The Duck and Drake is a successful, privately owned 'free house' pub with an annual turnover of RM400,000; 60% of the turnover is wet sales (beverage), 30% is food (using rather ad hoc menus) and the remaining 10% is from gaming (pool and dart machines). As owner-operators they view the turnover at the end of their second year as successful and have lived well off the business including most of their own food and beverage requirements. They are unaware of exactly how the sales revenue is made up by each component and what margins they make. They have also not seen the need to introduce any systems for controlling stock or purchases, relying instead on their own experience, an annual chat with their accountant where they look at the purchases against revenues and a family environment of honesty. A brief look at the accounts identifies the following:  Beverage sales RM240,000 cost of sales RM115,000  Food sales RM120,000 cost of sales (including for own use) RM54,000  Gaming income RM40,000  50-50 share scheme Although successful in the eyes of the owners this business is not performing as well as it could. A new member of the restaurant staff has given the following feedback to the owners for the past couple of weeks gained from talking to the customers whilst serving them. 

1. We don't come here as often as we would like because it is hard to know what's still going to be available on the menu, when we arrive, and it's embarrassing when one has to guess! 

2. I like to have a steak when I am out but I don't have them here anymore, they are so unreliable. 

3. I hope the wine I have ordered is not that supermarket wine I had last time, it had their brand on the label and was four times the price! 

4. Well I haven't been here since Christmas; I wasn't very well after that turkey dinner. Advise the owners on what procedures they should adopt in terms of purchasing and storage that would mitigate these customer comments and generally improve the performance of the business.