Restaurant cost control allows you to identify the areas of expenses and take corrective and preventive measure to keep a healthy ratio between expenses and finances.
1.Tracking and managing inventory
It is advised to conduct an inventory check regularly, perhaps once a week to track the most used items. You need to order inventory accurately, keep track of inflows and outflows in your restaurant in order to lower your variance and costs.
- Purchasing raw materials on credit
Opt for minimalist cash transactions and conduct all your purchases through the restaurant’s account on a credit basis. The raw materials purchased in cash are usually less in quantity and can turn out to be expensive as compared to when you are buying it in bulk.
- Controlling labor costs by reducing employee turnover
One of the most critical areas, where every restaurant owner should pay attention to is the retention of employees. Hiring a restaurant staff member requires a lot of resources starting from the interviews to training them appropriately.
- Restaurant yield management
Yield management is an integral part of cost control as it gives you an idea of the number of raw materials that would be used to prepare a particular food item.
Also, most ingredients are not too different in quality, but because of the grade difference, the price gap is a lot. See if you need an excellent ingredient for your dish or if one grade lower ingredient would also be fine and save some money.
- Controlling Wastage through Portion Control
Overproduction and big portions are the signs of wastage which lead to escalating food costs. Create a tracking chart based on below parameters:
Food returned by the customer
Food spilled in the kitchen or floor
Extra portions that get thrown away
One of the significant areas where restaurants lose out on a lot of money is internal thefts and pilferage. The lack of automation and reporting often leads to these rising costs. One way to control this is to assign roles and permissions for each activity.
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