The Seafood Shack is a casual restaurant located in a beach and fishing port area of coastal New England. It has been open for six months. Sales in December were lower than in the summer months, as expected, but not bad at all. However, sales and profit in January were very disappointing. Three employees receive yearly salaries: Manager $110,000, Executive Chef $75,000, and the Sous Chef $58,000. All other employees receive hourly wages.
Review The Seafood Shack Financial Reports.xlsx , both income statements and sales report. Compare and analyze data. Pay particular attention to the total cost and sales information on the sales report and income staements. In your initial post, respond to the 3 statements/questions marked in bold text below. Use the numerical sequence for your numbered replies.
- Food and Beverage sales dropped significantly due to fewer sales and guests. Offer at least three possible reasons why this could have happened.
- Food cost % dropped in January. If you were the manager, would you be happy? Why or why not? *For this, consider the video presentations you watched this week.
- Dollars spent on Labor cost dropped but the labor cost % of sales increased. Looking at the income statements, the owner is not happy with the results. If you were the manager or chef, what would your response be? What statistics could you use in your defense?
Then reply to two classmates. Do you agree with their post? What insight did they provide that you did not think about? What information could you offer them regarding your analysis of the financial documents?