MACCHU PICCHU FIRST OPERATIONAL REVIEW

Audit Observations, Cost Performance and Required Actions

Period: August–September 2026

FSA services commenced in August 2026

Purpose of the First Review

FSA commenced operational audits and spot checks at Macchu Picchu in August 2026. The first phase focused on identifying operational gaps across the kitchen, stores, receiving, purchasing, inventory, bar, POS documentation and F&B cost reporting.

The observations were discussed with the concerned operational personnel and departmental heads during the audits. Their explanations and proposed responses were recorded in the observation reports. The reports establish that the operational teams were made aware of the identified gaps. They do not establish that every corrective action has been completed or that the revised controls are operating consistently.

The next phase requires the operational team and departmental heads to take corrective action, submit supporting evidence and prevent recurrence.

Audit Coverage from 12 August to 8 September

12 August 2026

Kitchen storage, food segregation, product labelling and deep-freezer hygiene

13 August 2026

Liquor inventory, unsecured stock, incorrect bottle UOM, inaccurate item descriptions and excess stock holding

14 August 2026

Supplier challans, receiving documentation, food-store hygiene and cocktail recipes

19 August 2026

Kitchen orders versus supplier receipts, incorrect UOM and requisition-to-system issue verification

22 August 2026

POS exception documentation and repeated non-availability of approved cocktail recipes

25 August 2026

Expired bar stock and incorrect accounting classification

29 August 2026

Inventory item codes, brands, UOMs, pack sizes and conversion factors

3 September 2026

Missing receiver signatures and malfunctioning weighing equipment

8 September 2026

Unattended supplier deliveries, incomplete receiving stamps, missing bar measuring equipment and absent FIFO tags

Source: FSA Macchu Picchu Audit Observation Report August 2026, pages 1–11; FSA Macchu Picchu Audit Observation Report August–September 2026, pages 1–14

First-Month Management Overview

Food Safety & Storage

Unsafe segregation, inadequate date tagging, expired products, poor store hygiene and pest activity

Receiving & Purchasing

Incomplete supplier documentation, unreliable weighing, unattended deliveries and order-to-receipt differences

Inventory Records

Incorrect item descriptions, UOMs, pack sizes, conversion factors and stock locations

Bar & Revenue Controls

Missing cocktail recipes, unsecured stock, incomplete POS exception records and inadequate open-bottle measurement

Accountability

Operational personnel were informed during the audits, but the reports do not contain complete evidence of implementation and closure

The audit has created visibility. Operations must now convert that visibility into corrective action.

Source: August–September Audit Observation Report, pages 1–14

August Cost Performance Improved Despite Lower Sales

₹26.51L

August F&B Revenue

Sales movement from July: down approximately 8.1%

12.6pp

Purchase Ratio Improvement

Before FSA: 39.9% → August: 27.3%

5.6pp

Net F&B Cost Improvement

Before FSA: 38.5% → August: 32.9%

Source: Macchu Picchu F&B Cost Report 2026, pages 1–3; July and August sales comparison from Macchu Picchu F&B Cost Report 2026 workbook

Food Safety Observations Require Immediate Action

12 August 2026 — Kitchen and Deep Freezer

  • Seafood and chicken were stored together without proper segregation.
  • Vegetarian and non-vegetarian preparations were stored together.
  • Paneer was found uncovered and without date tags.
  • Locally sourced tofu did not have a manufacturing date, expiry date or internal date tag.
  • Local curd did not have manufacturing or expiry information.
  • The deep freezer was not maintained in a clean condition.
  • Discussed with Chef Mukta, Head Chef. Response referred to non-standard products being received at the outlet.

25 August 2026 — Bar Stock

  • One packet of litchi juice valued at ₹117 had expired on 8 August 2026.
  • One packet of apple juice valued at ₹108 had expired on 16 August 2026.
  • Total expired stock identified: ₹225.
  • The expired stock was subsequently entered as complimentary consumption under Bill No. C48. The entry did not correctly represent the expiry or spoilage loss.

14 August 2026 — Food Store

  • Small cockroaches were observed around the refrigerator holding fish, chicken and dairy products.
  • Plastic crates were dusty and unclean.
  • Food packets did not have identifiable expiry details.
  • Food display stands were rusted and unhygienic.
  • Trash and cobwebs indicated inadequate housekeeping.
  • Store racks did not have identification labels.
  • Response recorded from Mr. Palkar referred to inadequate store space.

8 September 2026 — Kitchen Refrigerator

  • FIFO and expiry-date stickers were not available on Indian food items stored in the refrigerator.
  • The report records that the kitchen team intended to begin the FIFO-tag system.

Source: August–September Audit Observation Report, page 1 dated 12 August; page 5 dated 14 August; page 10 dated 25 August; page 14 dated 8 September 2026

Receiving Practices Require Clear Ownership

14 August 2026

  • The original challan book belonging to Mahalaxmi Vegetables was kept with Store personnel.
  • Challan No. 15108 was used for the 31 July delivery and reused for the 1 August delivery.
  • The second or pink copy of the earlier challan was used for the subsequent delivery.
  • Receiving date, receiving time and receiving stamp details were not properly maintained.
  • Discussed with Mr. Palkar in the Store/Purchase function.

