Bringing MORE To The Table


 Restaurant
 Management 101
                 {managing cost & people}




5 Ways To Make Your        How To Grow Your Business
Restaurant MORE Profitable      Without Going Broke!


No Training Budget?                      Keep It Simple
Spend Nothing But Time       Anthony’s Pizza Philosophy




                  800.447.4941
About This Issue
                                                    TUNDRA’S CUSTOMERS ARE
                                                     GOOD BUSINESS PEOPLE.
       The universal law “survival of the fittest” indicates this is true because the restaurant business is

       so competitive and fast-moving. This was a tough business before the economic trials of the

       past two years. That’s why I continue to be amazed by the brilliance and determination of the

       food service professionals we have the pleasure of doing business with every day.



       As any good business person knows, controlling costs is almost as important as growing revenue.

       Keeping overhead low has been an important value to Tundra since the beginning because

       it allows us to share more of our gains with our customers, our people, and our community. For

       our customers, keeping overhead low can mean the difference between sinking or swimming.



       Tundra has always tried to help in the expense department by focusing on value. Additionally,

       we carry many products that help you manage costs, like portion scales, walk-in strip curtains,

       and fryer oil filter systems. Food service is a tough business, and anything that helps your restau-

       rant gain an edge can be worth its weight in gold.



       In this edition of The Front Burner you’ll find more deals on all the products you need to run your

       restaurant. That said, we realize there are many aspects of managing your business that go

       beyond the equipment, supplies, and parts that are our specialty. That’s why you’ll also find

       articles dealing with important overhead issues like inventory control and labor management.



       Effective management requires a lot of knowledge about many things. Tundra knows how edu-

       cated our customers are because we see how successful they are even in tough times. We’re

       proud to have the opportunity to provide some of the tools and a bit of the knowledge that

       contribute to your success. And we enjoy watching professionals like you in action.




       Michael Lewis
       Tundra Founder
5 Ways to Make
                                                                        Your Restaurant
MORE Profitable
1. Reduce Food Costs With A
	 Descending Dollar Report
A Descending Dollar Report is a fancy way of saying
“Find the 10 food items you spend the most money
on every month.” Once you know what those 10
items are, start looking for ways to cut your costs on
each one.
Talk to your distributors and see if you can find a simi-
lar or even better product that’s less expensive. Also


                                                                                                                   TOP 5
don’t be afraid to pursue other distributors to find
ones that are willing to bring you quality product at
a better price.
If you have the capacity to store items in bulk, do so
                                                                                            1.     Reduce Food Costs
at every opportunity. If you don’t, seriously consider                                      2.     Leverage Technology
investing in bulk storage so you can take advantage
of available discounts.
                                                                                            3.     Learn from “Regulars”
                                                            More than likely your res-
Employ a detailed inventory system so you can make          taurant already uses a POS
                                                                                            4.         Promote Your Menu
as many bulk purchases as possible while avoiding           system to manage inventory      5.         Diversify You Revenue
spoilage. No matter what, use your buying power to          and sales. However, it’s also
find the best deal possible. More than likely, food is      likely that you are not get-
one of your business’ biggest expenses, and saving          ting the most out of that technology. Most vendors have training guides de-
even a few cents per pound you buy can translate            signed to educate you on system features, so take the time and become an
into significant savings.                                   expert. Utilize your POS vendor’s website and customer support to get new
2. Leverage Technology                                      updates for your POS system. Often vendors will also provide free training and
   to Minimize Waste and                                    tips for their software that will help you get the most out of your investment.
   Mistakes                                                 Also don’t skimp on the hardware that goes with a POS system. Of course,
POS (Point of Sale) and inventory software have be-         a lot depends on the size of your business, but in general, buying one touch
come powerful management tools for your business            screen terminal for your whole wait staff doesn’t increase their efficiency
in recent years. With a POS system, you can:                since they stand around waiting to enter orders.

