Rising Food Costs Force Restaurants to Consider Cost Control Management

            Lancaster County is betterevidence that a restaurant’s future will be
known for their Amish toting country landscapesinfluenced by a more strict approach to cost
than their fine dining restaurants.  It is howevermanagement.
my home, and unfortunately I am what some            Many tasks and costs get
may consider a “restaurant fanatic”.  In aoverlooked in the frantic environment of the food
depressing return home to visit my parents lastindustry.  Tasks as simple as cutting lemons can
week, I was given the devastating news that 2be an excellent example.  An owner could
of the areas finest restaurants had closed theirscrutinize the actual cost of one type of lemon
doors due to their inability to survive the risingcompared to another, but why stop there.  In
food costs and a progressively stingy clientele.desperate times, owners are now beginning to
 In fact, restaurants all over the nation arenotice the smaller more intricate effects that this
struggling to get through our economy’slemon may have on their pocket.  How the
current recession.   Many intuitive ownersbartender cuts the lemon, or whether it is
however, are beginning to monitor their spendingautomatically offered on the brim of a water
more closely with the hopes of retaining an edgeglass may now be considered.
in a desperate industry.            Many new restaurant hotspots
            The recent rise in food costsare known for their creative and progressive
have been influenced by the increased demands inapproach to cuisine.  Fueled by inspiration, the
other countries, our decreasing dollar value, andchef’s techniques have lead to a decreasing
skyrocketing fuel costs.  An analysis from theuse of written and measured recipes.  Many
National Restaurant Association showed thatdishes and constantly changing seasonal menus
wholesale food prices increased by 7.6 percent inhave made it nearly impossible to trace individual
2007.  The price of eggs, a necessity to nearly allcosts.  Owners are now beginning to remember
restaurants, has increased about 187 percent inthe importance of a written recipe.  Years ago,
the last 2 years.  In an industry where themost restaurants would follow a recipe card night
average profit margin is only 4 to 6 percent,in and night out.  This old fashioned practice
even the slightest rise in costs can have amakes it easier to trace the costs of a certain
negative effect on a company’s net income.dish, allowing the management to make accurate
            The seriousness of thisand appropriate decisions concerning their profit
situation was first brought to my attention atneeds.  This doesn’t mean that the recipe
work.  While propped behind my country clubcan’t be altered to meet the needs of a
bar, a local “restaurant legend” sat downtrendy food scene. It’s just a cost basis for
for a quick lunch before a round of golf.  Beingthem to work from.  Additional items can be
an inspiring restaurateur, I began to pick his brainadded or subtracted in response to rising or
as usual.  After referring to my dreams oflowering food costs.
owning a restaurant someday, he interjected with            In a new and fragile restaurant
a devastating comment insisting that I findindustry, cost management has become one of
another dream.  He then went on to say thatthe owner’s most important success
rising food costs have made it nearly impossiblefactors.  Personally, I can’t stand to see
for anyone to make any money.  In a recentanother great neighborhood restaurant throw in
article in the Philadelphia Inquirer, he spoke of athe towel.  Restaurant owner’s listen up, if
new scale that he installed in his restaurant toaccounting isn’t one of your strengths, hire a
weigh the incoming fish and meat. “You reallycost accountant or consultant before it’s too
have to make sure that you’re not payinglate.  If you do it now, you may still be able to
for ice and water.”  Statements like this areobtain an advantage on your competitors.