Factors Affecting Inventory Control
With today’s food costs running as high as 33% of gross sales in some markets, there is no margin for error when it comes to managing costs. An effective cost-control program must be multifaceted in order to close all of the profit-draining holes that exist both in the front and the back of the house. Any comprehensive cost control system must take into account several factors, including inventory and portion control, just-in-time ordering to avoid spoilage, vendor price comparison, accurate receiving procedures, waste, prep and pull procedures, compensation, and coupons control.
Of course, quantitative techniques, or “number crunching”, is a basic step in the process of reining in food costs and keeping them under control. The ability to create a budget and track all expenses against that budget provides an accurate snapshot of actual food costs and other overhead, but it does little to identify all of the factors that contribute directly or indirectly to those expenses. Likewise, knowing your average ticket and table turnover statistics provides a good foundation for sales and revenue forecasting. Use a budget in conjunction with measurements and ratios for an accurate idea of how to improve your restaurant’s profits.
Labor costs could be as much as 30% of your expenses; TimeForge can help streamline and minimize labor costs through effective employee scheduling.