Marco's Restaurant: Advisory Report
1.Problem Statement
Marco’s Italian Restaurant was founded in 1986 by Marco and his wife Maria in Birmingham. The restaurant achieved profit growth until 1998 and reaching a peak turnover of £3500 in 1994. However profits had a dramatic decline every month. In 2009 the restaurant monthly lost £1800. This deficit may lead to the restaurant facing bankruptcy within the next 6 months.
2. Analysis
2.1Company Management and Structure
Marco’s Restaurant lacks a formal management structure. Manager and staff responsibilities and roles are badly defined, as Marco uses autocratic leadership style. He has complete control over everything and no one is permitted to give any suggestions or ideas even it may bring positive effect for the restaurant.
2.2Financial management
Loss
Loan £-350
Wasted ingredients £-385
Shifts £-150
Total £-885
Table 1 Marco’s loss/ month (301ENL coursework 2010-2011)
Marco’s Italian restaurant does not have a normal accounting system. That is because Marco didn’t realized how the money going and where they go to.
2.3Costs and Menu
Food cost plays a major role in food-service industry success or failure. The luxury menu and the high costs of ingredients are major reasons lead the loss of the restaurant. The complicated Italian menu confused customer and not matches the restaurant’s services and the old fashion environment. £1540(due to £385/week) wasted on stock each month is the main problem restaurant should be faced.
2.4Opening Hours and Staffing
*In the past, the breakfast and lunch provided around 30% of Marco’s turnover and profit. However, in recent years there has been a significant decline on breakfast and at lunchtime business. In this way restaurant should focusing the more profitable areas. *Besides during the pick hour manager of each department should available in the restaurant and responsible for their own roles.
*Marco and Maria running their business like a family business.
*Restaurant
Marco’s Italian Restaurant was founded in 1986 by Marco and his wife Maria in Birmingham. The restaurant achieved profit growth until 1998 and reaching a peak turnover of £3500 in 1994. However profits had a dramatic decline every month. In 2009 the restaurant monthly lost £1800. This deficit may lead to the restaurant facing bankruptcy within the next 6 months.
2. Analysis
2.1Company Management and Structure
Marco’s Restaurant lacks a formal management structure. Manager and staff responsibilities and roles are badly defined, as Marco uses autocratic leadership style. He has complete control over everything and no one is permitted to give any suggestions or ideas even it may bring positive effect for the restaurant.
2.2Financial management
Loss
Loan £-350
Wasted ingredients £-385
Shifts £-150
Total £-885
Table 1 Marco’s loss/ month (301ENL coursework 2010-2011)
Marco’s Italian restaurant does not have a normal accounting system. That is because Marco didn’t realized how the money going and where they go to.
2.3Costs and Menu
Food cost plays a major role in food-service industry success or failure. The luxury menu and the high costs of ingredients are major reasons lead the loss of the restaurant. The complicated Italian menu confused customer and not matches the restaurant’s services and the old fashion environment. £1540(due to £385/week) wasted on stock each month is the main problem restaurant should be faced.
2.4Opening Hours and Staffing
*In the past, the breakfast and lunch provided around 30% of Marco’s turnover and profit. However, in recent years there has been a significant decline on breakfast and at lunchtime business. In this way restaurant should focusing the more profitable areas. *Besides during the pick hour manager of each department should available in the restaurant and responsible for their own roles.
*Marco and Maria running their business like a family business.
*Restaurant
References: How to (2009) How To Start and Run Your Own Restaurant [online] available from[25 January 2011] Daniel J Franks (2007-2011) Restaurant Start Up Advice [online] available from[25 January 2011]