| Controlling costs isn't so much about | | | | and adjusting pricing and purchasing |
| reducing them as it is about maximizing | | | | decisions 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 | | | | are they shown how to estimate portions? |
| to us as owners and managers. If we are | | | | Do they check those estimates against a |
| to take a customer-centric approach to | | | | scale or other measure? |
| the problem, we begin with the question | | | | 3. Prep Guides |
| "What is the end result of these actions | | | | How do you decide how much raw product |
| on my guests?" | | | | to prep into your restaurant made sauces |
| Theft is an easy example. An employee | | | | and 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 | | | | customers like that better than the |
| that could be priced 25 cents lower. | | | | "shoppers". By concentrating your |
| While this may seem insignificant, the | | | | volume, you'll gain leverage with the |
| next point isn't so benign. | | | | supplier as well. |
| Over-portioning is rarely consistent. | | | | 5. Systemize Ordering |
| This means that the customer that is | | | | How do you decide how much product to |
| delighted with the huge portion of | | | | order? Here's a hint, if you're sitting |
| French fries will be disappointed with a | | | | at a desk to do your order, it's |
| normal portion on their next visit. | | | | probably wrong. Great operators walk |
| Major players in the fast food industry | | | | through the restaurant's coolers, |
| have shown how to handle this problem | | | | freezers, and dry storage while deciding |
| head on. McDonald's has changed their | | | | how much to order. In addition, they |
| portions and packaging over the years to | | | | refer to the previous few weeks of usage |
| make it physically impossible to | | | | to root out any trends or opportunities |
| over-portion their fries. This means | | | | in their purchasing. As well, they see |
| that your fry box always seems to be | | | | the condition of what's in stock and act |
| spilling over with fries. It shows how | | | | accordingly. |
| seriously they take consistency in their | | | | 6. Systemize Receiving |
| business and gives us a glimpse at how | | | | Do you have a process for receiving? |
| they have become the world's number one | | | | There are four basic steps to receiving |
| 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 | | | | 7. Inventory Controls |
| creates shortages and also results in | | | | Appropriate inventory controls are |
| unhappy guest experiences. | | | | critical to closing the loop on |
| Seven Strategies: | | | | controlling your costs. While they can |
| So we've seen that these things hurt our | | | | be 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 | | | | about a part of your business. It won't |
| reflect what's actually going on | | | | tell you if your customers are unhappy |
| day-to-day. We've seen situations where | | | | with portion sizes or if your service |
| the portion size listed in the manual | | | | levels are suffering. It's up to you as |
| was 40% less than what was actually | | | | an excellent operator to balance all of |
| going onto plates. Correcting this meant | | | | the areas of your business. |
| actually changing the size in the manual | | | | |