HAT302 Food & Beverage Management: Darbar Restaurant Case Study

This case study examines the cost control strategies employed by Darbar Indian Restaurant, focusing on insights gained from an interview with the head chef, Chef Vinay. The study explores the restaurant's approach to managing costs in both front-of-house and back-of-house operations. Key areas of investigation include maintenance schedules, budgeting strategies, employee training, inventory management, and financial control methods such as FIFO, LIFO and WAC. The case study also delves into internal controls to prevent theft and wastage, efficient staff scheduling, and continuous improvement of staff quality. The restaurant's future plans for cost reduction are also considered, providing a comprehensive overview of their cost management system.

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