| Controlling costs isn't so much about
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| | pricing and purchasing decisions
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| reducing them as it is about maximizing
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| | accordingly.
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| the value for your guests. Restaurateurs
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| | 2. Portion Training
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| tend to look at theft, over portioning
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| | When a new team member comes on board,
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| and shrinkage in terms of what it does to
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| | are they shown how to estimate portions?
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| us as owners and managers. If we are to
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| | Do they check those estimates against a
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| take a customer-centric approach to the
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| | scale or other measure?
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| problem, we begin with the question "What
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| | 3. Prep Guides
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| is the end result of these actions on my
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| | How do you decide how much raw product to
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| guests?"
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| | prep into your restaurant made sauces and
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| Theft is an easy example. An employee
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| | other items? Key decisions like this
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| that steals from you causes your Cost of
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| | should be thought out with all of the
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| Goods sold to increase which must be
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| | appropriate information at hand.
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| compensated for by raising prices.
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| | 4. Purchasing
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| Raising prices in turn decreases the
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| | Reduce the number of vendors you deal
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| value of the customer's experience. The
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| | with - How many suppliers do you work
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| long term effect of this is that the
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| | closely with? Have you spelled out
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| customer count decreases which leads to
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| | expectations on produce, meats and other
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| lower sales.
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| | perishables? Do you go back and forth
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| A customer-centric look at
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| | between suppliers, focusing on price
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| over-portioning may at first look like a
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| | rather than quality? Instead, try
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| benefit to customers, but nothing is
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| | focusing on one main supplier and
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| truly free, so if they aren't paying for
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| | establish strict expectations with them
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| it in the French fries on their plate,
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| | for quality. Nearly all suppliers treat
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| they'll pay for it with a beer price that
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| | customers like that better than the
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| could be priced 25 cents lower. While
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| | "shoppers". By concentrating your volume,
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| this may seem insignificant, the next
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| | you'll gain leverage with the supplier as
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| point isn't so benign. Over-portioning is
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| | well.
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| rarely consistent. This means that the
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| | 5. Systemize Ordering
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| customer that is delighted with the huge
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| | How do you decide how much product to
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| portion of French fries will be
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| | order? Here's a hint, if you're sitting
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| disappointed with a normal portion on
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| | at a desk to do your order, it's probably
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| their next visit. Major players in the
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| | wrong. Great operators walk through the
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| fast food industry have shown how to
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| | restaurant's coolers, freezers, and dry
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| handle this problem head on. McDonald's
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| | storage while deciding how much to order.
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| has changed their portions and packaging
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| | In addition, they refer to the previous
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| over the years to make it physically
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| | few weeks of usage to root out any trends
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| impossible to over-portion their fries.
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| | or opportunities in their purchasing. As
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| This means that your fry box always seems
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| | well, they see the condition of what's in
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| to be spilling over with fries. It shows
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| | stock and act accordingly.
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| how seriously they take consistency in
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| | 6. Systemize Receiving
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| their business and gives us a glimpse at
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| | Do you have a process for receiving?
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| how they have become the world's number
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| | There are four basic steps to receiving
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| one operator.
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| | the order
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| Shrinkage or spoilage is the third issue
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| | - Check for completeness and accuracy
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| that not only hits our bottom line but
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| | - Check for quality of product,
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| also our customers. Inefficient
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| | especially produce and meats
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| purchasing creates crisis situations (we
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| | - Contact your representative for any
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| need to get rid of this lettuce) and
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| | credits
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| inferior product for your guests. Not
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| | - Date all products received
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| ordering enough on the other hand creates
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| | 7. Inventory Controls
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| shortages and also results in unhappy
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| | Appropriate inventory controls are
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| guest experiences.
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| | critical to closing the loop on
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| Seven Strategies:
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| | controlling your costs. While they can be
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| So we've seen that these things hurt our
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| | simple, the solution should be robust
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| guests as well as ourselves. What can we
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| | enough to alert you to trouble spots in
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| do to fix them?
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| | your kitchen and on your menu.
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| 1. Menu Development
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| | Always keep in mind that your Cost of
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| Do you have a Products Standards Manual?
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| | Goods Sold Percentage only tells you
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| If you do, do the portions listed reflect
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| | about a part of your business. It won't
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| what's actually going on day-to-day.
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| | tell you if your customers are unhappy
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| We've seen situations where the portion
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| | with portion sizes or if your service
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| size listed in the manual was 40% less
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| | levels are suffering. It's up to you as
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| than what was actually going onto plates.
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| | an excellent operator to balance all of
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| Correcting this meant actually changing
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| | the areas of your business.
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| the size in the manual and adjusting
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|