26 HILLS Management Accounting and Control II - Project INDIAN INSTITUTE OF MANAGEMENT INDORE

Contents
Introduction of the restaurant:26 hills ............................................................................................................... 3 Structure ............................................................................................................................................................ 3 1. To obtain raw material:.......................................................................................................................... 3

A large stock of grain,pulses,flour etc is required by the restaurant. ............................................................ 3 ....................................................................................................................................................................... 4 Other raw materials include milk, cold drinks ghee, oil,spices etc. .............................................................. 4 2. The preparation process: ........................................................................................................................ 4

Vegetables like .............................................................................................................................................. 4 After 10 am lunch preparation starts depending upon the orders. Vegetables .............................................. 4 3. Tidying the restaurant: ........................................................................................................................... 4

This comprises 2 parts-cleaning of tables and cleaning utensils. The seating area is cleaned 3-4 times everyday while tables are cleaned after every meal by customers.Utensils are segregated depending upon preparations and are rinsed between preparations.Complete cleaning is done before every meal.Used dishes are brought by the waiters to the helper who continuously uses hot soaped water to clean them ..... 4 4. Service to customers and billing:........................................................................................................... 4

Waiters take their order in note pads .The use carbon paper to get 2 copies and the table number is noted.One is maintained in the diary while the other is sent to the asst cook for preparation.After it is prepared the customer is served.The waiters wear a special uniform assigned to them.The billing is done by entering the notepad entries into the computer and taking a print.The amount is collected from the customers and given to Mr. Dharmesh who is in charge.He also greets the customers going in and out. .... 4 Other data collected: .......................................................................................................................................... 5

Introduction of the restaurant:26 hills It is located just outside gate No.2 of the IIM Indore campus. The owner is Mr. Pawan Jha It was started in 2009.The main crowd in this restaurant are the students of the campus.. It is rented 1500 sq.ft area which is partitioned into the kitchen and the sitting area. It can serve almost 40 people at a time. The restaurant employs 2 cooks ,3 waiters and 3 employees for clearing . Location Near Medicaps College A. B Road Rau, Indore, India CUISINES North Indian, Chinese, Fast Food, Continental

Structure The organisation structure is given this. Mr. Pawan supervises everything
Pawan Jha (Owner) Head Cook

Waiter 1 Waiter 2

Asst Cook Waiter 3

Cleaner 1 Cleaner 2

Figure 2 Running of the restaurant: The following are the processes involved in running the restaurant. 1. To obtain raw material: A large stock of grain, pulses, flour etc is required by the restaurant.during harvesting season they may be available at low prices but it is difficult to stock

them due to space constraints and the chance that they may rot. However the restaurant sources them from local stockists at discounted prices .Raw materials to be used for the next 2 weeks are bought and st ored at the owners own residence. Some stocks are stored as it is while some like wheat require further processing(flour).Once used up the stocks are replenished. The suppliers are paid their dues 2 months after the materials are sourced. The restaurant obtains vegetables from the local mandi wholesalers .Both off season and seasonal vegetables are obtained since they use cold storages. Fresh vegetables are obtained daily and bills are settled on a monthly basis. The head cook receives the vegetables after appropriate quality checks Other raw materials include milk, cold drinks ghee, oil, spices etc. 2. The preparation process: Vegetables like potatoes, onions, garlic are washed, peeled etc. Rice and pulses need to be washed and soaked in water. The south Indian items like idli,dosa etc require pre-preparation like coconut chutney, dosa-batter ,uttapam batter etc.The head cook estimates the quantities required and supervises the preparation of the asst. cook.The waiters may help in the preparation After 10 am lunch preparation starts depending upon the orders. Vegetables like potatoes, cauliflower, capsicum etc, are washed-cut and fried and rice, chapatti batter is prepared.This is done to minimise cooking time and faster delivery of orders . 3. Tidying the restaurant: This comprises 2 parts-cleaning of tables and cleaning utensils. The seating area is cleaned 3-4 times every day while tables are cleaned after every meal by customers. Utensils are segregated depending upon preparations and are rinsed between preparations. Complete cleaning is done before every meal. Used dishes are brought by the waiters to the helper who continuously uses hot soaped water to clean them 4. Service to customers and billing: Waiters take their order in note pads .The use carbon paper to get 2 copies and the table number is noted. One is maintained in the diary while the other is sent to the asst cook for preparation. After it is prepared the customer is served. The waiters wear a special uniform assigned to them. The billing is done by

entering the notepad entries into the computer and taking a print. The amount is collected from the customers and given to Mr. Dharmesh who is in charge. He also greets the customers going in and out. . Other data collected:

Fixed CostItems 8 tables 40 chairs Crockery Gas Burner Exhausts Containers Pressure Cookers Grinder 3 Kwh Electric Connection Water Cooler + Aquaguard Fans Electric Fittings Deposit for 2 Gas Cylinder Fridge and 290 liter freezer Air Cooler 1.5 Tonne Cold Drink Carrots TotalFixed Costs Varying Expenses incurred Shop Rent License Shop Act Certificate Salary Cook

Cost 5,000 150 15,00 0 5,000 750 3,000 2,000 6,000 10,00 0 15,00 0 1,500 5,000 5,000 20,00 0 20,00 0 400

Units 8 40 1 1 2 1 1 1 1 1 6 1 1 1 2 8 Frequenc y 12 1 1

Total Cost 40,000 75,000 15,000 5,000 1,500 3,000 2,000 6,000 10,000 15,000 9,000 5,000 5,000 20,000 40,000 3,200 2,14,700

Cost 25,00 0 3,000 1,000

3,00,000 3,000 1,000

Monthl y Yearly Yearly Monthl y

6,000

12

72,000

Assistant Cook Kitchen Helper cum Cleaner 3 Waiters Electric Bill Materials Rice Dal Oil Masala Vegetables Staff Facilities Dress Cleaning Meals Gas Cylinder Cost of Capital Other Expenses Total per year Total per month

4,000 2,500 4,500 12,00 0 11,00 0 7,000 5,000 3,000 10,00 0

12 12 12 12

48,000 30,000 54,000 1,44,000

Monthl y Monthl y Monthl y Monthl y Monthl y Monthl y Monthl y Monthl y Monthl y Monthl y Monthl y Daily Monthl y Monthl y

12 12 12 12 12

1,32,000 84,000 60,000 36,000 1,20,000

600 9,000 500 5,108 6,000

12 12 365 12 12

7,200 1,08,000 1,82,500 61,296 72,000 12,10,99 6 1,00,916

Sales on an average are around Rs 8,000 a day on weekends and around Rs 4,000 on weekdays. This translates into on an average revenue of around Rs 1,52,000 per month.