Food Cost Control for Restaurants

Store managers should do beginning and ending inventories for key items that have variance issues and compare the actual usage from these inventories against the product mix by following the procedures set forth above. Operators should also make sure that accurate inventories are being taken and that purchases are being accurately recorded. It is recommended that when trying to identify key item usage variances that operators do not use too small of a sampling period. The larger the sampling period, the greater the accuracy of the result. I recommend that quarterly variance analysis be executed at first to identify usage variance trends that require further investigation. Following this method will eliminate wild goose chases that end up being a result of poor inventory figures, rather than actual usage variances.

In conclusion, it is a well-know fact that the food service business can be one of both stress and excitement. Operators often find themselves trying to prioritize and balance their time amongst the competing needs required by the operation. Executing the key item analysis and key item management techniques described above have helped many operators balance their time constraints with the need for implementing effective food cost control systems.

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(0) Comments • Permalink • 09 19 2008

• Joe Dunbar
• Reprinted with permission by Food Cost Solutions
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