Based On The Theory Of Constraints Xi'an Cuisine Operating Expense Research On Management And Control

China is a country with a rich diet culture.In recent years,although people's living standards have been greatly improved,and eating habits have changed dramatically,the food and beverage industry is still an industry closely related to people's lives.At the same time,with the transition from quantitative change to qualitative change,many catering enterprises begin to consider their future business development strategy from a financial perspective.Xi'an Catering Co.,Ltd.is the largest national top 100 catering enterprises in Xi'an and Northwest China.Since 2012,the company's operating performance has continued to suffer a significant loss,and it is now facing tremendous pressure from the operation expense management.The theory of constraint(TOC)focuses on the constraints of resources,and emphasizes that any system has at least one constraint resource(or bottleneck operation).Only by improving the production efficiency of the constrained resources can the maximum effective output be obtained,that is,the monetary fund obtained by the sale of the enterprise.In this paper,the author tries to build the advanced management theory of TOC theory into the financial distress of Xi'an Catering Company,focusing on the bottleneck of food and beverage value chain,so as to provide a targeted cost management solution.In this paper,firstly,the theory of constraint and the theory of restaurant operating expense management are introduced and summarized.Then,using the idea of TOC and combining the catering industry with the dual characteristics of service industry and manufacturing industry,the author has combed the company's current situation,internal control system and financial results in recent years.Further analysis and empirical tests show that higher operating expense have been the bottleneck factor restricting the development of enterprises.Secondly,the company's operating costs control countermeasures are studied.In view of the structural characteristics of the operating expense of catering enterprises,the operating costs are divided into five parts: labor cost,processing and manufacturing cost,period cost,energy cost and rental cost.Combined with the annual reports and other relevant information published by the company in recent years,we have found: 1.In the process of production,the balance between cost and yield of primary product is found.The improvement of yield of primary product rate plays an important role in reducing enterprise cost and improving operation profit;2.A substantial increase in sales costs is not a big boost to business performance,on the contrary,it can increase cost pressures.Finally,Shop rent,energy cost,and labour cost continue to rise in the region where the company is located,which caused great difficulties for Xi'an Catering Co.,Ltd.in deep financial trouble.Finally,combined with the results of this study,we put forward some practical suggestions for improvement of the process of processing of the ingredients,the improvement of the system,and the control of sales expenses,aiming at applying the idea of the theory of constraint solve the restricting factors of operating expense management,improve financial performance.