Five Proven Ways to Control Your Food & Beverage Costs and SAVE MONEY
- May 25, 2020
- Posted by: Morgan Ayres
- Category: Cafe, Grocery, Restaurant
How to control your food and beverage costs. Keep reading for tips to keep costs in check.
Food and beverage cost of good sold, can be one of the top expenses for small cafes, and restaurants. Controlling these costs, and minimizing waste must be something your team members support and understand every day. Every employee plays a part in helping or hurting your bottom line, and all of them play a key role in keeping costs low.
At Pinnacle Hospitality Consulting we take a consistent and long-term approach to supporting your team to manage these costs. We will create a sustainable and replicable plan that if reviewed and followed regularly will have you managing your costs well, improving your bottom line!
Our approach starts from the bottom-up, not by simply fixing the surface problems in your business, but by going to the root of the problem and building a strong foundation to ensure success. Simple, easy and quick fixes like raising prices or decreasing portions are a short-term strategy that is not sustainable and will not make your customers happy.
We will work with everyone on your team to ensure you have alignment of food and beverage costing that works for everyone – yourself, accounting, the team members and the customers. Your goal of a great food cost will greatly depend on your type of restaurant.
The steps below are a great start towards your path of profit and growth. Pinnacle Consulting can help you with a free 30-minute consultation to go over efficiency and create a plan unique for your business to drive profits, decrease costs and make your business a success!
- Clean up your menu – remove low sellers, high-wasted items and/or high cost items. Ensure you regularly update your supplier and item costs so you know exactly what you are making, or losing on each product and recipe. We recommend changing menus quarterly and assessing prices at least once per year.
- Count and track your Inventory – Make sure your inventory is correct and that you have a tracking system in place, especially for your high-cost items. Knowing how much to order and how much is wasted will help you focus your team on the most impactful actions to take. Also, by counting regularly you can ensure inventory accuracy and track shrink, waste and potential theft. Make sure the inventory and invoicing is being consistently done on a weekly or monthly basis.
- Review prices and invoices often – Every order should be validated by a team member you trust. Have them look at prices, pack sizes, quantity and quality of the products and flag anything that is incorrect or not to standard. Compare pricing from a time that food costs were in the right position. Inventory and invoice accuracy is the key to managing inventory and costs – and also will help inform pricing of items as costs rise
4. Manage your waste – Waste is part of doing business in any foodservice or beverage operation. There are many ways to minimize and track this waste. If you are not already, start monitoring waste from kitchen prep to errors and spoilage. Adjust prep to lower waste or over-production. Fresh, high-quality products are what every customer is looking for. Look for opportunities to use products in other recipes (ie. Vegetables into soups.) Create a tracking system for any breakage, damaged, expired items. This will also inform your orders and adjusting pars.
5. Review your POS pricing – If you do not already, ensure you are regularly reviewing your point-of-sale system for current and up to date pricing. Every month or two you should do a full audit on your system to ensure your menu and pricing matches your system. Having even one item less or more, does not build confidence with your team or your customers, as well could attribute to loses in revenue. Do not forget to review your add-on’s and that items are being rung correctly by all team members.