Day 204 - 15 Jan 96 - Page 48


     
     1        every store, are they not?
     2        A.  Of course they are not, no.
     3
     4   Q.   If you look at the performance review you did on
     5        Steve Harney -- I do not know whether you still have that?
     6        A.  Is it 4A?
     7
     8   Q.   Behind Mr. Harney's statement.
     9        A.  Yes.
    10
    11   Q.   On the third page, the second paragraph, third
    12        sentence:  "Control of the food account could be better.
    13        Find out why problems occur."  What are the problems that
    14        you are referring to there?
    15        A.  I cannot remember specifically, but it could be, like
    16        the example I gave earlier on, it could have been something
    17        -- maybe the food cost was OK but the fry yield was a
    18        massively over or under, or a beverage yield was out, or it
    19        was not recorded in his waste sufficiently well.  It could
    20        have been any of those things.
    21
    22   Q.   Again, there, you are trying to get Mr. Harney to lower the
    23        food cost percentage, are you not?
    24        A.  Not necessarily, no; control it better.  As I said
    25        before, it could be that his fry yield could have been too
    26        low and I wanted him to pull it up a bit.
    27
    28   MR. JUSTICE BELL:  What is the problem with keeping food costs,
    29        labour costs, etcetera, below a certain percentage, with
    30        the result that the percentage of all those costs, when you
    31        add them up, becomes lesser and the gross profit percentage
    32        becomes greater?  I would have thought that is the aim of
    33        all businesses.  What is it which concerns you about just
    34        accepting that it be so?
    35        A.  Because, obviously, there comes a point where you
    36        constrict your profit to such an extent that it has a
    37        direct effect on your customers.  So there has to be a
    38        balance and compromise within that.
    39
    40   Q.   I appreciate that.  But when you fix on the percentage, you
    41        presumably take that factor into account?
    42        A.  Yes, of course you do.
    43
    44   Q.   Then, having fixed on the percentage, taking that factor
    45        into account, what is wrong with aiming to get below the
    46        percentage?
    47        A.  As long as you are not constricting the standards
    48        within that, there is nothing wrong with that at all.
    49
    50   MR. MORRIS:  Probably my last question:  on page 28 of your 
    51        performance reviews, the last page of the performance 
    52        review October 1986 by Frank Stanton on you, three-quarters 
    53        of the way down, under "additional comments", the middle
    54        sentence: "Demands more from Ray" -- this is in terms of
    55        goals.  At the very bottom of the page under "summary", it
    56        says: "You need to develop Ray Coton and Daniel Rizardini
    57        to Store Manager."
    58
    59        So, you were being expected to groom Ray Coton in all
    60        aspects of the business in order for him to become Store

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