Student Name : Harsh Soni

Student Id : 21467133

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The aim of this presentation to analysis the
RMT restaurants operations and
recommend the restaurant owner to
overcome from the financial losses into
profit.
We will analyze the following factors :
food sale
Beverage sale
Wages
Marketing
Evaluate the profit for the year 2023
Also, the strategies RMT should adopt and
implement to become profitable restaurant

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 FOOD SALE EVALUATION
Standard food cost for restaurants is ( Jordan Brydges , 2019 ) 28% to Monthly Food Sale
1,80,00,000
35% vs 44.86% ( RMT food cost)
1,60,00,000

In the month of August the food sale is too high (13,703,300). RMT 1,40,00,000

1,20,00,000
have the ability to increase its food sale in other month also.
1,00,00,000

80,00,000
According to the graph December have the lowest food sale, as
60,00,000
December is the month full of celebration, where RMT should have 40,00,000

the highest food sale. 20,00,000

0
Breakfast lunch Dinner TOTAL
Possible reasons for high food cost are, wrong menu design, food
wastage, inappropriate ordering of food ( James ,2021)

Restaurant food costs are between 28 and 35% to maintain a respectable profit
margin (Baker, 2014) The RMT data shows that the food spending was 44.86 per cent,
with food sales in August as highly as possible and food spending in October as low as
any other period. RMT should treat food sales particularly seriously in December and
January, as in these two months they produce higher profit since they are festive
months in November and January. Some things that assist RMT to optimize earnings
need to modify prices. To compute a reasonable profit, RMT must limit waste, over-
portioning and other variables.

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 BEVERAGE SALES EVALUATION
Monthly Beverage Sale
7000000
Standard Beverage cost for restaurants is ( Jordan Brydges, 2019 ) 18% to 6000000
5000000
20% vs 32.62% ( RMT food cost)
4000000

In the month of May the beverage sale is too high (6,314,400). RMT have 3000000
2000000
the ability to increase its food sale in the month of June and July because 1000000
of summer sessions, beverage can increase their, by adding refreshing 0

mocktails.

According to the graph October ,November , December and January have Breakfast lunch dinner total
the lowest food sale, as this months are the peak months for beverage,
where RMT should have the highest beverage sale.

Possible reasons for high beverage cost are, wastage of alcohol, breakage of
bottles, untrained staff, inappropriate recipes (baker ,2014)

According to the normal beverage ratio, RMT should amount to 20%, which is over
half the norm of 32,62%. The reasons for this are false recipes, over proportion, glass
breakage, etc. (2017) The average sales of festivals and festivities in the following
months are low, such as in October, November and January. In the evening, RMT
should provide the customers with Happy hours. To increase sales, RMT should
include a drink with meals as a combination. While in summer the RMT sales were
very low in June and July notably in liquids, the necessity to create something
innovative and more competitive was minimal in other months.

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 AVERAGE SPEND PER HEAD
The maximum average monthly spend by head is April (total months
sales 1.39,76,800 INR/null month coverage 13,412 INR), based on
average cover calculations for the given months.

In comparison with 243 ( INR) lunch and 463 dinner ( INR) sales of
morning drinks are 93 (INR) , which are relatively low. The cost of tea
and coffee should be increased by the RMT.

RMTs should focus on their dinner since they can make a great deal of
money.

RMTs should focus more on cross - selling, analyzing sales at different

times of the day and considering what is being purchased

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The RMT ASPH may not meet the industry standard. According to the study, however,
the restaurant has to swiftly increase its ASPH, therefore losing its maximum
earnings. When ASPH grows, the income of RMT immediately increases with the
sales figures. RMT is growing in sales of beverages in all food markets; without large
increases in sales of beverages. Also, APC of food depends on the menu pricing,
lowering the price and lowering the meal quality.

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 Staff Salary Analysis WAGE COST EVALUATION

salary , The salary cost of the RMT restaurant shall be 34,96% (6,05,40,000) versus
336466.666
7 25%. ( Industrial Standard ) By decreasing costs to 25%, RMT restaurants may
400000 save 32,20,000 rupees (Brown, 2003)
300000
Several reason for the high labor costs include inadequate rostering, costly
200000 employee benefits, skilled workers short aging, high wage rates, government
100000 rules (Minimum Wages Act 1948), expensive benefits (Baker tilly, 2014)
0 salary
1 2 3 4 5 6 7 8 9 10 11 12 Staff salaries are excessively high in average (330000+) RMT may drop to
250000 for 62 restaurant cover (PayScale, 2021 )

RMT should focus on hiring session personnel, investing in technology, cross-

training, these are the suggestions RMT should pursue (Restaurant time, 2015)

Restaurant employees are essential to keep customer loyalty and provide excellent
service. Personnel turnover problems might impact other employees and might affect
the profitability of the business (Silver, 2007). Personnel remuneration, which in
RMT's instance accounts for INR 60,540,000, or around 32.1% of total sales earnings,
is also the pricey side of operating a restaurant. RMT should train its staff in various
outlets, so RMT can utilize its personnel to operate correctly and effectively in high-
schedule times. The RMT should recruit personnel from session staff on weekends
and also on festivities or events (odd workers), at low prices and at low cost.

