Restaurant Management Hw 2.docx

Restaurant Management Hw 2.docx - 2-4 What happens to a...

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2-4 What happens to a foodservice establishment when control is lacking? The operation may still function, but it seems to have a life of its own. Personnel “do their own thing,” which may not serve the best interests of the operation. There may be little basis for decision making since hard data on which to base decisions cannot be found. Costs may skyrocket while the manager looks in vain for ways to bring them back to realistic levels. Thus, the process of control is directly related to the process of planning. To exercise adequate control, an operation must know where it is going or what its objectives are, which of course means planning. Control becomes the comparison of actual performance with the planned goals and objectives and an appraisal of any discrepancies. 2-5 What is a contribution margin and why is it important? The portion of sales that is available for overhead and profit. It’s important as it describes what remained after sales or income is after subtracting the variable cost.
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