Essay on Cost Control Issues in Malaysia's Foodservice Sector: A Review

There has been little research on the cost control issues, mainly in the case of foodservice outlets in Malaysia. The foodservice sector is currently in the middle of rapid growth and attracting more diverse consumers. This factor has led to a more competitive environment, which resulted in luring and retaining consumers in the foodservice sector a challenge for most restaurants. Profit maximization is another key concern for all operations (Zainol & Ahmad, 2019). There is a myriad of ways to institute cost control in the food and beverage industry. The specific cost control methods depend on the nature of the service being rendered by the restaurant. Examples of cost control techniques in this sector include; formulating standards, and procedures, training workers on the plausible ways of implementing control measures within the restaurant (Zainol & Ahmad, 2019). Players in the foodservice sector need to consider implementing internal controls to prevent employee thefts and other related fraudulent operations. Some of the recommended internal control measures involve accounting measures and all matters about the operational efficiency of the business and administrative control measures in general. In a nutshell, the article has analyzed some of the internal cost control techniques that could be improvised in the foodservice sector to ensure the difficult task of profit realization is eased.

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The selected topic closely relates to the topic covered in the class in that it explains more on how cost control measures can ensure the challenge of consistent profit maximization and client retention in the majority of foodservice industry players is solved (Zainol & Ahmad, 2019). Most companies are often left with fewer funds or some times operate in debt due to a lack of control measures. These firms end up using a lot of funds in unnecessary expenses and result in accessing credit to invest in capital expenditures or introduce new services to retain more clients.

The selected article relates in the discussion of cost control as it has narrowed down on how lack of proper cost control techniques impacts the consistency of profit maximization, and retention of customers in the Malaysian foodservice sector, despite it attracting more diverse cultures (Zainol & Ahmad, 2019). In a nutshell, cost control frameworks within an organization are important in ensuring the restaurant is able to operate in an efficient manner that will attract and retain clients.

References

Zainol, N., & Ahmad, R. (2019). Foodservice cost control practices: issues and recommendations. https://www.researchgate.net/publication/334479077_FOODSERVICE_COST_CONTROL_PRACTICES_ISSUES_AND_RECOMMENDATIONS