How to control your food and beverage costs in 2024!

Food and beverage costs can be one of the biggest expenses for small cafes and restaurants. However, it is essential to control these costs to ensure the business’s profitability. Minimizing waste and managing costs require the support and understanding of every team member. Every employee plays a vital role in keeping costs low and ultimately contributing to the business’s success.

At Pinnacle Hospitality Consulting, we believe in taking a consistent and long-term approach to support your team in managing food and beverage costs. Our aim is to create a sustainable and replicable plan that, when reviewed and followed regularly, will help you manage costs effectively and improve your bottom line.

Our approach starts with the foundation of your business. Instead of merely fixing surface problems, we go to the root of the issue to ensure long-term success. Short-term fixes, such as raising prices or decreasing portion sizes, are not sustainable and will not make your customers happy. Therefore, we work with your team to create a plan that aligns with everyone’s goals, including yourself, accounting, team members, and customers.

Here are six key points to help you control your food and beverage costs:

1. Understand Your Food and Beverage Costs

The first step in managing food and beverage costs is to understand the costs. You need to know how much each dish costs, including the ingredients, labor, and overheads, such as rent and utilities. To calculate the cost of a dish, add up the cost of all the ingredients and divide by the number of portions it makes. Add the labor and overheads to this figure to get the total cost per dish.

2. Create Standard Recipes

Creating standard recipes for each dish will ensure consistency in the ingredients used and the portion sizes. Standard recipes will also help you calculate the cost of each dish accurately. Make sure to update the recipes regularly to reflect any changes in ingredient costs.

3. Monitor Inventory

Monitoring inventory is essential in managing food and beverage costs. Keep track of the inventory levels for each ingredient to avoid over-ordering or running out of stock. This will also help you identify any waste or theft in the kitchen.

4. Train Your Team

Every team member plays a vital role in managing food and beverage costs. Train your team on the importance of minimizing waste, portion control, and using ingredients effectively. Encourage them to come up with ideas to reduce costs and improve efficiency.

5. Review Your Menu

Regularly reviewing your menu will help you identify any dishes that are not profitable or selling well. Consider removing these dishes or changing the ingredients to reduce costs. You can also introduce new dishes that are profitable and popular with customers.

6. Control Portion Sizes

Controlling portion sizes is an effective way to manage food and beverage costs. Ensure that the portion sizes are consistent and in line with the menu prices. Train your team on portion control and use measuring tools to ensure accuracy.

In conclusion, managing food and beverage costs is essential for the success of any restaurant or café. Understanding your costs, creating standard recipes, monitoring inventory, training your team, reviewing your menu, and controlling portion sizes are key steps in managing costs effectively. At Pinnacle Hospitality Consulting, we can help you create a customized plan to manage costs, drive profits, and make your business a success. Contact us for a free 30-minute consultation to discuss how we can help your business today!