Day 204 - 15 Jan 96 - Page 46


     
     1        What I say to you is that you were under pressure about
     2        food costs and you were expected to train your Managers
     3        below you to appreciate the Company's concern about food
     4        costs, is that correct, amongst other things?
     5
     6   MR. JUSTICE BELL:  I would have thought that was obvious
     7        because, again, I cannot see anything wrong with good
     8        housekeeping.
     9
    10   MR. MORRIS:  Well, in that case, the witness can accept it then.
    11
    12   MR. JUSTICE BELL:  But I think the trouble is, it is so obvious
    13        that there can be nothing wrong with good housekeeping that
    14        the witness wonders what it is extra that you are putting
    15        to him.  If there is something extra, then put what you are
    16        aiming at.
    17
    18   MR. MORRIS:  I am putting to you that it was a theme while you
    19        were in the Colchester store that the Company, your
    20        superiors, were concerned to reduce your controllable food
    21        costs levels?
    22        A.  They were concerned to optimise it.
    23
    24   Q.   Yes, to reduce what you were achieving?
    25        A.  It does not necessarily mean to reduce, no.
    26
    27   MR. JUSTICE BELL:  Can I explain?  I think why the witness keeps
    28        saying "optimising" is, you do not necessarily want to
    29        reduce the costs, because all the time you are trying to
    30        get more trade which may mean that the costs will, in fact,
    31        rise.
    32
    33   MR. MORRIS:  Reduce the percentage.
    34
    35   MR. JUSTICE BELL:  Yes.  That is why he uses the word
    36        "optimise".
    37
    38   MR. MORRIS:  Right.  So you were expected to reduce the
    39        percentage spent on your controllable food cost?
    40        A.  The idea was to control food costs in so far as -- by
    41        your implication, you are trying to state that the idea was
    42        to keep it as low as possible.  That was not necessarily
    43        the case.  The idea was, for instance, with a fry portion,
    44        you could easily reduce it by only giving half the amount
    45        of fries in a box.  If you did that, then obviously there
    46        is an implication to the customer who probably would not
    47        return the next time; therefore, you impact sales.
    48        Therefore, the idea is to look at things like the storage
    49        and the delivery of the fry boxes, and that sort of thing,
    50        so you do not get breakages, so that the product is intact 
    51        and of a good standard when you serve it across the 
    52        counter. 
    53
    54   Q.   Whatever the reasons were, the Company is setting food
    55        costs controllables percentage targets?
    56        A.  Within a range, yes.
    57
    58   Q.   And you were expected to get below those?
    59        A.  No, within a range.
    60

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