A Study On Cost Control Of BY Chain Restaurant Company

In recent years, China’s consumer food service market has increased significantlybecause of the China’s economic growth. Restaurant industry is developing rapidly becauseof the broad market potential, as well as the food and restaurant industry has low barriers toentry, and flexible business model, industry advantages of higher yields. Especially chainrestaurant management pattern of the lower operating costs and expanding market share,the advantages of the restaurant industry have made the chain restaurant industrydeveloping rapidly in China.BY Chain Restaurant Company headquartered in Shanghai, is one of the chainrestaurants in the Chinese highest market. Its first restaurant was opened in Shanghai in1987. The company has operated83restaurants in more than10provinces and cities inChina. And it successfully listed on the Main Board of the Hong Kong Stock in July4,2012. BY chain restaurant companies already implemented in the restaurant operationsstandardization process in2002and it takes the "Radiation hub" strategy. This companyused a unified central to control the kitchen food quality. And it used the central warehouseto distribute logistics. At the end of2013, the company had five central kitchens and sixcentral warehouses. BY Chain Restaurant Company is typical in our high-end Chinesechain restaurant companies. In the word, it was walking in the front of the Chinese foodchain restaurant industry.However, our country’s high-end food industry has been stroked seriously because ofthe slowdown of the economic growth in China, raw material prices, labor costs, rents andother operating costs rise and the central government contained the luxury consumption andso on. BY chain restaurant companies have not been spared. And its development faces toomany new obstacles. Its sales revenue, gross margin and net growth levels had significantlylower interest rates. To steady and healthy development of enterprises, and improve thecomprehensive competitiveness of enterprises, BY Chain Restaurant Company urgentlyneed to improve its cost control.In this paper, I analyzed the BY Chain Restaurant Company‵s cost control. Thisstudy is divided into five parts. The first part is the preface of this paper. It describes theresearch background, significance, methods, literature review and abroad.The second partis the basic theory. It summarizes the cost control, the cost control of chain restaurantindustry and Overview of ERP cost control theory. This part paves the way for research andanalysis of the following two parts. The third part is the main part. I briefly introduce thedevelopment of BY Chain Restaurant Company. And I put forward the problems existing inthe cost control based on the situation of the company‵s cost control. The fourth part putforward the relevant solutions for the BY Chain Restaurant Company‵s problems about its cost control. It mainly to improve the effectiveness of its direct costs by building astandard cost system. And it draws on activity based costing to adjust its indirect costs. Thelast part is a summary and outlook. I hope through this study can provide useful lessons forBY Chain Restaurant Company to improve its cost control.