Day 117 - 27 Apr 95 - Page 26


     
     1
     2   Q.   Do you understand that?
     3        A.  Yes, I do.
     4
     5   Q.   Do you see any benefit  to be conferred on the company,
     6        apart from saving a bit of money, by such a system?
     7        A.  No.  It would be no benefit at all because we would not
     8        be handing our customers the quality service and
     9        cleanliness they expect and demand from McDonald's.
    10
    11   Q.   You are, despite Ms. Steel's hilarity, you are in the
    12        market to make money?
    13        A.  Of course.
    14
    15   Q.   If by such a system, that is to say pressurizing labour
    16        costs in that way and producing chronic under-staffing, you
    17        were able overall to produce a greater profit and annually
    18        and increase it, do you think you might be tempted by it?
    19        A.  I do not think we would be able to do it.
    20
    21   Q.   Why would you not be able to do it?
    22        A.  We would not be able to hand the customer the service
    23        they want or the quality of food they want, and we would
    24        lose sales.
    25
    26   Q.   Have you got volume XII there, the pink one?  I want you to
    27        look at something, which you may or may not be familiar
    28        with.  I think it is the one we already have out.  Could
    29        you turn back in it please to tab 15?
    30        A.  Yes.
    31
    32   Q.   The first page is 594?
    33        A.  Yes.
    34
    35   Q.   It is somebody has written on it in handwriting "MDP3 First
    36        Assistant Development".  What does MDP stand for?
    37        A.  Management Development Programme.
    38
    39   Q.   Is this a kind of training document?
    40        A.  It is, yes.
    41
    42   Q.   I would just like you to look at two pages in this, 596,
    43        which is the second page of the text.  As you say this is a
    44        management training programme or development programme.
    45        There is a section headed "Pay For Performance" I am not
    46        going to read that.  Then, which bears on our current
    47        topic, is "Labour Cost Analysis".  Do you see that?
    48        A.  Yes.
    49
    50   Q.   It says: "The first step is to determine whether you have a 
    51        labour problem (high labour costs). In food cost, you 
    52        compared the targeted P&L food cost percent to the actual. 
    53        In labour,  you do the same thing." Then gives some
    54        blobs. "Targeted (projected)labour hours = 121. Actual
    55        labour hours= 124, or Targeted (projected) labour percent=
    56        16%.  Actual labour percent 16.35%.  You should do this on
    57        a daily, weekly, and monthly basis.  Because labour
    58        percents fluctuate on daily basis (Monday's labour may be
    59        18.5%, while Saturday's labour may be 14.0%), many
    60        restaurants also track weekly cumulative labour.

Prev Next Index