Restaurant manager Sam has just presented below the operational results of the restaurant to the owner John.
Question:
Restaurant manager Sam has just presented below the operational results of the restaurant to the owner John. The results are presented as below. (10 marks)
Fiscal year | ||
Aug 2018 – July 2019 | Aug 2019 – July 2020 | |
Sales | $3,560,770.00 | $3,650,230.00 |
F&B Cost | 31% | $1,168,073.60 |
Labour Cost | 33% | $1,241,078.20 |
Sam has proudly said that his management effort has led to increase in sales. However,
John remembered that as in August 2019 all the selling prices were increased by 6%. At the same time, all salaries were increased by 8% to increase attractiveness to new employees and to keep present employees from leaving.
John is asking you to help analysing the performance by evaluating sales variances%, F&B costs% and labour costs% with known information in comparison to the previous year’s results and explain the results to him.
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw