In order for the Restaurateur to stay profitably in business total sales must be greater than total cost. If the cost exceeds the sale for an extended period of time, the owner will confront bankruptcy or he has to put additional funds business in order to keep it going.
It is the job of cost controller or manager to be constantly aware e of costs of operating the business and to keep them below sales. Costs of operation are gathered on daily basis and compared with daily sales and various types of cost to sales ratios are determined. These ratios are compared with previous year ration of the same time period and judgment are made whether they satisfactory or not. If not the remedial action is taken to bring down the cost to point where the ratios are satisfactory.
