La Grande Alliance Restaurant Francais

I.Costing System for the Restaurant

Assumptions:

1. 3 dishes per person for dinner (1 appetizer or soup, 1 entrée, and 1 dessert). The probability of ordering each of the three dishes is equal.

2.Cost of lunch is based on percentage of cost of goods sold

3.Salaries:

*Managerial/Supervisory Positions (1 for lunch and 1 for dinner)

*Captain

*Chef and Maitre d'hotel Dishwasher is 1 for lunch and 1 for dinner.

*Sous chef cooks dishes with difficulty level of 3, 4 and 5 (as a moderately experienced chef).

*Apprentice chef cooks dishes with difficulty level of 1 and 2 (as a moderately experienced chef).

*Sous chef and apprentice chef all works on prior presentations. This would take 30% of their time. Labor cost for preparation time was weighted by percent of preparation time of each dish.

*Average of 1.75 busboys for dinner.

*Based on 2 seatings for dinner, average number of waiters for dinner is 5

4.8 hours of work per day, 1 week = 7 days, 4.3 weeks per month.

5.Wastage is 10% of raw material cost. This is assumption is based on the fact that there is no available information on wastage per dish.

Cost Pool I (Cost Driver - per plate)

1.Salaries of:

*Chef

*Maitre d'hotel

*Captain

*Busboys

*Dishwashers

*Waiters

2.Materials, breakage and supplies

3.Depreciation of kitchen equipment

4.Advertising and Promotion (first 6 months)

5.Allocation for general overhead

Cost Pool II (Cost Driver - time/total available time of sous chef and apprentice chef)

1.Sous-chef

2.Apprentice chef

II.Unit Cost per Dish

III.Selling Price

IV.Information that should be collected and measured

1.Measure wastage per dish per day and reason for wastage.

2.Number and type of dishes ordered/served for lunch and dinner ordered per day (indicate date and day).

3.Number of meals prepared per day for lunch and for dinner.

4.Price of Raw Food

5.Where/How did patrons learn about the restaurant. What marketing material was used?

6.Price of competitor's meals

7.List of breakage

8.Number of customers per lunch and dinner per day

9.Size of parties

10.Hours worked of staff.

11.Track productivity of personnel to determine and/or forecast future needs. Monitor preparation time per dish and number of customers per waiter.