Cost Control in Darbar Indian Restaurant: An Interview with the Head Chef

This presentation discusses the cost control methods used by the head chef of Darbar Indian Restaurant in Canberra. It includes an interview with the chef, who shares insights on maintaining cost control in front and back of house operations, as well as the financial control methods used in daily business operations. The presentation also covers topics such as restaurant costs, costing methods, and food and beverage control systems.

FOOD AND BEVERAGE
MANAGEMENT
Hospitality enterprise

THE HOSPITALITY INDUSTRY
 The Latin word “hospitare” means to receive guests.
 The service industry
 The industry includes restaurants, hotels, food
services, tourism and event planning
 The industry refers to the connection and the process
of the relationship among the hosts and the guests
 Includes the organization or the companies that
provide food and drink to the people who are far away

DARBAR INDIAN RESTAURANT
 Darbar Indian Restaurant is located in
139/24 Lonsdale Street, Braddon ACT
 Its name Darbar Means king’s place,
traditionally a courtyard or meeting
place for royals to dine
 It is known for serving authentic and
traditional delicacies from the diverse
Indian Cuisine along with dishes that
include their personal innovative twists.
It is known for its use of original and
authentic Indian spices in their dishes
Source: (Darbar
2019)

THE INTERVIEWEE
 The head chef of Restaurant - Chef Vinay
 Makes the best use of locally present Indian
ingredients and provides the customers with
traditional Indian food
 Buy the spices used from the shops of Mode3 building
in London streets newest Indian Establishments to
prove the extent of its authenticity
 Conduction of the interview process included relevant
questions regrading the industry and the costs of the
operations

WHICH TYPE OF HOSPITALITY ENTERPRISE
DOES THE INTERVIEWEE MANAGE?
Source: (Lynn and McCall 2008)

INTERVIEW QUESTIONS
1. Which type of the hospitality enterprise do you
manage?
2. How do you maintain the cost of the operations?
3. How do you manage the cost control of the front of
house operations?
4. How do you manage the cost control of the back of
house operations?
5. Which of the financial control methods do you use in
the daily business operations?

MAINTAINENCE OF COST
 Creation of a Maintenance Schedule and Emergency
Fund
 Repair and Maintenance Costs
 Effective Budget Strategy
 Budgeting and tracking tools
 $275,000 or $3,046 per seat cost

FRONT OF HOUSE OPERATIONS
 Part of the restaurant where your customers order and
dine.
Source: (Scott 2018)

HOW DOES THE INTERVIEWEE MAINTAIN COST
CONTROL OF THE FRONT OF HOUSE OPERATIONS
 Ensure to plan ahead so that there is no unplanned cost
 Ensuring that there is proper training of the employees to
avoid the cost of any mistakes during customer handling
 Ensuring the tracking of restaurant reservations to avoid
the cost of last minute conflicts
 Improvement from sales data and analytics
 Ensure proper handling of the crockery to avoid the cost of
the accidental breakage

BACK OF HOUSE OPERATIONS
 Maintenance of the relation with the guest behind the
scene
 Encompasses all the behind-the-scenes areas that
customers will not see
Source: (Rana 2017)

HOW DOES THE INTERVIEWEE MAINTAIN COST
CONTROL OF THE BACK OF HOUSE OPERATIONS
 Ensuring that enterprise don't spend too much money on paying food
ingredients
 Ensuring that no extra Cost is spend on the special Indian ingredients
and spices
 Ensuring reduced Cost of cook like efficient use of electricity, gas and
other equipments
 Ensuring that there is no reduced waste and theft
 Dishwashers, sous chef, prep chef and maintenance of kitchen crew
 Ensuring that the quality of the staff is not hampered

FINANCIAL CONTROL METHODS
 Controlling food and labor costs are two of the most
important tasks
 With proper menu planning, sales forecasting and
employee training it is important for the executive chef
to prevent overspending on staff and supplies and still
provide excellent quality dishes and service
 Using of variety of planning, monitoring and
techniques for evaluation
 Continues manage of expenses for ensuring profit
without compromising the quality

RESTAURANT COSTS
Restaura
nt Cost
Control
Restaurant
Cost Control
through Yield
Management
Controlling
Labour Costs
by Reducing
Employee
Turnover
Purchasing
Raw Materials
on Credit to
Reduce Costs
Tracking and
Managing
Inventory to
Ensure Food
Cost Control
Tapping
Internal
Thefts and
Pilferage that
will help in
Restaurant
Cost Control
Controlling
Wastage
through
Portion
Control

RESTAURANT INTERNAL CONTROLS
 Vetting up of Employees and Contractors
 Reconciliation of Payroll and Staff Records
 Maintenance of Consistent Cash Management
 Spread of the Financial Responsibility
 Reconciliation of immediate Bank Statements

FINANCIAL CONTROL METHODS THE INTERVIEWEE USE
IN DAILY BUSINESS OPERATION
 Performing of food calculations
 Evaluation of menu planning
 Reduction of theft and wastage
 Efficient schedule of the staff
 Cross training of the staff
 Improving of the quality of the staff

COSTING METHODS IN RESTURANT
 First-in, first-out (FIFO) - This inventory costing method
includes the earlier purchasing of the ingredients with
near expiry date for avoiding wastage.
 Last-in, first-out (LIFO) - This method of costing includes
selling of the last purchased goods in the original price
 Weighted average cost (WAC) – The goods purchased
receive the same valuation irrespective of the time of
purchase.
WAC = ( Total Cost of Sitting Inventory ) / (Number of the
Units)

FOOD AND BEVERAGE CONTROL SYSTEMS
 Helps in introduction of the financial rigour to the
establishment of the dining of the catering
 Giving better idea regrading the food flow through the
restaurant
 Enabling of the effective stock control
 Nutritional and financial considerations
 Development of the manufacturing costs and values of
the products of the resturant

INTERNAL SOURCE
Source: (Magnini and Kim 2016)

THE PROCESS
Source: (Filimonau and Krivcova 2017)

FUTURE PLAN FOR COST
REDUCTION
Source: (Ozdemir and Caliskan
2014)

CONCLUSION
 We conducted a one to one interview session with the
head executive chef of the restaurant, Chef Vinay . The
restaurant has recently modified its menu and is
looking forward for the development of its
management of the cost control system.

REFERENCES
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Filimonau, V and Krivcova, M 2017, 'Restaurant menu design and more responsible consumer food choice: An exploratory study of managerial perceptions', Journal of
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Lynn, and McCall, 2008, 'The Effects of Restaurant Menu Item Descriptions on Perceptions of Quality, Price, and Purchase Intention', Journal of Foodservice Business
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Magnini, P and Kim, S 2016, 'The influences of restaurant menu font style, background color, and physical weight on consumers’ perceptions', International Journal of
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https://www.verywellfit.com/quick-guide-indian-restaurants-3495711>.
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Zomato 2018, Darbar Indian, viewed 20 December 2018, <https://www.zomato.com/australian-capital-territory/darbar-indian-braddon-act/menu#tabtop>.
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