Brown Stone Restaurant is located in an historic building within the historic business district of a mid-size city. The menu is designed to accommodate often hurried lunch customers as well as leisurely dinner guests who prefer to order a full-course meal. The average lunch check is $23, and the average dinner check is $38; brick oven pizzas range from $19 to $24.

Sales are pretty good; however, the manager has realized he is still finding it difficult to cover all his expenses. George the manager has called a meeting with his staff. The store clerk outlines that he conducts his monthly inventory however, though the products are used, the sale does not match the income and are much lower than what is being spent on purchases.

What may be wrong?

2. Poor management - not calculating food cost
4. Not logging waste
6. Too large portions
8. Stealing of products
10. Mismanagement of production processes - no tracking of product usage.
12. Lack of monitoring expenses/costs