Blogging about a food industry that's in transition.
If you use a 10% safety factor when ordering perishable food, try 9% for a few weeks. If it works, keep slicing until you hit 5%.
Is waste a problem? Designate a special waste basket for spoiled food. Weigh this basket daily. Record the weights on a chart.
Your food cost % tends to have a direct relationship to the number of perishable items offered. The more items, the higher the %.
I have rarely observed an ambitious brunch layout with a food cost below 40%. However, focused breakfast menus routinely hit 25%.
Get every dollar of sales. Make sure after dinner coffee, tea and desserts are entered in the POS. Comps need to approved.
Your menu is a portfolio. Each item’s profit =count X (price-cost). Focus on the quality, price and cost for all top sellers.
Many operations have too much sales volume volatility to utilize par levels for perishable protein items. Don’t go on auto-pilot.
Don’t just look at the cost per pound when buying bulk meat. The yield is just as important. Think in terms of portions per $100.
Food cost volatility is a warning sign of a major problem. If your food cost percentage jumps up and down, count frequently.
Eliminate “blowout specials” and freezer burned mistakes by using ingredients from your base menu for your daily specials.
Invest in accurate scales. You need a large scales by the loading dock and one or more small scales for portion control.
If you like cam systems, put a cam by your back door and garbage area. Review the tape from an hour before close to 2 hours later.
For most dinner houses, Friday night is prime time. Great portion control on Friday will put big dollars in the bank.
The 80/20 principle works with food cost variances. A tiny number of ingredients produce a huge % of your variance.
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An overview of issues for basic recipe costing, by Joe Dunbar.
Food Cost Control for Restaurants
Lowering Food Cost through Key Item Analysis & Management
Part two - beyond the basics of Food Cost Control, by Joe Dunbar
Reporting on inventory variances
Joe Dunbar’s tips on reporting inventory variances to the management group.