| Whether you are running a new restaurant or an | | | | That means that you need to rotate your stock |
| older restaurant, it is critical that you understand | | | | when you get deliveries. |
| how to control your costs. In fact, the biggest | | | | When you get that fresh case of steaks, you |
| reason why restaurants fail is that the | | | | need to make sure that the steaks that are |
| restaurants owners or managers don't take the | | | | already in the walk-in get moved to the front of |
| steps to keep their food costs under control. | | | | the shelf, and the newer items are placed behind |
| In order to control your costs you need to pay | | | | it. Make sure that proper rotation is done every |
| attention to the 7 steps in the food cost control | | | | time. |
| cycle. These steps are: forecasting, ordering, | | | | You should also make sure to date everything |
| receiving, storing, handling, service, and payment. | | | | that goes into storage. You need to pay attention |
| Failure in any of these areas can result in your | | | | to those dates so that your food does not expire |
| food costs going up, which is why restaurants fail. | | | | before it gets used. |
| Forecasting | | | | Handling |
| Before you place your food order, you need to | | | | That step where most food cost gets out of |
| know how much food you will need to order. | | | | control is in the handling step. That is where your |
| Order too much food and you risk losing food | | | | cooks are preparing the food for service, or to |
| because it has spoiled or expired. Order too little | | | | be used later. This is where training is critical, but |
| and you will run out of items and lose the sales. | | | | is all too often missed. |
| One of the restaurants owners and managers | | | | If your cooks do not know how to trim and cut |
| responsibilities is to keep records of your | | | | the meat they are working on, too much will end |
| operation. By looking at past sales records you will | | | | up in the trash. If food is left out too long it will |
| be able to predict how much food you will need. | | | | go bad more quickly. If menu items are not |
| By looking at your sales for the week before | | | | properly prepared they will not be able to be |
| Christmas last year, you will get a good idea of | | | | served, and will end up being thrown out. |
| what to expect for the week before Christmas | | | | Train your staff how to read and follow recipes |
| this year. | | | | and procedures, then inspect their work to make |
| This step can be difficult for new restaurants, but | | | | sure they are doing what they are supposed to |
| over time you will build a database of past | | | | do. |
| performance that can be used for your | | | | Service |
| forecasting. | | | | Set a policy that nothing leaves the kitchen unless |
| Ordering | | | | it is first rung through the proper ordering |
| You should know who you order all of your stock | | | | procedure. If you are using a POS system, then |
| items from, so when you do your ordering you | | | | nothing get prepared without the proper chit or |
| will sit down and write up a purchase order for | | | | receipt. |
| each supplier. Do this even if you are not | | | | Do not allow your servers to get away with |
| submitting the purchase order to the vendor. | | | | rushing into the kitchen claiming that they need |
| Many suppliers will take your order over the | | | | the cooks to prepares something on the fly with |
| phone, or they will allow you to place the order | | | | the promise that they will ring it up when they |
| online. The written purchase order can be used | | | | get the chance. Those meals may end up at the |
| when you place that order. | | | | table of a friend or family member, and you will |
| Receiving | | | | not see a dime for it. |
| One step that many restaurant owners miss is to | | | | Receiving Payment |
| have set times for deliveries. As the restaurants | | | | If you have a good meal ordering procedure in |
| owner or manager you have the right to set an | | | | place, this step takes care of itself. It is still a |
| acceptable window for deliveries. This is important | | | | good idea to periodically check random items to |
| because if you know when your deliveries are | | | | ensure the procedures are being followed. |
| expected, you can have a trained person available | | | | Choose an item to track at the beginning of the |
| to accept those deliveries. | | | | day to track. Count that item, then recount at |
| When the delivery comes the person that is | | | | the end of the service period. Compare the |
| accepting the delivery can use the purchase order | | | | number of items that are missing with the sales |
| that you prepared to compare what was ordered | | | | receipts for the day. If procedures are being |
| with what was delivered. It removes a lot of the | | | | followed, the numbers should match. |
| guess work. | | | | In order to avoid the biggest reasons why |
| Make sure that the person that is receiving the | | | | restaurants fail, learn to control your food costs. |
| items counts and weighs everything that comes | | | | Whether you are the restaurants owners or |
| off of the delivery truck. Make sure that you are | | | | managers, whether you are operating a new |
| actually receiving everything you are paying for. | | | | restaurant or an established restaurant, the steps |
| Storing | | | | to control your costs are the same. |
| First In - First Out. That is the cardinal rule for | | | | Start controlling your costs today, and watch |
| food storage. It means that the first thing into | | | | your profits rise. |
| the storage area is the first thing to come out. | | | | |