Obligations to implement ABC in Sri Lanka

Sri Lanka has corporate target of becoming a tourist hotspot. In order to do that there are few major facts. One of them is having good restaurants. Problem with most of the Sri Lankan restaurants are; most of them does not use the correct pricing techniques. Down side of this is most of the restaurant owners set their price based on their competition. Not just for the foreign customers; even for the locals most of the quality places value their food not based on the costs on each item but dividing the total over heads for each product. One of the common example of Sri Lankan context is selling Tea at 450 a cup in most of the Five star hotels. Yet the cup of producing the tea is approximately around Rs. 50 including all the supplementary facilities.

As to the tourism reports and articles of Sri Lanka; most of the tourist does not tend to dine from the top restaurants because of the prices are ridicules. Other thing is ABC derives standards for cooking. Like world class restaurant chains ABC allows manager to get an idea about average time of production and actual cost of the product. There for they will be able to take managerial decisions to drop non performing products. Because one of the most common factors in Sri Lankan restaurants are they have little bit of everything not specialize on few things.  First and foremost is the attitude problem. Most of the Sri Lankans have very poor attitude on changing their behaviors. Knowledge is the other main issue. Even though some of the restaurant owners are literate on English they have a very little knowledge in applying and understanding statistical stuff like ABC applications.

No proper standards of cooking. So very hard to define the cost factors and the measurements.Specially not on star level restaurants measuring these factors are very hard. For example; sometimes they use the same oil to cook few times and sometimes they use it once or twice. Even the supplies also change very rapidly.

Other issue is the instability of the government. The tax rates and other various types of factors influence prices of the products. So its hard to define the cost for a particular time.

And these things has to updated once the costing changes; this pop the second problem in sri lanka where updates on rates never gets updated and once its not generating expected out comes they drop the system and use their traditional ways.