Influence of Sales Control in Food and Beverage Service on Financial Performance of Classified Restaurants in Nairobi City County, Kenya
Nyamwaya, Ondieki Margaret
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Food and beverage service control in hotels and restaurants is set to ensure that there is no loss of assets. Therefore, any variances in control of food and beverage services in classified restaurants require evaluation to avoid results, which may lead to adverse impacts on performance. The purpose of this study was to evaluate how food and beverage service sales control industry influences the overall financial performance of classified restaurants in Nairobi City County, Kenya. The study looked at how; employee training affects sales control, various types of sales control, the influence of internal control components of food and beverage service sales control and the sales control challenges affect financial performance in classified restaurants. The study used a descriptive cross-sectional survey design. The target population was 46 classified rated restaurants and the study adopted stratified, random sampling. There were 32 restaurants and 128 participants in the study. The response rate was 85.94 % overall. Based on the objectives and conceptual framework, questionnaires and interview guides were utilized as study instruments. Food and beverage controllers, supervisors, cashiers, and managers of classified restaurants were among the responders. Pre-testing was done by the researcher at two classified restaurants that were not included in the final study. The instruments' reliability was determined using Cronbach's Alpha formula, with a coefficient ranging from 0.65 to 1 being sufficient for data processing and reporting. The data was analysed by the researcher, and the results were presented in descriptive and inferential analyses. Graphs, tables, and pie charts were used to show the research findings. The association between independent variables and the dependent variable was determined using Pearson correlation analysis and multiple regression techniques. The study hypotheses were tested at a 5% level of significance using the results of correlation and multiple regression analysis. For Pearson's analysis. Employee training had r = 0.429 (p-value = 0.039), various types of sales control had r = 0.936 (p-value =.000), various components of internal control had r = 0.997 (p-value = 0.000), and sales control challenges had r = 0.435 (p-value = 0.045). Because all of the p-values were less than 0.05, all of the correlation coefficients were significant. Employee training had a significant positive effect on financial performance (p-value=0.046), according to the results of regression analysis. With p-values of 0.046 and 0.021, respectively, various types of sales control and various components of internal control had a substantial beneficial effect on financial performance. The effects of sales control challenges on financial performance were substantial but unfavourable (p-value > 0.05). To prevent fraud and theft in sales control, the study recommends that policymakers employ more automated systems rather than manual ones. Restaurants and the hotel industry, for example, should use current technology and authorization procedures to reduce fraudulent behaviours. Finally, more research should be conducted in Kenyan unclassified restaurants to assess the impact of sales restriction in classified restaurants.