Controlling Restaurant Food Costs
Are You in the G.A.M.E. of Controlling Food Cost?
The manager was puzzled. For the third month in a row things were not adding up quite right. He was ecstatic that the restaurant was busier than they had been in months. Customer counts were up, yet oddly enough the sales and projected profits did not reflect the increase in business. He was now dejected at the lost bonus that would have been associated with higher profits. “How could this be?” he pondered.
Controlling and preventing losses presents a unique challenge in the Quick Service Restaurant (QSR) environment. Losses occur from many sources including neglected policies and procedures, poor training, unsafe work habits and conditions, undisciplined supervision, and crime. One of the most often overlooked and potentially highest drain on profitability is the cost related to the improper ordering, storing, inventory, preparing, cooking, and selling of the food. If uncontrolled, each can be responsible for a serious drain on profits. When several of these areas are uncontrolled, the resulting losses can be devastating to the health of the business. A comprehensive loss control program can sort it all out and address the issues that put people and profits at risk.
Sound restaurant loss prevention programs place an emphasis on controlling the issues that may negatively affect food cost. Establishing and improving routines in these key areas will improve restaurant profit margins. Restaurant loss control professionals utilize the G.A.M.E. problem solving model to identify and resolve the areas that drain your profits.
G – Gather facts to identify the problem
If routine audits of cash, security, safety, and food management are not in place, that can identify issues related to high food cost, consult with a restaurant loss prevention professional to design and implement them as part of a comprehensive loss control program.
A- Analyze to determine why it may be happening
Root causes of high food cost are identified and analyzed. By having a loss prevention professional with a comprehensive plan identify and analyze the root causes of drains on profit, saves you time, effort, and money.
M – Make a plan
A plan is made to address each of the areas that have been identified as contributing to high food cost.
Needs are identified and priorities established. Retrain managers and employees on existing policies and procedures, and refocus efforts. Establish measurable goals and timelines to correct issues and assign who is responsible and accountable for corrections.
E – Execute the plan
The plan is implemented and target dates are established to review the progress of the plan. Corrections and adjustments are made as necessary to maintain positive progress with the plan.
Consult with a loss control professional to implement your G.A.M.E. plan today! Learn how a comprehensive loss control program can identify the profit draining issues surrounding high food cost. Reap the rewards of a well trained staff, executing the fundamentals of loss prevention that make your restaurant more profitable.
Complete this free assessment quiz on your food cost reduction efforts.