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Controlling Your Restaurant's Costs: 7 Strategies You Can Use Today

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




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