Posted: July 14th, 2016

How the current practice for consolidation is consistent with the entity theory of consolidation?

You are one of the star managers for a large chain restaurant company. Senior management has asked you to take over an underperforming restaurant. Your first order of business is to evaluate and provide solutions to the following problems in the restaurant.

1. Food cost: Has inflated to over 50%.
2. Labor: Not enough skilled employees.
3. Sales: Sales have plummeted by 25%

Evaluate the three areas of concern and provide three solutions for each.
Describe the importance of food cost, labor and sales in a food and beverage operation. Support your description with concepts addressed in the materials provided in this course.
How the current practice for consolidation is consistent with the entity theory of consolidation?