Professional Documents
Culture Documents
Cost of sales
100%
70%
30%
Food
21%
Beverage
9%
Gross Profit
=30%
of
70
=30%
of
30% 30
***Assuming
to be 100%
70% sales100-30
Operating costs
Miscellaneous expenses
Labour
Employee benefits
Employee meals
Advertising
Management
Laundry, linen, uniforms
Replacements
Supplies
Menu
Music
Utilities
Administrative expenses
Repairs
Rent
Taxes
Insurance
Interest
Depreciation
Total
Net Profit before tax
1.5%
10%
4%
1.5%
10%
4%
1.75%
0.75%
1.25%
0.375%
0.75%
1.5%
1.375%
1.5%
5%
1%
0.875%
0.65%
3%
50.775% =51 %
19%
2. INTANGIBILITY :
Services are performances, deeds and efforts which cannot be felt,
sensed or touched.
How do you get customers to take notice of your service when they
cannot touch it.
The food was cooked in front of the customer by Japanese chefs,
and the dcor was that of an authentically detailed Japanese
country inn.
3. SIMULTAINEITY: Services produced and consumed at same time
e.g. Customized offerings of the chefs which are immediately
consumed by the customer.
4. PERISHABILITY:
Services cannot be saved , their unused capacity
cannot be reserved and they cannot be inventoried.
Motivating Non-peak consumptions
The hours of operations for the 15 units varied
according to local requirements. All were open for
lunch and dinner, though not necessarily every day
for each. Lunch business was important ; overall it
accounted for about 30% to 40% of the dollar
volume despite a significantly lower check average.
Essentially the same menu items were served for
both meals , the lower menu price average at lunch
reflected smaller portions and fewer combinations.