Assignment:
Imagine you have been recently hired to review a food and beverage operation as part of a larger business. The operation has been in business for several years, but has not been managed well. The previous manager was never really sure if they were making a profit, breaking even, or a loss. For the sake of simplicity for this case study, the following menu listing is collapsed into categories using averages. Prior to critiquing any component of products, pricing, or operations you must first determine if the operation is currently sustainable. With your training and expertise, you know that the first step is to determine the total operating costs for the operation. Using the information below, determine the total costs/expenses for a typical in-season month. The first category of expenses you will need to calculate will be the direct cost of the items you sell, commonly referred to as Cost of Goods Sold (COGS). For each below, calculate the cost of one item, then multiply by average units sold (please do not get hung up on individual numbers).
Cold sandwiches (numbers average per sandwich)
Bread; $2 per 40 slice package, meat/cheese; = 0.22 per sandwich, other toppings = $0.12. per sandwich Average sold in a week = 300
Hot/grilled sandwiches
Bun; $4 per 24 count, meat; average $3 per pound, ¼ pound per sandwich, other toppings = $0.18 per sandwich. Average sold in a week = 345
Sides
[We'll keep it simple] = 1.05 each Average sold in a week = 615
Beverages
Bottles = 0.48 (average of all sizes) Average sold in a week = 575
Fountain = .33 (includes cost of cups/lids/straw) Average sold in a week = 350
Beer (no wine or spirits)
Domestic cans = $0.87 each Average sold in a week = 500
Craft cans/bottles = $1.25 Average sold in a week = 175
Domestic Draft = $0.60 Average sold in a week = 225
Local Craft Draft = $1.15 Average sold in a week = 185