Track: Operations Management

Abstract

Restaurants have positively contributed to employment creation and significantly impacted the performance of the South African economy for several decades. Effective cost management systems are crucial for profitability and financial sustainability in a competitive market. Operational costs have been proven difficult to control because of many factors including poor management systems, high levels of theft, and the increasing economic crisis. Conversely, there seems to be very little information to aid cost control in fast-casual restaurants. The paper adopted case studies of ten fast casual restaurants in the South of Johannesburg to obtain more detailed information. Both primary and secondary data sources were gathered to aid understanding of the performance of the fast-casual restaurants with regard to cost control and its challenges. Qualitative data were obtained from key informants using interviews and observations, while quantitative data was obtained using self-administered questionnaires. Purposive and convenience sampling methods were adopted for the study. Qualitative data was analyzed using Atlas. ti, while the quantitative data was analyzed using the SPSS software. The paper revealed that while cost control measures are in place in the fast-casual restaurant industry, enforcement and compliance remain challenging. This research offers restaurant owners and managers valuable insights to implement effective cost control measures, achieve financial stability, and ensure long-term sustainability in a highly competitive industry. The work recommends the refinement and strengthening of cost control enforcement and compliance measures. This could be achieved by making regular and appropriate training and skilling of workers and implementing effective oversight mechanisms.