When a family-owned restaurant began receiving poor online reviews, the manager introduced food-quality training for kitchen staff. The training costs $1,20...
Question 1 Report
When a family-owned restaurant began receiving poor online reviews, the manager introduced food-quality training for kitchen staff. The training costs $1,200. The manager expects fewer meals to be wasted and hopes that satisfied customers will return. The restaurant's purpose is to make profit while providing reliable meals.
(a) Identify one cost of the manager's decision. [1]
(b) Explain one way training could increase the restaurant's profit. [2]
(c) Which business objective is linked to customers returning to the restaurant? [1]
(d) Calculate the minimum monthly saving needed if the training cost is to be recovered in 6 months. [1]
Answer Details
(a) One cost is the $1,200 cost of food-quality training. [1]
(b) Training can help staff make fewer mistakes and waste less food. This reduces costs. It may also improve meal quality, so customers are more satisfied and sales may increase. Either route can increase profit. [2]
(c) Customers returning is linked to customer loyalty. Increasing sales or improving the restaurant's chance of survival are also acceptable linked objectives. [1]
(d) The training cost must be recovered over six months:
\[\frac{\$1200}{6}=\$200\text{ per month}\]
The minimum monthly saving needed is $200 per month. [1]
Download The App On Google Playstore
Everything you need to excel in your exams
