MRS301: Analyzing Budget Deficits and Leadership in Restaurant Service

This report analyzes the budget of William Blue Dining, highlighting the discrepancy between the actual and budgeted amounts and its impact on achieving the company's objectives, such as purchasing a wine refrigerator. It identifies increased expenses as a primary cause of the revenue shortfall. The report proposes strategies to overcome the budget deficit, including determining spending choices, developing accurate plans, preventing future financial challenges, and seeking professional assistance. It also discusses the importance of leadership approaches, recommending Laissez-Faire and democratic leadership styles to improve management and employee performance. Furthermore, the report emphasizes the significance of service experience, dividing it into pre-service, current service, and post-service stages, and provides recommendations to enhance customer satisfaction and increase spending. The conclusion summarizes the findings and underscores the importance of effective budgeting, leadership, and service management in achieving the restaurant's financial and operational goals.

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Managing Restaurant Service
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Contents
Introduction......................................................................................................................................1
Strategies to Overcome Budgeted Deficit.......................................................................................1
Leadership Approaches...................................................................................................................2
Recommendations............................................................................................................................3
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

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Introduction
The purpose of this paper is to analyse the budget of William Blue Dinning. There is a difference
between the actual and the budgeted amount that has created difficulty in the future objectives of
the company. The organization aims to purchase a $2000 wine refrigerator but due to difference
in the budget, William Blue Dinning failed to attain this objective. Looking at the actual and
budgeted performance of the company, it can be evaluated that the company expected to attain
revenue of $ 225, 000 but due to change in the expenses of the company, the revenue of the
organization decreased. There are some expenses that reduced while some increased than the
expected budget like, the cost of equipments was expected to be $6000 but the company
expended $4600 in this field. The cost of rest expenses increased that resulted as changes in the
budget. In the current situation, it can be said that the company needs to analyses their expenses
and cut the irrational one because it is subsequently reducing the profit margin of the company
(Klarner, Phillips & Muckler, 2012). Resulting in which management is facing difficulty in
completing the defined objective. So, it can be said that the current situation of the company is
not according to the expectations.
Strategies to Overcome Budgeted Deficit
 Determination of spending choices: The company should determine their spending
choices in the environment so that they can effectively monitor the areas where the
company is spending excessively. It is important to determine the areas of excessive
expense so that the company can control them and grow. Further, if the company will
effectively monitor their choices then they will effectively save money for future
expenditure that will result in the growth of the company. The strategy of determination
of spending choices will make the organization spend on the places where they have to
and not on the activities that provide unproductive results to the company (Cogan,
Taylor, Wieland & Wolters, 2013).
 Development of accurate plan: There might be a possibility that the company had not
created an accurate plan due to which at the end there was a difference in the expected
and the actual budget. So, the restaurant should strategies their activities in such a way

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that the create the expected budget in the most reasonable and actual way. Under this
process the management should look at all the present variable that can change the
functioning of the company and then record them in the budget plan.
 Preventing future financial challenges: many times unexpected situations occur due to
which the management faces difficulty to run their business smoothly according to the
defined strategies. So, the experts should study the external factors at a proactive basis
and tackling the challenges by initiating flexibility. If there is increase in expenses in one
category, the management should reduce the expenditure from another category so as to
equalize the end result according to the expectations. Overcoming the financial problems
is not difficult but setting clean priorities for the business and preserving the plan is the
most difficult part that the companies find now a days (Milkman, Mazza, Shu, Tsay &
Bazerman, 2012).
 Professional Assistance: In case of changes in the actual as well as budgeted plan, the
organization should attain professional assistance and guidance of the experts so that they
can smoothly run the business in the market. Professional assistance will help the
management in successfully initiating the actions so that the company can save
themselves from the external changes. Professional experience will help the management
to analyse the depth of the issue, look at the important facts, and initiate actions
accordingly. Further, professional assistance will also help in accurately preparing the
expected budget for the company.
Leadership Approaches
For a restaurant business like William Blue Dining, the most significant factor for its success in
operating the business is leadership styles and skilled used by its managers. As mentioned above,
this fine dining restaurant has faced the issues related ineffective leadership approaches and
skills. The waiters complained about the leadership and administration during their service hours.
The comments of TripAdvisor stated that customers do not find management whilst they were
dining at William Blue Dining. It has a huge impact on budget deficit and overall outcome of this
restaurant setting. There are various leadership and supervisions approaches that a restaurant
setting can practice to overcome different challenges (Prowle, 2014).

