Food is one of the largest expenses in the restaurant business, accounting for 28–35% of sales. Mismanaging such an important category could cut into profits and threaten the viability of operations. For this reason, there needs to be a balance between high-quality meals on offer and good control over expenditure. By taking organized approaches to tracking, analyzing, and optimizing food-related expenses, restaurant owners can ensure healthy profit margins while continuing to please customers.
Building a Standard Inventory System
Inventory tracking accurately forms the very foundation of food cost control. Take regular inventory counts to assure that you can know what you have on-hand with specific data on ingredients. A detailed inventory system helps reduce the risk of over-ordering or running out of essential items during peak hours. However, today’s tools, like a restaurant POS system that includes inventory, will simplify this and make the process of accounting for inventory more accurate and up-to-the-minute. This allows you to project with precision your needs for purchases and avoid various costly mistakes.
Optimizing Menu Design for Profitability
Your menu itself is a major influence in maintaining control of your food costs. Evaluate the actual cost of preparation and dish profitability, then concentrate on dishes providing the greatest margin of profit. Consider “menu engineering,” or positioning high-margin dishes in key positions. One can also bring to the attention of customers their signature dishes or items seasonal to their business. By making informed menu adjustments, you are in control of your food costs without sacrificing your dining experience.
Building Strong Relationships with Suppliers
A good relationship with your suppliers oftentimes will get you better pricing, consistent quality and reliable delivery schedules. Periodically review all supplier contracts to ensure that you are receiving competitive rates for their ingredients. Negotiate bulk discounts if necessary or consider other suppliers that can provide a better deal. Cost savings should never take precedence over quality. A reliable supplier partnership will also provide you with valuable information on the market trends about the availability of certain seasonal ingredients to plan your purchasing effectively.
Portion Control and Employee Training
The most straightforward approach toward food waste minimization is portion control. Employees in your kitchen must be trained in ingredient measurement and serving equal portions for each dish consistently. Use of tools like portion control scoops and weighing scales is helpful. This not only reduces food waste but also means the customers are assured of a consistent experience every time. Combine this with training for staff on how important it is to eliminate food waste at all stages of preparation and service.
Food Waste Monitoring and Practice Adjustment
Waste tracking has several uses in your kitchen. For any food being thrown out, record what type it is and how much of it was wasted on a day-to-day basis to locate inefficiencies that need attention. For example, if one ingredient is consistently wasted, that could be an indication of overordering or the need to alter menu offerings. Find ways to reuse extra ingredients into specials or to offer smaller portion sizes of a particular dish to reduce overall waste. By embedding a mindset of sustainability and efficiency in your culture, your restaurant will become more cost-effective.
Food cost management is a process that is never complete and requires a great deal of dynamism. Constantly go over your inventory, menu, and practices to find new avenues to improve. Involve your team in ways of reducing waste and controlling the costs, making this a team effort toward sustainability. Making food cost management part of your restaurant’s strategy will guarantee profitability while you deliver excellent customer experiences.
