Case Study of the Week: Reducing Operating Costs

Sep 30, 2024

Restaurant and Food Service

You are to assume the role of the general manager of The Cabin, a restaurant specializing in steaks, seafood and pasta. The owner of the restaurant wants you to weigh the pros and cons of implementing a new policy to reduce operating costs.

The Cabin is open for dinner Tuesdays through Sundays and for lunch on the weekends. The menu is upscale and focuses on a variety of steaks, seafood and pasta dishes. When the pandemic hit, The Cabin began offering online take-out options. The new feature was such a hit, it remains extremely popular even now with pandemic restrictions lifted.

While the owner is happy that customers choose The Cabin for take-out, the owner understands that take-out customers spend less than in-house diners. Take-out customers do not typically order beverages, appetizers or desserts. Also, The Cabin staff is unable to up-sell menu items to online take-out customers.

The current economy has resulted in higher prices on operating costs. The owner is looking for ways to reduce costs and has recommended that The Cabin stop adding plastic utensils, napkins and condiments to take-out orders unless specifically requested by customers. The owner wants you to weigh the pros and cons of the new policy and make a final recommendation.

Questions?

Randi Bibiano
Competitive Events Specialist
[email protected]

Randi Bibiano is DECA's competitive events specialist. In this role, she conceptualizes and authors role-play scenarios for the collegiate and high school division’s competitive events programs. She also manages DECA's online competitive events and serves as a liaison to volunteer efforts at DECA's educational conferences.

Discussion Questions

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Classroom Connection

Career CLuster:

Hospitality and Tourism

Instructional Area(s):

Operations

Performance Indicators:

Describe strategies to minimize the cost of maintaining inventory