants at different periods, against industry norm and against budget
3. Sort out critical cost, sorting by yearly value
4. prepare a list of cost drivers for each cost item. The cost drivers are elements that determine the costs
5. prepare a basis for each cost such as no of headcount x no of working hour x hourly rate to assess the necessity
6. list of alternative options /business case analysis that are necessary to assess the lowest cost options and the relationship between pricing, growth and costs for all critical costs
7. Examine contract terms on all contracts to identify all favorable terms or conditions that are missing and all unfavorable terms and contract that exist
8. Submit a proposal to senior management who can help to avoid resistance and set up motivation scheme.
sap
 
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