3 Ways To Control Your food Costs
By Dwayne Reno
The loonie is still slowing down, but that has not stopped the grocers who seem to be raking in big profits while Canadians shell out more and more for food.
Metro just announced that profits are up 24% amid rising food costs, here. Meanwhile food banks across Canada are feeling the pressure as rising food costs send lower income families through their doors.
Foodservice operators are also trying to keep food costs low and profits high in a very competitive industry. This week I would like to discuss 3 ways foodservice operators can control food costs.
Furthermore if you need more help managing your food costs, check out our food costs checklist, here. We are also available to help, just book an appointment or call us, here.
1. Managing your ingredients
Proper ingredient management is crucial for foodservice operators; especially during times of soaring food prices. A standardized menu will insure that your costs stay the same, keeping profits consistent.
Benefits: Knowing the individual cost of each ingredient in each dish can help you determine whether your menu prices cover your overhead and food costs. It will also help to determine the target food cost percent you want for menu items.
2. Managing your waste
Many foodservice operators are throwing money in the trash. Knowing what is going into the garbage is another great way to manage your food costs. Work with your staff to find out what customers are leaving on their plates. You would be surprised to see how much can be saved by simply reducing the amount of sides that come with an order.
Benefits: Waste management will help you save money.
This is the first place you should start simply because many operators offer huge portions and some of it ends up in the trash. Start with sides and condiments as they tend to end up in the trash.
3. Stock Rotation
I have seen many operators over order or lose stock to spoilage because they don’t have a system in place that will help staff know when to rotate stock. Having a simple color system in place can elevate most of your problems such as spoilage and over ordering.
Benefits: Less spoilage will accrue reducing the need to over order. Getting this right will help to increase your profits.
Lastly, our foodservice management tool will be released later this year. If you would like to know how it will help your restaurant, bar or cafe, here.
Until next time your customers want to know why they should spend money at your restaurant, bar or cafe. So give them the goods!
Need inspiration? Checkout some of our services.
Dwayne Reno CEO & Founder
Social Chat Blog
Once a month, Building Block Associates serves up some food for thought with our foodservice Social Chat Blog.