Day 204 - 15 Jan 96 - Page 33


     
     1        meeting his costs targets", that is, food costs and labour
     2        costs, is it, that you are talking about there?
     3        A.  Sorry, I cannot find the paragraph.
     4
     5   MR. JUSTICE BELL:  Page 3, paragraph 6.
     6
     7   MS. STEEL:  The last sentence.
     8        A.  "Controllable costs" -- yes, sorry.
     9
    10   Q.   So, if sales drop it is hard for managers to meet their
    11        targets, is that what you are saying?
    12        A.  Not necessarily, but the basic premise is if on, say,
    13        the budgeted sales are 100,000, if they drop to 80,000,
    14        then the percentages within that are obviously less of a
    15        pounds value.  Therefore, it is slightly more difficult to
    16        attain the budgeted percentage target.
    17
    18   Q.   The percentage would remain the same?
    19        A.  So far as your budget went.
    20
    21   MR. JUSTICE BELL:  The more you sell, the harder it is to keep
    22        your percentage, certainly so far as labour is concerned,
    23        down?
    24        A.  Yes, and particularly so in the instance of more fixed
    25        costs such as your waste pick up or your costs for linen or
    26        whatever.
    27
    28   Q.   Yes, but generally it is easier to keep your percentage
    29        costs down ---
    30        A.  That is the case-----
    31
    32   Q.   -- if you are selling a lot?
    33        A.  That is right.
    34
    35   Q.   Just as a general statement of principle?
    36        A.  Yes.
    37
    38   Q.   So, if when the targets are worked out they are worked out
    39        on anticipated sales of a certain amount and you do not
    40        sell that much, you are likely to run into trouble meeting
    41        your targets for labour percentages and other cost
    42        percentages?
    43        A.  Possibly, yes.
    44
    45   MR. MORRIS:  If we go to -- sorry to keep dodging about -- page
    46        6 of the performance reviews, of your performance reviews
    47        as a Supervisor, this is 13th September 1989, after you had
    48        been a Supervisor for two years, yes?
    49        A.  Yes.
    50 
    51   Q.   If we look at the middle of page 6 under "Profit" we have 
    52        got net, is that the sales? 
    53        A.  Net is the sales, yes.  That is also what we refer to
    54        as the top line sales ---
    55
    56   Q.   Right.
    57        A. -- just to go back to your previous question.
    58
    59   Q.   The sales are down throughout your region for each store,
    60        well, those three stores; is that correct?

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