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One of the most significant leadership styles is Laissez-Faire leadership style. By using this style,
the leaders will be able to delegate most of the responsibilities to subordinates. At this restaurant,
the top managers are not available in service hours so this leadership style can help to overcome
different issues. The manager at William Blue Dining needs to know that when to let the staff by
themselves and when to control the things. To apply use this leadership style, it is important for
this restaurant to train the employees effective so they will need less supervision. This type of
leadership approach will allow the restaurant’s staff and servers to work their own, having higher
level of confidence. They will be more committed to fulfil their duties (Sun & Anderson, 2012).
Another leadership style is democratic leadership style that can assist this restaurant to overcome
the challenge of budget deficit and negative outcomes. By using democratic leadership,
restaurant’s managers can give some authority to its middle level employees and its floor staff
during service hours. It can help them in managing the dining operations in restaurant. Under
this, the managers can take the opinions and ideas of subordinates in its decision making process.
This style will help the leaders to supervise its employees regularly. At William Blue Dining,
democratic managers can let the staff handle irritable customers or have their style of taking food
orders and deliveries (Pettinger, 2017).
Using above approaches, this restaurant will be able to deal with different issues and manage its
budget for different operations.
Recommendations
Service experience is the most important aspect for the business as it helps the business in
analysing the expectations of the customers and effectively acting upon them as well. Further,
there are many ways with which an organization can effectively increase the spending of the
customers on the services of the restaurant below mention are the pre, current and post service
experience of the dinners:
 Pre service experience: As it is said that first impression is the last impression so it is
important for the management of the restaurant to initiate good first impression. If the
initial impression of the restaurant is laid good on the customers then they will expect the
restaurant will definitely provide good service experience to them (Imran & Anis-ul-

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Haque, 2011). The expectation of the customers is built on the basis of pre service
experience only. So, if the staff treats the customers with care and give them attention
then the customers will also form good pre service experience.
 Current service experience: Current service experience of the customers is formed by the
food and drinks that the take. On the basis of the quality and the delivery time of the
order, the customers forms an impression of the restaurant. If the initial dish served is
good then the customer will willingly spend more but if the first dish ordered is not
served properly then the customers will not give any further orders to the restaurant.
Attention of staff and management is very important when the customer is attaining
current service experience.
 Post service experience: post service experience is mostly dependent on the above
mentioned two service experience. If the staff treated the customers properly when they
entered in the restaurant and while delivering the order then the customers will attain
good service experience and will initiate repeated sales in the environment. After attain
the current service experience, it is important for the staff to ask for the feedback so that
they can understand the customer point of view and make changes accordingly (Long and
Welham, 2016).
Conclusion
Thus, in the limelight of above mentioned events, the fact should be noted that the above
mentioned report discussed about the budget of the company William Blue Dinning. The details
explained that there was a difference in the expected and the actual budget due to which the
company failed to achieve the defined objective in the target market. This appeared as a problem
for the company because it reduced the retained earnings of the company and increased the
expenses as well. Thus, the further part of the report included strategies with which the restaurant
can effectively minimize the difference between actual and the expected budget. With the help of
such strategies, the company can effectively prepare and authentic budget for the restaurant that
is feasible and reliable as well. Along with this, the leadership styles are also discussed that
would help the company to eliminate the identified challenges along with recommendations to
the company to manage the service experience of the customers at three different stages.

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References
Cogan, J. F., Taylor, J. B., Wieland, V., & Wolters, M. H. (2013). Fiscal consolidation
strategy. Journal of Economic Dynamics and Control, 37(2), 404-421.
Imran, R., & Anis-ul-Haque, M. (2011). Mediating effect of organizational climate between
transformational leadership and innovative work behaviour. Pakistan Journal of
Psychological Research, 26(2), pp-183.
Klarner, C. E., Phillips, J. H., & Muckler, M. (2012). Overcoming fiscal gridlock: Institutions
and budget bargaining. The Journal of Politics, 74(4), 992-1009.
Long, C and Welham, B. (2016) Organising a strategic phase in the budget process.
https://www.odi.org/sites/odi.org.uk/files/resource-documents/11065.pdf
Milkman, K. L., Mazza, M. C., Shu, L. L., Tsay, C. J., & Bazerman, M. H. (2012). Policy
bundling to overcome loss aversion: A method for improving legislative
outcomes. Organizational Behavior and Human Decision Processes, 117(1), 158-167.
Pettinger, T. (2017) Policies to reduce a budget deficit. Retrieved from:
https://www.economicshelp.org/blog/6011/economics/policies-to-reduce-budget-deficit/
Prowle, M. (2014). The role of budgeting systems in supporting strategic management in the
public sector. In Developments in Strategic and Public Management (pp. 21-40).
Palgrave Macmillan, London.
Sun, P. Y., & Anderson, M. H. (2012). The combined influence of top and middle management
leadership styles on absorptive capacity. Management learning, 43(1), 25-51.