Introduction. The number of restaurants has increased exponentially in most cities around the world. This is partly due to the explosion of the urban population, as well as the emergence of a working middle class who find themselves trapped by work in the cities where they reside. Restaurants offer consistent products, although service delivery may differ from location to location depending on needs. on the caliber of regular customers registered over a given period as well as on the target market. This means that in most cases, service delivery will remain the main success factor of any business in the hospitality sector. Below are the most suitable methods to increase the profitability of a fast food restaurant. a) Ensure efficient operations. A fast food restaurant will need to have a good pricing strategy to ensure that the competition does not not push the company into bankruptcy. This will ensure that the restaurant remains competitive. For effective cash flow management, management will need to create an environment in which each item has a visible price that reflects the cost of bringing it to the table as well as the profit margins targeted by the restaurant (Mark 1998). One step towards good receipt management will be to ensure that all products sold are paid for at the relevant time. Most restaurants adopt different methods when it comes to the above: • Some restaurants insist that a customer must pay for what they wish to take and then proceed to receive the order section to be served accordingly of the contents of the receipt (Dickson, 2008).• Other restaurants insist on adopting the service-first approach: a customer will be allowed to ...... middle of paper ......ues. The account is supposed to be reconciled and reviewed monthly. Must be very effective.-borders on labor issues.-LIKELIHOOD OF IMPACT RISK LEVELVery High Very Critical Very HighRISK #4: Extending credit to customers and intermediaries contrary to company policies. RISK DESCRIPTION CURRENT CONTROLS EFFECTIVENESS OF CONTROLS Company policy requires cash to be received before or after rendering a service. For commercial reasons, management granted credit to customers contrary to guidelines. The company's credit policy is that agents and direct customers strictly use cash and carry while selected customers have 30 days to pay their debts. Lack of proper monitoring of intermediaries results in a high probability of default. LIKELIHOOD OF IMPACT RISK LEVEL Very high Very critical Very high