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 MARKETING COST EVALUATION Marketing Cost Percentage
9%
8%
Marketing costs of RMT are up to 4.90% (1-3%) as per highest limit, which 8%

is higher than the industry standard marketing costs. 285,585 Rupees 7%

were to be saved by RMT ( Jerry, 2009) 6% 6%
6%
High marketing expenditures are some causes for this, celebration 5% 5% 5%
5%
support, sponsored advertising, competition pressure (Restaurant time,
4% 4% 4% 4%
2015) 4%
3%
The amount spent on marketing does not have a proper relationship with 3%

the effect on marketing. 2%

RMT should focus on leveraging social media platforms (tube, Facebook, 1%

Instagram), boost overtime occupancy by introducing happy hours, offer
0%
gratis beverages, provide a video marketing service for more than 500
rupees, and offer complementary food drinks (LIMETRAY, 2018)

Marketing costs for RMT restaurants are too high, RMT may cut marketing cost to 3%
by saving 285,585 rupees (Jerry, 2009). RMT restaurant may utilize the zero-cost
marketing approach social media platform to improve sales, with virtually all of its
users on the social media platform. Marketing helps to increase the sales of a
restaurant by establishing a client base, developing loyalty and guaranteeing the long-
term profitability of the company. RMT restaurant has primarily spent 9,519,500 on
publicity or 4.9% of total sales on its website. The figure reveals that in February the
greatest promotional money was spent, while the least in July and September.

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 The sales of 2021 to 2022 are 19,4350,000 rupees,
REVENUE GROWTH BY amounting to 15% of the total sales For the year
15% 2021-2022,
The new sale was 223,502,500 rupees

Gross profit: new sell – total selling costs

Gross Profit : 142,352,500 (223,502,500 – 81,150,000)

Gross profit is 142,352,500 in 2021

Profit of the year : 5932500
Gross profit – operating expenses
Net profit (142,352,500 - 136,420,000)
The 2021 profit is 5,932,500

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 WAYS TO INCREASE RESTAURANT SALE

CLOUD KITCHEN

MENU MANAGEMENT

MARKETING

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 BENEFITS OF CLOUD KITCHEN
Cloud Kitchens Have Higher Profit Margins
Optimized Delivery Experience
Meeting Customer Demand (revolving
kitchen, 2020)
Lower Overhead Expenses
Cloud Kitchens Have Lower Startup Costs
CLOUD KITCHEN
• Cloud kitchens are more suitable
than traditional dining rooms for
socially distant consumers.
• Cloud kitchen helps to reduce
some expenditures, such as rent
and require fewer workers on the
payroll without waiting
(Mint,2021)
• In India, taking away food choices
have boomed with coronavirus
lockdowns, eateries are closed
and dining at home is desired.
And the move towards home-
grown food remains here. And
there are indicators (Mint ,2021)

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For RMT restaurants that want to reach a broader public outside their communities
and increase sales, the cloud cuisines are a suitable alternative. In a cloud kitchen are
operated just kitchens and delivery workers. Offering no hosts or servers, RMT
significantly lowered their labor expenditures. Today, the food alternatives are known
to the customer. Cloud cuisine these days are picking a healthier menu and even
calories are available.

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Place High-Margin Items on the top
Update Your Menu for Cross-Selling
Categorize Menu Items Based on Popularity and Profit
Limit Choice to Guide Buying Decisions
Add complimentary drinks
Add buffet in breakfast
Change the breakfast timings
Add pictures to the menu (Touch Bistro
,2020)
MENU MANAGE MEN T
• Menu is One of the most
significant internal publicity
instruments utilized by a
restaurant menu to educate guests
about their experiences. Each
guest will read an instant picture
and one piece of publicity with a
clear, attractive menu to
communicate his business.
• Good menu helps the restaurant
to boost their sale (VSAG, 2019)
• RMT need to change their menu as
their menu is not up to the mark.

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RMT needs to meet local customers' requirements and tastes. In advance, the desired
audience of businessmen, bureaus and local youngsters needs to be understood. The
RMT does not have to highlight its price on the menu; just add a rupee sign; in doing
so, this customer is more likely to focus on his favorite food than on the cheaper
option. The RMT system must thus create its own menu to meet its target audience.
There will be continual changes in trends, design styles and cooking itself. All of the
descriptions of the things we select from the font are a significant component. RMT
Should update its menu to align it with the changes that customers pay attention
over time. Your consumer base should also shape this menu. The more we customize
the menu to our clients' preferences, the more they come back. This helps to increase
sales at RMT restaurants.

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 MARKETING
Introduce loyalty Discount on
programs order above 300
INR • Marketing helps the RMT to boost its sale and helps
the RMT to expend his business to another location
(Word stream, 2019)
Organize events on Introduce Express
weekend Menu

Introduce short and Monitor social

attractive online menu media presence

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Marketing helps the restaurant improve sales via multiple channels, digital marketing,
loyalty marketing and special offerings ( by one get up complimentary
drink).Marketing helps to increase sales by up to 15 percent (training the staff to up
sell dishes)Intelligent advertising enables RMT to establish its reputation and reach
consumers who would never hear anything else about you. It also supports the
promotion of restaurants with new menus, discounts and special events. By adding
and running a menu, customers in hurry may dress their food and dress up on tour,
helping RMT eatery improve its sales.

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