Do You Have a Food Cost Problem?

If you are experiencing high food costs, some possible areas of concern may be:

  • No balance of high and low-cost items on your menu.
  • No consideration of locally obtainable products.
  • No competitive purchase plans.
  • Theft in any form.
  • Purchasing more than needed (spoilage).
  • No daily check of invoices, quality, and prices.
  • No rotation procedures.
  • No perpetual inventory.
  • No controls on issue items from the storage areas.
  • Low yields on products.
  • Over preparing.
  • Not following or using recipes.
  • Not following exact portion sizes.
  • Improper handling (Wrapping, rotating, storing).
  • No reconciliation of sold vs. used.
  • Employee theft.

Do you know how to control your labor?

The best time to control labor cost is in advance. The key to advance control lies in efficient scheduling, and efficient scheduling requires an understanding of the quantitative and qualitative aspects of each job category and the forecasted level of business activity.

One cannot forecast without knowledge of what transpired in the past and the conditions which impacted sales activity.

Once labor cost has been incurred, it cannot be lowered or recovered. If you were overstaffed yesterday, you cannot recover the cost by under staffing tomorrow. Therefore, you must schedule only the amount of labor hours needed for the forecasted volume of business activity.
“Pre-controlled” implies advance planning compared with “after the fact” corrective action.