Under what scenarios could a foodservice operation achieve excellent food and beverage cost percentages, yet incur excessively high labor costs?

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Explanation:

One of the ways a food service operation department can achieve an excellent food and beverage cost percentages is if they make sure that they reduce excess inventory levels.

In the question above, we can make the following deductions;

(1). The variable cost increases as sales volume increases and decreases as sales volume decreases, and this is Okay, there is no problem with the variable cost.

(2). The food service quality is fine.

(3). Fixed cost is not okay.

The deductions (1) and (2) are the scenarios where food service operation achieve excellent food and beverage cost percentages.

Deduction (3) where the labour cost is high is when there are many workers working in the restaurant/hotel, and less customers. Therefore, the profits the company is making is less.

The three deductions are the scenerios