Question

25 MARKS) bay is uptown restaurant overlooking the ocean. It serves a variety of cuisines, including Italian and Continental. Most of the customers are wealthy businessmen and high profile executives, looking for a peaceful dining experience. ce buying the restaurant two years back, the sole owner, Daud Lim has carefully recorded cial data in addition to the usual financial data. He oversees the preparations himself, and is very particular about the quality of the food served. The following is the financial as well as the non-financial data based on the balance score card format: 2015 2014 RM RM Financial information Total turnover 945,000 900,000 Turnover from special event 300,000 200,000 Cost attributable to special events 230,000 120,000 Total Profit 169,000 130,000 10 Internal Business Process Average service delay at peak times 25 minutes 15 minutes Idle time 486 minutes 540 minutes Reported case for food poisoning 15 Customer Satisfaction Regular customer attending weekly Complimentary letters from satisfied customers Average expenditure per customer RM51 RM30 Learning and Growth Special theme evenings introduced New entries in the menu introduced during the year Total proposals submitted to cater for special events CONN Required: a) Comment on the financial performance of the restaurant, and compare it with the previous year by considering the financial data only. (9 marks) b) Comment on the non-financial perspective using the balance-score card approach. (12 marks) c) Comment on the overall performance of the restaurant. (4 marks)

Answer 1

1. The financial performance of the restaurants for last two years are as follows:

Financial Information	2015RM	2014RM
Total Turnover	945000	900000
Turnover from special event	300000	200000
Cost attributable to special event	230000	120000
Total Profit	169000	130000

• Total turnover has been increased from 45000RM (945000-900000) in the current year which shows an increase in 5% (45000/900000X100) when compared from the last year.
• Turnover from special event has been increased from 100000RM (300000-200000) in the current year that reflect an increase in 50% (100000/200000X100) when compared from the previous year.
• Cost attributable to special event has been increased from 110000RM (230000-120000) in the current year that reflect an increase in 91.67% (110000/120000X100) when compared from the previous year.
• Although turnover from special event has increased from 50% but cost attributable to special event has also been increased in the big scale that is 91.67% when compared from the previous year.
• Total profit has been increased from 39000RM (169000-130000) in the current year that reflects an increase in 30% (39000/130000X100) when compared form the last year.

2. The non-financial perspective of the restaurant for the last two years are as follows

Non -Financial Information	2015RM	2014RM
Internal Business Process
Average service delay at peak times	25 minutes	15 minutes
Idle time	486 minutes	540 minutes
Reported case for food poisoning	7	4
Customer satisfaction
Regular customer attending weekly	15	9
Complimentary letters from satisfied customers	4	1
Average expenditure per customer	RM51	RM30
Learning and Growth
Special Theme evening introduced	2	0
New entries introduced in the menu	2	4
Total proposals submitted to cater for special events	8	3

• Average service delay at peak times has been increased from 10 minutes (25-15) when compared from the last year which is not a good sign for the restaurants.
• Idle time has been decreased from 54 minutes (540-486) in the current year when compared from the last year that indicates the restaurant is effective in utilising the idle time efficiently.
• Reported case for food poisoning has been increased from 3 (7-4) which is just around double when compared form the previous year. The restaurant should focus to reduce the same.
• Regular customer attending weekly has been increased from 6 (15-9) which is a good sign for the restaurant. As many they attain customers it will be helpful for them to retain them.
• Complimentary letters from satisfied customers has been increased from 3(4-1) when compared form the last year. This indicates that restaurant is delivering good amount of service.
• Average expenditure per customer has been increased from RM 21 (51-30) when compared form the previous year. This means that as customer increases even expenditure also increases.
• Special Theme evening has been introduced in the current year to attract customers which is a good idea.
• New entries have been introduced in the menu but the level has not yet achieved which is there in the previous year. In this field, restaurant has not been that active and hence able to introduced only 2 new entries in the current year. However, in the previous year the restaurant has introduced 4 new entries.
• Total proposals submitted to cater for special events have been increased from 5(8-3) when compared from the previous year. This means that restaurant is effectively dealing in this case.

3. The overall performance of the restaurant:

• The turnover and net profit has been increased but the costing for the same has also been increased in the large scale.
• The rate of return in the current year has not been increased.
• With the increase in sales the profit has not been increase from that level.
• To earn the same amount of profit the restaurant should have to be more careful and active so as to deliver great amount of service to the customers.
• The manager should look after every loop holes that deliver cases of food poisoning as it create bad image for the restaurant thereby hampering the restaurant reputation.
• During peak times the restaurant should take extra care and should hire extra efficient professional so as to deliver effective services to the customers.