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