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Asian 5 is a modern casual dining restaurant in Adelaide. Asian 5 provides five different Asian cuisines at one venue, such as Chinese, Japanese,
Asian 5 is a modern casual dining restaurant in Adelaide. Asian 5 provides five different Asian cuisines at one venue, such as Chinese, Japanese, Korean, Indian, and Malaysian. This unique concept has been popular and attracted many in-house guests and local customers to the restaurant. You are the newly appointed Director of Food and Beverage [DOFB] of Asian 5. After analysing the financial performance over the past 5 years, you realised that Asian 5 is experiencing downturn in their business. Asian 5 Performance Review (2016-2020) Asian 5 Performance Review 2016 Total Revenue $3,285,000 2017 $3,520,000 2018 $3,290,000 2019 $3,190,000 $2,610,000 2020 Food & Beverage Costs 36.80% 35.20% 33.50% 31.30% 30.10% Labour Cost 39.80% 40.90% 41.60% 42.30% 42.80% Profit percentage 15.80% 14.35% 16.70% 19.80% 21.30% Average check $68.53 $70.13 $76.85 $80.36 $85.94 Cover 32,355 34,238 29,325 26,038 25,530 Total labour hours 37,908 40,952 41,150 42,816 43,299 Productivity (Revenue per Labour hour) Productivity (Covers per Labour hour) $86.66 $85.95 $79.95 $74.50 $60.28 0.85 0.84 0.71 0.61 0.59 Customer Feedback -Value for money 78.50% 81.50% 73.50% 70.30% 63.20% You identified some positive and negative issues from the table above through your analysis and they are: Decrease in total revenue especially from 2018 onwards. Decrease in food and beverage cost percentage. . Increase in total labour cost percentage. Increase in average check Decrease in total covers especially from 2018 onwards. Decrease in productivity for both 'revenue per labour hour' & 'covers per labour hour'. Decline in customer satisfaction around 'value for money' from 2018 onwards. Gradual increase in profit percentage from 2018 onwards. The executive management has requested you to provide recommendations to improve the restaurant's financial performances. Question 1: Expected reply of 150 words equivalent 10 marks Evaluate why Asian 5 is experiencing low productivity on both 'revenue per labour hour' and 'covers per labour hour'. Highlight possible reasons and propose at least five (5) recommendations to improve productivity. Question 2: Expected reply of 150 words equivalent 10 marks a) Describe the reasons why the customer feedback on 'value for money' has decrease from 2018 onwards. Compare and contrast the average check with the food cost percentage and provide your explanations (6 marks). b) Propose four (4) recommendations to improve the score for 'value for money' and overall guest satisfaction (4 marks). Question 3: Expected reply of 150 words equivalent 10 marks With the labour costs increasing each year from 2018 onwards, it is shocking to see profit percentage growing as well. Discuss the underlining reasons and make your recommendations for Asian 5 to achieve a continuity in business success.
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