Relevant Information for Decision Making – Texas Roadhouse Restaurant, Essay Example

Introduction

The Texas Roadhouse Restaurant is a leading catering and hospitality organization in fast foods which attracts a wide range of investors to the hospitality industry. Due to the need to upgrade on the level of service delivery and customer satisfaction, the management reached a decision to have an automated office system. After its implementation, it has been operational in the past one year. After this sophistication, this tool has been used for control of operations and as a management tool.

With this there has been high investment costs incurred to implement the system. The system has upgraded the organization’s operations since it can tackle functions such as customer satisfaction, scheduling, demand forecasting, enterprise resource planning, meal duration, kitchen production and revenue management. Through accounting the management will be able to provide a report on the cost implication associated with this prime investment. These costs involve the financial costs to be represented to investors and the other costs of accountability by managers of different departments following internal controls and decision making in this organization (Dyer, 1999).

The input to the implementation process involved installation of new machinery to replace the obsolete ones and payments to the program consultants and training of staff. The system specific results that have been achieved include a controlled demand- order framework to avoid production wastages, better detection and response to customer needs. Our first year results included large sales and less congestion in the restaurant. There was less resource wastage in time of man hours. With larger revenue from sales, there have internal woes over salary increments by staff, but the management has decided to hold it till the next financial year since the cash outflows with the high investment in office automation was a cost. Thus salary increment would destabilize the accounts and profit margin.  The external implications of the decision included a more proactive and motivated staff, there is reduced overtime for accounting by staff since systems have been centralized to accountants for each sale. These positive results have been more than the prior expectations.

Financial Statements for Texas Roadhouse Restaurant

Over the last four year, Texas Roadhouse Restaurant has seen minimal change within the previous three years compared to last year alone in their bottom line net income from $130M to $161.7M. The revenues grew from $735.5M to $920.5M. A major attributing factor has been a raise in the sales percentage committed to the cost of goods sold from 64.5% to73.5%.

Annual Income Statement

References

Dyer C. (1999). Framework for Restaurant Information Technology, Hotel & Restaurant Administration; 50(3), Pg 74-84.