Reducing Restaurant Food Costs

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Iron Mountain Refrigeration Equipment

• Restaurant Food Costs Pleasant Prairie

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Reducing Restaurant Food Costs

• We are well aware that the purpose of any
  business is to generate high profitability at the
  lowest possible cost since this will translate
  into higher income. Although it may seem logical,
  not all businesses work in this way. Due to poor
  management organizations work in the red for
  years until this results in an inevitable closure
  of the business.
• One of the most difficult businesses to keep
  afloat are restaurants due to the volatility of
  inventories and sales. Therefore, it is necessary
  to be strict in taking measures to guarantee
  success.

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Reducing Restaurant Food Costs

• We want to clarify that every experience is
  different. However, we are sure that with these
  measures you will be able to have better control
  of your business and what happens with it, so not
  everything will be managed by the inertia of the
  economy of the country where you are.
• Without further ado, here are some tips that will
  help you reduce and boost your restaurant

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? Calculate your food cost

• Although it can be a tedious and time-consuming
  task, the best way to plan optimally is to do a
  cost estimate. This will help you save money,
  time and food, since one of the most common
  characteristics in restaurants is to have losses
  due to excess products. Therefore optimal
  planning according to the sales projection for
  that time of the year will make you order the
  right amount of food from your suppliers.

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? Keep track of your inventory on an ongoing
basis

• Inventory plays a key role in any business.
  Keeping a strict inventory of incoming and
  outgoing food and other restaurant goods will
  allow you to have an overview of the economic
  activity of the business. It will also let you
  know when you should order more supplies and when
  you should not. This is a smart way to stock up
  since everything will depend on your product
  shipment. Thanks to technology, there are
  automated ways to keep your inventory. This is a
  big plus because you only have to worry about the
  inputs and outputs. If your business is small and
  does not warrant a large investment in an
  inventory system you can do it manually. The
  results will be the same as long as your controls
  are continuous and organized.

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? Find the supplier that best fits your budget

• We usually wait for the suppliers to come to our
  restaurants, and we are not the ones who go to
  the suppliers. This makes a big difference
  between successful restaurants and those that are
  not. The supplier that can offer lower prices and
  good quality should be the one chosen. Here lies
  one of the biggest secrets to reducing costs in
  any business.

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? Implements portion control

• Although it seems an obvious measure, not all
  restaurants implement it. A large percentage of
  businesses do not have ounce measurements of how
  much of each food item is being served. When this
  is the case, there is a notorious waste of food
  that must be constantly replenished, which
  translates into losses. It is always advisable to
  have clear measurements of the portions that will
  be put on each plate.

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? Make a price calculation per plate

• One of the smartest ways to have honest and
  competitive prices in your restaurant menu is to
  make an individual calculation for each dish you
  offer. This will allow you not only to have
  better control of the resources but also to save
  in terms of the quantities you use. Control is
  the key to success. The more organized your
  business is, the better performance and results
  will provide.

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? Use the FIFO method

• The first-in, first-out method is one of the most
  widely known and implemented worldwide. It is
  about making use of the oldest products in the
  inventory. The methodological use of this method
  is simple, so inventories should not be mixed.
  One of the most effective ways to know which one
  is in use is to identify the inventories by lot.

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? Train your staff

• Trained staff translates into successful work and
  better use of resources. Although this may mean
  an initial investment, it is best to give each
  employee as much training as possible in his or
  her area of work, as this will translate over
  time into efficiency and quality.

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? Limit the number of dishes on your menu

• Although we all love a wide and diverse menu of
  dishes, the truth is that it is not profitable
  for all restaurants to offer so many varieties. A
  good manager will be able to detect which dishes
  are customer favorites and which ones sell
  poorly. This will allow a greater availability of
  inventory for other dishes, and at the same time,
  it will stop counting on ingredients that are
  unnecessary and unprofitable.

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? Keep an eye on overstaffing

• One of the main money leaks is the excess of
  workers. Deyernine how many employees are needed
  to perform a given task efficiently. Depending on
  the size of your location, it will be better to
  keep a high number of employees or not.
  Constantly evaluate this point.

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? Make reasonable use of the services

• Making efficient use of basic services such as
  electricity, water and gas will also allow you to
  obtain small savings that over time you can
  transform into bonuses for your employees.
  Impress the culture of efficient use of resources
  in your work team.

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Reducing Restaurant Food Costs

• With the methods explained above, you will be
  able to create a better economy for your
  restaurant. Keep in mind that every business is
  different, and some variables come into
  consideration. Such as region, country, and time
  of year that can make the decisions to be made
  vary. However, these methods mean a better
  organization that will bring efficiency and
  results in the medium term.
• Likewise, the help of professionals specialized
  in the field can also help you to have a broader
  vision of these methods. Investing in your
  business is investing in you, do it now. Make
  your restaurant profitable.