Office If you've already bought it. Mudeford Ferry Bistro is part of a chain of restaurants...

 

Transcribed Image Text:

Office If you've already bought it. Mudeford Ferry Bistro is part of a chain of restaurants on the South Coast. The owners appointed a new manager, Roberto, for the financial year ended 31/12/2020 who made the following changes: Reduced the menu options so that meals could be made with fresh local produce. The previous menu had extensive options with a lot of frozen food being used, which reduced training staff required in preparation. Invested in a BBQ area outside the restaurant for alfresco dining, increasing the number of tables available. Introduced a new pricing policy which was loosely based on material cost plus 450% to cover labour, fixed costs and profit. • Reduced opening times per day from 10 hours to 8 hours, 362 days a year. Roberto's popularity amongst the Mudeford customers is clear, with sales revenue up On the prior year. Despite this, you are slightly concerned with the bottom line result and have decided to compare 2020 to the prior year: Y/E 31/12/2019 £'000 Y/E 31/12/2020 £'000 Sales Revenue £618 £855 Variable Costs Staff Costs Leasehold Costs £85 £155 £257 £155 £125 £44 £127 Depreciation £80 Cost of Sales £409 £619 Gross Profit £209 £236 Allocated Head Office Costs £190 £220 Operating Profit £19 £16 Fixed Assets Current Assets Current Liabilities £122 £7 £190 £9 £35 £55 Operating Data: Beverage Sales Food Sales Staff (Full time equivalent) £352 £371 £484 10 £266 7. Leavers Joiners Absence Hours 4 230 267 Average Customers Per Day 44 40 SO Metres 115 135 1369 Words English (UK) MacBock 20 F3 D00 F1 F2 F4 @ 23 $ & 2 3 p 4 6 7 BbCcDdEe AaBbCcD AaBbCcDdEe AaBbCcDd AaBbCcDdE AaBbCcDdEe Normal Title No Spacing Heading 1 Heading 2 Subtitle Required: a) Write a report to the CEO which: i. Includes a schedule/table which compares the restaurant's performance in 2020 with the performance in 2019 (this may include a comparison of Key Performance Indicators, key financials and any other data as required) [18 marks] ii. Suggests reasons why the restaurant barely broke even in 2020 despite the apparent success of Roberto's strategy. [18 marks] i. Suggest and fully justify actions Roberto could take to improve profit while adhering to the fresh local produce offering. [14 marks] [Total 50 marks] (End of Section B) Office If you've already bought it. Mudeford Ferry Bistro is part of a chain of restaurants on the South Coast. The owners appointed a new manager, Roberto, for the financial year ended 31/12/2020 who made the following changes: Reduced the menu options so that meals could be made with fresh local produce. The previous menu had extensive options with a lot of frozen food being used, which reduced training staff required in preparation. Invested in a BBQ area outside the restaurant for alfresco dining, increasing the number of tables available. Introduced a new pricing policy which was loosely based on material cost plus 450% to cover labour, fixed costs and profit. • Reduced opening times per day from 10 hours to 8 hours, 362 days a year. Roberto's popularity amongst the Mudeford customers is clear, with sales revenue up On the prior year. Despite this, you are slightly concerned with the bottom line result and have decided to compare 2020 to the prior year: Y/E 31/12/2019 £'000 Y/E 31/12/2020 £'000 Sales Revenue £618 £855 Variable Costs Staff Costs Leasehold Costs £85 £155 £257 £155 £125 £44 £127 Depreciation £80 Cost of Sales £409 £619 Gross Profit £209 £236 Allocated Head Office Costs £190 £220 Operating Profit £19 £16 Fixed Assets Current Assets Current Liabilities £122 £7 £190 £9 £35 £55 Operating Data: Beverage Sales Food Sales Staff (Full time equivalent) £352 £371 £484 10 £266 7. Leavers Joiners Absence Hours 4 230 267 Average Customers Per Day 44 40 SO Metres 115 135 1369 Words English (UK) MacBock 20 F3 D00 F1 F2 F4 @ 23 $ & 2 3 p 4 6 7 BbCcDdEe AaBbCcD AaBbCcDdEe AaBbCcDd AaBbCcDdE AaBbCcDdEe Normal Title No Spacing Heading 1 Heading 2 Subtitle Required: a) Write a report to the CEO which: i. Includes a schedule/table which compares the restaurant's performance in 2020 with the performance in 2019 (this may include a comparison of Key Performance Indicators, key financials and any other data as required) [18 marks] ii. Suggests reasons why the restaurant barely broke even in 2020 despite the apparent success of Roberto's strategy. [18 marks] i. Suggest and fully justify actions Roberto could take to improve profit while adhering to the fresh local produce offering. [14 marks] [Total 50 marks] (End of Section B)