Nov 27, 2024
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Cost control is a crucial aspect of restaurant business analysis, aiming to maximize profits by setting realistic financial benchmarks and comparing projections to actual performance. It involves analyzing costs such as food, liquor, and kitchen equipment. Understanding cost control helps maximize profitability, identify expenses, and focus on areas that need improvement, saving money and time.
Restaurant food cost control is an ongoing process to lower business costs and generate more profits. It involves determining food and drink costs, finding ways to cut back, and assessing factors affecting costs. Accurate cost control helps predict future profits, set goals, and make growth plans, ultimately aiming to make more money while spending less.
Labor costs are skyrocketing
The increase in the minimum wage and the tight labor rules that punish flexibility in scheduling are both contributing factors to the growing price of labor.
Food costs have exploded
The cost of food has skyrocketed as a result of inflation and the high cost of gasoline.
Customer traffic is dwindling
Due to the fact that menu prices are increasing to compensate for these rising expenditures, customer traffic is decreasing, which results in customers having less money available to spend.
This creates a vicious cycle where every cost increase leads to higher prices, which in turn drives away customers. It's a frustrating and seemingly inescapable situation for many restaurant managers. The stress is real, and some are simply throwing in the towel.
But now is not the time to give up. Now is the time to double down on what you can control.
Optimize scheduling: Manage labor tightly without sacrificing service or speed. Utilize technology and forecasting tools to predict demand and schedule accordingly.
Maximize employee productivity: Keep your team busy with value-added tasks during every minute of their shifts. "If you've got time to lean, you've got time to clean" takes on a whole new meaning in 2025. Cross-train employees and empower them to take ownership of various tasks beyond their primary roles.
Explore labor-saving solutions: Consider pre-made products or automated systems that can reduce labor costs without compromising quality.
Minimize waste: Scrutinize your recipes for opportunities to reduce waste. Implement strict FIFO (First In, First Out) procedures and use date labels.
Streamline your menu: Reduce the number of items on your order guide and utilize ingredients in multiple recipes.
Optimize inventory management: Embrace vacuum packing and advanced storage methods to extend shelf life. Consider purchasing smaller packages for low-volume items to maintain freshness.
Adjust prep pars: Regularly analyze sales data and adjust your prep pars to align with current demand.
The restaurant industry has been hit hard these past few years. Soaring gas prices and inflation have sent food costs through the roof, forcing many restaurants to raise menu prices just to stay afloat. But here's the catch-22: while higher prices might preserve margins in the short term, they can also drive customers away.
We're seeing it now. Customers are tightening their belts, and those once-loyal diners might be thinking twice about that weekly dinner out. So, what's a restaurateur to do? How do you keep food costs down without sacrificing customer traffic?
At OpsAnalitica, we believe the answer lies in controlling what you can control. When it comes to food costs, that means focusing on these key areas:
1. Tighten Up Ordering:
2. Wage War on Waste:
3. Reimagine Prep and Storage:
4. Streamline Your Menu:
Ultimately, the key to managing food costs is holding your team accountable. It's not enough to just know these principles – they need to be put into action consistently, in every location, on every shift.
That's where OpsAnalitica comes in. Our platform helps you:
Anyone can pass a test, but changing behavior requires ongoing support and accountability. OpsAnalitica provides the tools and structure you need to create a culture of cost-consciousness and drive real results.
Ready to take control of your food costs? Click here to learn more about OpsAnalitica.
In today's challenging environment, customers are prioritizing the essentials. While exceeding expectations is always a goal, meeting these core needs will build a solid foundation for customer satisfaction:
Of course, friendly service is always appreciated! It adds a personal touch and enhances the overall experience. However, in these challenging times, focusing on these core elements will ensure a solid foundation for customer satisfaction.
The New Reality: One Strike and You're Out
Pre-pandemic, customers might have given a restaurant a few chances to redeem themselves after a subpar experience. Today, with tighter budgets and higher expectations, that leniency is gone. Customers are seeking perfection, and they have little tolerance for errors.
Controlling what you can control boils down to accountability. At OpsAnalitica, our platform empowers you to establish and maintain that accountability. We help you create and manage processes that address every aspect of your operation, from daily checklists to shift-by-shift performance tracking.
With OpsAnalitica, you gain real-time visibility into your operations, enabling you to identify and address issues proactively. We provide the tools you need to hold your team accountable and ensure consistent execution of critical tasks.
If you're ready to fight for your restaurant's success in these challenging times, OpsAnalitica can help. Learn more by clicking this link: https://www.opsanalitica.com/contact
Let's take control together.
As I sat in the general session at the recent Denny's conference, a key message from CEO Kelli Valade resonated deeply: "Control what you can control." This simple yet powerful statement is more crucial than ever in today's turbulent restaurant industry. It's no secret that restaurant owners are feeling the squeeze.