Abstract
Restaurants have positively contributed to employment creation and significantly impacted the performance of the South African economy for several decades. The restaurant industry is highly competitive, hence effective cost management is crucial for its profitability and financial sustainability. Operational costs have been proven difficult to control especially for the emerging fast-casual restaurants because of many factors, among others include poor management systems, high levels of theft and the increasing economic crisis. Conversely, there seems to be very little information to aid cost planning and control in fast-casual restaurants. Consequently, this study examined the cost planning and cost control measures adopted by fast-casual restaurants to improve their financial performance. The research used 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 regards cost planning and control. The qualitative data about cost planning and control strategies was obtained from key informants using interviews and observations while quantitative data was obtained using self-administered questionnaires. Purposive and convenience sampling methods were adopted in selecting research participants for the study. The responses obtained from the interviewees’ qualitative data were analyzed using Atlas.ti, while the quantitative data was analysed using the SPSS software. The data obtained from observations were analysed in the form of pictures. The research revealed that while cost planning and control measures are in place for all stakeholders in the fast-casual restaurant industry, enforcement and compliance remain challenging. This research offers restaurant owners and managers valuable insights to implement effective cost planning and control measures, achieve financial stability, and ensure long-term sustainability in a highly competitive industry. In conclusion, the work recommends the refinement and strengthening of cost planning and control enforcement and compliance measures. This could be achieved by making regular and appropriate training and skilling of workers of fast causal restaurants and implementing effective oversight mechanisms.
Keywords: cost planning, cost control, fast casual restaurants, enforcement, compliance, Johannesburg South, South Africa