X-Catering Kitchen: Profit in Catering Business- Case Study- Research Report Writing Assignment

Internal Code: TV541

Research Report Writing Assignment:

Task: Report title The stability of the profit in a catering business “X-catering” kitchen, Case Study. Industry partner The industry partner is “X-catering” which is a catering kitchen located in Melbourne. With two business partners (chefs), and current staff of 7 employees, the kitchen has been providing catering services for the last 20 years. Overarching problem The main problem is the fluctuation in the annual profit’s scale, despite the increasing in clients’ numbers. Background to the RESEARCH PROBLEM This problem has been identified via an interview with the owner who gave me a brief about; how the profit is changing every year without any clear reason, he wanted me to see what is the causes of this problem could be. Give greater clarity to the problem and some insights from evidence –given by owners / financial records – the business company tax returns, monthly or quarterly financial budget….etc. Explain how you identified the problem – give example of what you did, how you did it – the method use i.e. interviewed the business owner. What evidence exists that this problem exists? Explain what evidence was revealed by the business partners – are there patterns what you can identified to explain the problem Are there particularly spikes [highs and lows – where profit varies from year to year] You need to refine the problem or narrow it down to something more specific. Do the business owners give you any explanation / reasons for the why problem – what makes them say that they think this is a problem? Research Focus - This research project will try to identify and analyze the reasons which caused the fluctuation in the annual profit. Why is the problem important to resolve? It is important to solve this problem because the business is always in risk to close down as there is not a stable income that should keep the business running and growing. Beside it will help the owners restructuring their business’s operations and portfolios by eliminate the unprofitable products and the unnecessary costs. Moreover, solving the problem will clarify the picture to owners in terms of the current business situation and the expansion opportunities in the future. Research questions(s) 1-What are the factors that caused the annual variation? 2-What is the effect of each factor of these factors on the business and the profit? • Staff wages, turnover and lack of qualified chefs He never pay cash on hand and this means he pays much more wages than competitors, but does that really affect the profit how or why ? and how to solve this . He can’t find qualified chefs who are committed ,quick and able to learn. • Inventory management. • Assets and maintenance Cost. He has 3 small fridges which could means more electricity consumption and higher maintenance cost. Although the clear issue that he can’t order a big quantity of row materials such as butter or eggs…etc because he doesn’t have space and that make him lose at least 10-20% discounts per order. Noting he have to order once or twice a week. • Delivery cost. When the fuel prices increased he started to charge 8.80$ per delivery which used to be free, does that affect his sales or not? considering that he never lose a customer but he might get less orders from the same client.