Dss for Restaurants

CHAPTER 1

INTRODUCTION TO THE PROJECT PAPER

The computer has increasingly become a popular instrument in different Industries. Like manufacturing where computer systems are typically used to support procurement, inventory, engineering, costing, sales and accounting. Mass production of items requires fast paced transactions that are almost impossible without the aid of computer softwares.

Restaurant businesses are somewhat similar to a manufacturing industry because restaurants procure items that are kept in inventory, chef’s designs menus; food costs are calculated to decide menu prices. And then there are sales and accounting. All these must be carefully managed to keep the restaurant financially up float.

And can you imagine what the most important element in the survival of a food business is, No not the food, and not the sales but the cost. One of the most important and most difficult to manage in the restaurant systems is the costing; Food costing is the process that calculates the food costs in a restaurant to illustrate profitability. A restaurant’s food costs are widely considered by many in the industry as the most important metric as it directly impacts the profitability of the restaurant. No matter how popular the dish is if the cost is too low profit is lost, if the cost is too high then possibility of sales is low, in order to determine the correct price of the dish many things are taken into consideration.

Menu costing requires taking into consideration the cost of materials necessary to prepare each menu, amount effort and time, popularity of the dish and the sales.

Restaurant owners are all too aware of the importance of food costing. For a restaurant to be profitable not only does it need to achieve specific sales goals but it must also hit certain cost targets as well.

Calculation of...