A new fast food store is using a balanced scorecard to monitor its operations. The store’s vision is to provide customers with low-cost meals and a high-quality eating experience. The company’s strategy has been to focus on keeping prices low by minimizing food waste, and keeping customer wait times at the counter and drive-through window as low as possible. Information for the last two months follows. The store currently operates 12 hours per day, from 11:00 AM to 11:00 PM.

REQUIRED

A. Classify each performance measure according to one of the four balanced scorecard perspectives.

B. Analyze the change in each performance measure. Give one possible reason for any changes.

C. Which performance measures need further investigation? Explain.

D. When an organization focuses on one strategy, problems sometimes arise in other areas.

Do the balanced scorecard results provide evidence of possible deterioration in any operational areas? Explain.

Transcribed Image Text:

August $18 $7 68 3.2 minutes 2 minutes 4 cars 43 $278,640 $45,000 $2,400 Jul Average sale (total revenue/total invoices) Average variable cost per sale Average pounds of food waste per day Average customer wait time at counter Average customer wait time at window Average number of cars in wait line Average customers per hour Total revenue Total labor cost Utilities cost (electricity and phone) Employee turnover $6 70 3 minutes 1.5 minutes 3 cars 45 $226,800 $44,550 $2,100