Lecture Food and beverage cost control (5th Edition): Chapter 12 - Dopson, Hayes, Miller 

Chapter 12 - Global dimensions of cost control. This chapter presents the following content: Multinational foodservice operations, managing in a global economy, cost control challenges in global operations.

T.G.I. Friday’s, Mrs. Fields, Dunkin Donuts, Baskin 

Robbins, Pizza Hut, Marriott, Taco Bell, Aramark, TCBY, and Rainforest Cafe are just a few examples

international operations. 

© 2011 John Wiley & Sons Food and Beverage Cost Control, 5th 

Edition

  Managing in a Global Economy

(and other) managers. 

cultural understanding between managers and employees in the company’s various international components

your professional development process

control over a foreign division or addressing and correcting a significant problem

require long­term on­site management direction to properly 

operating permits and permissions to do business may be slower in coming than in the United States. 

directly or indirectly to government officials, may accompany the granting of these permissions

dependable, cost­effective and local service representative for the building they occupy or the major equipment they utilize.

international managers can vary greatly from one area of the world to another.  

dress, work ethic, religious tolerance, and the rights of minorities are all areas that may present significant challenges to you as an international foodservice manager. 

least one year) in several different countries in which U.S. companies typically do business is shown in Figure 12.1

© 2011 John Wiley & Sons Food and Beverage Cost Control, 5th 

Edition

Figure 12.1: Annual Earned Vacation Time

Country Vacation Time Earned

Argentina 14 calendar days Australia No law, but 4 weeks is standard Belgium 20 days with premium pay Bulgaria 20 business days Canada At least 2 weeks, as determined by

provincial law Chile 15 days China 0 Czech Republic 4 weeks France 5 weeks Germany 4 weeks Hong Kong 7 days Hungary 20 days Ireland 4 weeks Israel 14 days Italy Mandated vacation, length determined by

employment contract Japan 10 days paid time off Mexico 6 days

Poland 18 days Puerto Rico 15 days Saudi Arabia 15 days Singapore 7 days South Africa 21 consecutive days South Korea 10 days

Spain 30 days Sweden 5 weeks Taiwan 7 days The Netherlands 4 weeks Turkey 12 days

UK EC directive (4 weeks annual leave) Ukraine 24 calendar days

U.S No national requirement Two weeks is

common but not mandatory

Venezuela 15 paid days

foodservice unit can be challenging. Among these challenges is the potential unreliability of the unit’s food supply chain. 

prepared in another location, frozen, and then shipped to the unit, a dependable refrigerated storage and delivery company will likely be of critical importance if a high level of food quality is to be maintained. 

to the metric system can often seem challenging. 

Figure 12.2 British Imperial to Metric and Metric to British Imperial Conversions*

Conversions by Volume

1 teaspoon = 5 milliliters (ml)

1 tablespoon = 15 ml

2 tablespoons = 1 US fluid ounce = 30 ml

1 Liter = 34 ounces = 1.06 quarts = 4.23 cups or 4 cups plus 3½ T

1 milliliter = 001 or 1/1000 liters

Conversions by Weight (Mass)

profit as much as one­third”

in Global Operations

customary beliefs, social norms, and characteristic traits of a racial, religious, or social group

international managers

in Global Operations

principle of accounting that the financial results of a  business should be reported in an identifiable 

monetary unit. 

recognized currency denomination. The reporting of cash sales may be complex in international companies because 

of a potential variety of monetary units being used

large portion of many restaurants’ total sales) create 

decision to buy can be an easy one.  If the cost of the tool exceeds its value to your operations, it likely should not 

be purchased

in Global Operations

that their implementation and routine operation requires very high levels of skills.  Difficulties can be reduced or eliminated through the implementation of thorough 

training programs

– A listing of precisely which items are covered under 

the terms of the warranty– The length of the warranty– The allowable charges for repair service for non­

warranty­covered items– Expected response time of the service/repair 

technicians

in Global Operations

technological developments may occur in the future, it is true that advancements that are compatible with your 

current system will likely prove to be less expensive than those that require completely new software, hardware, or communication devices

are:  reliability of the product or service, and reliability of the vendor.  A variety of factors can influence vendor 

reliability including location, experience, quality of 

associations typically serve the certification, educational, social, and legislative goals of their members.  Trade 

shows are an extremely efficient way to see the product offerings of a large number of vendors in a very short time

in Global Operations

become such a large part of the editorial interest of these publications that a special technology editor is employed 

to monitor technological changes that could be of interest 

to the publication’s readers

should be a valuable source of no­cost information.  An added advantage of working with your current technology suppliers is the fact that the new systems they develop are likely to be compatible with those systems you already 

be a source of information on changing technology