3 September 2026

  • New Siddhivinayak Dairy Bill No. 6512, valued at ₹900, did not contain the receiver's signature.
  • A Wahid Bakery bill valued at ₹74 did not contain the receiver's signature. Bill number was not mentioned.
  • Total value of the unsigned bills checked: ₹974.
  • The weighing machine used during vegetable receipt produced continuously fluctuating readings.
  • Response recorded in the report stated that management approval was required to purchase a new machine.

8 September 2026

  • New Siddhivinayak Dairy Bill No. 6690, valued at ₹1,780, was left with the delivery in the kitchen.
  • Wahid Bakery material valued at ₹74 was left without documented receiving verification.
  • Sheldon Bill No. 60882, valued at ₹230, formed part of the unattended delivery observation.
  • Total value of the unattended deliveries: ₹2,084.
  • No authorised person checked or acknowledged the materials before the suppliers left.
  • Milk and other perishable materials were exposed to delayed verification and storage.
  • Supplier-bill receiving stamps still did not contain the actual receiving date and exact time.

Source: August–September Audit Observation Report, pages 4–5 dated 14 August; page 12 dated 3 September; page 13 dated 8 September 2026

Item-Master and UOM Errors Affect Cost Reliability

Incorrect item descriptions, UOMs, pack sizes and conversion factors affect inventory quantities, valuation, departmental issues, recipe costing and reported consumption.

Source: August–September Audit Observation Report, page 2 dated 13 August; page 7 dated 19 August; pages 10–11 dated 29 August 2026

Ordered, Received and Issued Quantities Did Not Always Match

Hencraft Foods Private Limited — Invoice No. 2026-27/HFPL2049 (19 August 2026)

Godrej Foods Limited — Invoice No. 3012729296 (19 August 2026)

Total Checked Variance

Peshawari Tandoor — Requisition No. 1035 (18 August 2026)

Source: August–September Audit Observation Report, pages 6–7 and page 8, audit dated 19 August 2026

Bar, Recipe and POS Documentation Gaps

13 August 2026 — Unsecured Stock

Beer and wine stock was stored openly in the restaurant because of space constraints. The stock was not secured under lock and key. Jack Daniel's Whisky 750 ml: 25 bottles at ₹3,509.04 per bottle; total stock value ₹87,726. Management needed to review the holding against consumption before further procurement.

14 August 2026 — Cocktail Recipes Unavailable

Standard cocktail recipes were not documented or available. The recipes required to verify ingredients, liquor measures, yield and preparation method could not be produced. The matter was discussed with Mr. Shankar, F&B Manager.

22 August 2026 — Repeated Recipe Gap & POS Records

Standard and signature cocktail recipe sheets were again unavailable or not displayed. The same subject had already been identified on 14 August. Supporting records were not properly maintained for void BOTs, void KOTs, complimentary bills, discount bills and modified or void bills. Complimentary and discount SOPs or policies were not available for verification.

25 August 2026 — Expired Stock Misclassified

Expired juices valued at ₹225 were recorded as complimentary consumption after the audit identified them. This distorted the classification of expiry loss and complimentary usage.

8 September 2026 — No Liquor Measuring Jar

No measuring jar was available for measuring liquor in open bottles. The response recorded in the report stated that the bar was not using a measuring jar. The absence of measuring equipment affected the reliability of open-bottle inventory.

Source: August–September Audit Observation Report, pages 2–3 dated 13 August; page 6 dated 14 August; page 9 dated 22 August; page 10 dated 25 August; page 13 dated 8 September 2026

Repeated Observations Require Management Follow-Through

Source: August–September Audit Observation Report, pages 1, 5–6, 9 and 13–14

Responsibility After an Audit Observation

1

FSA Audit Team

  • Conduct the review
  • Record the actual instance
  • Discuss the observation with the concerned personnel
  • Explain the risk and recommended action
  • Follow up and verify the evidence submitted
2

Operational Personnel

  • Take immediate corrective action within their area
  • Maintain the required records
  • Follow the approved operational process
  • Provide completion evidence to the department head
3

Department Heads

  • Assign a responsible action owner
  • Confirm the completion date
  • Arrange the required resources or approvals
  • Check whether the corrective action is operating consistently
  • Prevent recurrence
4

Unit & Operations Leadership

  • Resolve infrastructure and approval constraints
  • Review critical, repeated and overdue observations
  • Hold the relevant department accountable for action

Communication references recorded in the reports: Chef Mukta, Head Chef · Mr. Palkar, Store/Purchase function · Mr. Shankar, F&B Manager · Mr. Subramaniam, Bar Head/Bar Manager

Required Outcomes from the Review Meeting

The meeting should conclude with agreement on the following:

1

Food Safety & Containment

Immediate containment of the identified food-safety risks. Correct classification of expired and spoiled stock.

2

Ownership & Accountability

Named operational ownership for every major observation. Department-head accountability for implementation and follow-through. Completion dates for pending actions.

3

Equipment & Controls

Repair or replacement of the vegetable-receiving weighing machine. Availability and use of a suitable liquor-measuring jar. Approved cocktail recipes for all standard and signature cocktails.

1

Records & Documentation

Correction of item names, UOMs, pack sizes and conversion factors. Historical reconciliation before adjusting incorrectly mapped inventory. Receiving acknowledgement with date, exact time and authorised signature. Complete support for void, discount, complimentary and modified transactions.

2

Evidence & Follow-Up

Supporting evidence before an observation is treated as closed. Management review of repeated and overdue observations.

3

Next Steps

Date of the next operational review to be confirmed and agreed at the close of this meeting.