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What is the reason why the catering cost is greater than the settlement amount?

the price of raw materials has gone up.

the main reason why the catering cost is greater than the settlement amount is that the price of raw materials has risen, but the selling prices are not synchronized, resulting in the final cost being greater than the settlement amount. At the same time, we can also consider the following aspects: there are some unnecessary equipment or poor equipment in kitchen production. Too much purchase, the purchase price is too expensive, and the strategy to cope with the competition in the procurement market is not considered. Failing to check the price, quantity and quality, and failing to follow the acceptance procedures and methods. Storage areas are not divided, and food is not properly placed. The warehouse has not kept control records in issuing materials.

The influence of daily time, weather, temperature and holidays on catering operation is not considered. No standard component is specified. No daily sales audit.