Cost Control and Financial Management in Food and Beverage Industry

FOOD AND BEVRAGES

Table of Contents
Introduction......................................................................................................................................2
Analysis of Interview.......................................................................................................................2
Front House Operations Cost Control.........................................................................................3
Back House Operations Cost Control..........................................................................................3
Financial methods.............................................................................................4
Appendix........................................................................................................5
References......................................................................................................6
1

Introduction
The food and beverage industry is the one that changes quickly with the changes in taste and
preferences of modern society. The people nowadays are more into trying and getting attracted
towards the new things (Wagner, and Meyr, 2015). In their mission of getting an exciting life
style, the food and beverages company play a vital role to offer them best quality food. Be it a
small local café or be it a luxurious hotel, the food and beverage industry finds its way at every
place.
The main aim of the interview conducted with the manager was to get details regarding the cost
management and financial management practices used by the Food and beverage industry.
Further, the report also presents analysis of the details of interview to have a clear picture
towards cost control in the hotel industry.
Analysis of Interview
The Food and the beverages industry is the one which has a different role in the expansion of
economic opportunities as it is subject to human life as well as organizations profitability
(Weygandt, Kimmel and Kieso, 2015). This industry is intended to have a systematic functioning
and utilization of the available resources (Motherway, and Vargo, 2017). To get a more detailed
picture of the operations and cost control of this industry, an interview was conducted with an
aim to find out the different cost control used in front and back house operations. The interview
was with the manager of the medium level restaurant which is very popular in its area. While
having an interaction with the interviewee, he stated that recently there are number of
restaurants and cafes opening in their area and this, in turn, gives a rise in the competition within
them. Further, it was also noted that withan increase in competition, the restaurant is facing
various challenges and the manager has to deal with all these challenges which may also incur
some cost. The restaurant does not alone constitute the hotel, but the banquet hall and bars are
also a part of the food and beverage sector (Weygandt, Kimmel and Kieso, 2015). Generating
income and incurring cost on this and maintaining a balance in both, are the prior roles of the
manager.
2