	   • Track inventory and set reordering schedules          If you’re about to buy a new POS system, shop around. There are a multitude
                                                            of vendors out there, and many specialize in different segments of the food
	   • Manage employee hours and manage
                                                            service industry, like quick service, pizza, small independent, etc. Make sure
	     payroll
                                                            the vendor you choose offers a free downloadable trial version of their soft-
	   • Track sales and identify trends, like best            ware so you can check out the interface before you buy. Also look for ven-
	     selling items, high margin items, and
                                                            dors that offer updates and good customer support for their software.
	     underperformers
                                                            3. Learn From “Regulars” and
	   • Reduce waste from spoilage and ordering
                                                               Incentivize Them To Come Back
	     mistakes
                                                            Perhaps your best resource for improving operations in your restaurant are
	   • Eliminate unauthorized complimentary
                                                            your regular customers. You have spent a lot of time building loyalty with this
	     meals
                                                            group and they have spent a lot of money patronizing your business. So take
	   • Increase table turnover rates                         the time to survey and incentivize your regular crowd.
	   • Increase staff efficiency                             Building an effective customer loyalty program is the best way to achieve
                                                            this.
Airlines have been using loyalty programs        For one thing, these items are already a best seller, so why promote them? Another
for years, but the food service industry has     consideration, and a much more important factor, is that there are probably other
only recently gotten into the game. Some         items on your menu that have a much higher profit margin and aren’t selling.
effective ways to implement a loyalty pro-       A high profit margin menu item is one where a high percentage of the price of the
gram:                                            item is net profit. These items are often made from inexpensive seasonal ingredients
• A loyalty card that gives rewards for          combined with easy prep methods.
  frequent visits (such as eat ten               Utilize multiple marketing strategies to promote high margin menu items. On menus,
  meals get one free)                            highlight them with a box or other attention grabbing graphic. Use email marketing
• A regular-only e-newsletter                    for promotion, especially if they are a seasonal item. And train servers to sell high mar-
  with special promos, prizes,                   gin items whenever possible.
  and giveaways in exchange                      Every restaurant has bread and butter best sellers that form their reputation. But often
  for surveys and feedback                       the secret to higher profits lies in the high margin sleepers. Properly promoted, these
• Bring-a-friend campaigns                       menu items can provide a real boost to your bottom line. Don’t be afraid to experi-
  that give away a free meal                     ment with different high margin items until you find a winning lineup that can be regu-
  to a regular who brings a                      larly rotated in and out of your menu for a year-round bump in profits.
  friend to eat who has never                    5. Diversify Your Revenue Stream
  patronized your restaurant
  before.                                        Running a successful, profitable restaurant is just like being a stock broker: you must di-
                                                 versify to minimize risk. This lesson is even more relevant today considering the current
• Special buy-in clubs that                      economic climate. So, you have a great concept, some popular menu items, and a
  target specific segments of                    decent dinner rush. Good. But your profit margins could be better, and your business
  your customer base. For                        more resilient, if you took the time to diversify.
  example, Hard Rock Café
  has a Pin Club for fans of the                 Some ideas:
  special collectible pins sold at               Add retail items. Loyal customers love creative apparel
  the chain’s locations                          referring to your restaurant. Think of all the money the
                                                 Hard Rock Café has made just from selling T-shirts and
Focus on promoting your brand when im-
                                                 hats alone. Plus you’ll get some great free advertis-
plementing a customer loyalty program,
                                                 ing for your business.
and be willing to commit the necessary re-
sources to fund an ongoing program. The          Make your food more accessible. Customers love your
cost can eat up a large part of your mar-        menu, but they may not have the time or the inclination to
keting budget, but the reward in brand           sit in your dining room and eat. Consider carry-out for popular
recognition, customer loyalty, and regular       items, large party catering services, and even food delivery to
feedback and customer information are            make sure your customer can have your food whenever they
vital to creating a stable base for your busi-   want.
ness.                                            Host special events. Weddings, corporate functions, and large
4. Promote the Most                              parties often require specialized menus and pricing, but mak-
	 Profitable Items                               ing your restaurant available for larger functions is a great way to sell out the place on
	 on Your Menu                                   slow days and to take advantage of high seasons, like corporate Christmas parties.
                                                 Plus many of the guests at a large event have probably never been to your restaurant
When it comes to analyz-
                                                 before, so impress them so much they come back for more.
ing which items to pro-
mote on your menu,                               Create profitable partnerships. Chances are there are several other local businesses
it’s important to                                that would like to reach your customer base. Come up with creative ways to give
recognize       two                                 such partners advertising access to your customers…for a fee. This could include
main catego-                                        advertising in menu inserts, banner ads on the emails you send out, or product
ries: best sell-                                   giveaways at promotional events in your restaurant. Of course, there is a fine line
ers and best                                        here between annoying and pleasing your customer, but use constant feedback
money makers.                                       and modify your strategies until you get the formula just right. The result will be a
That’s because the                               great revenue stream that is almost all profit.
best selling items on your
menu, while important,
may not be the ones you
                                                                   Learn More Ways to Help your Profitablity
want to spend the time
and money promoting.
                                                                          http://blog.etundra.com
No Training Budget?
      Spend nothing but TIME &
New employees get some pretty good training for the first 90 days
                                                                                        SUCCEED!
after hire. After that, wait and kitchen staff receive very little or no   Okay, you say, I get it, employee training is im-
training, while management tends to receive more. No matter                portant. But I can’t afford it right now, so what
the size of your restaurant, ongoing training should be a corner-          should I do? Well, as long as you are willing to
stone of your overall strategy. Research shows that employees              take the time, staff training doesn’t necessarily
who are given regular career training and whose company phi-               have to cost a lot of money. Sure, supplemental
losophy revolves around a reputation for service are much more             training materials and videos are more efficient,
likely to stay longer and perform better, which attacks the biggest        but when you need to cut back, training materi-
monster in restaurant labor: high employee turnover.                       als aren’t a necessity.

 Some ideas for training on the cheap:
    ROLE PLAY WITH EMPLOYEES.                        START A MENTORING PROGRAM.                      CROSS TRAIN EMPLOYEES. Train
Don’t take it the wrong way (and at least         Assign your top servers and kitchen staff to   servers how to be hosts, hosts how to be
one person on your staff is going to snicker      one new employee each. Have the new            servers, line cooks how to expo, etc. The
in the back every time you bring this up)         employee do nothing more than follow           benefits of cross training are twofold: your
but role playing customer service situations      the more experienced members of your           staff will be able to fill gaps on busy nights
with your employees is a very effective           staff around for a shift a month. Not only     or when you have no-shows, and they will
way to train. If you hold regular role play-      will the new employees learn by example,       better understand how the restaurant op-
ing sessions, the awkwardness will eventu-        they will form relationships with your best    erates as a whole, which usually means
ally wear off and very positive employee          employees, which encourages retention          they will work better as a team.
interactions will develop.                        and improves performance.

                             Simple, effective training techniques usually translate into one simple principle:
                   Take time out and spend it with your employees.
                               It can posiiton you to succeed no matter what the economic climate is like.



                                                                                                               Let’s face it: a pizza & pub
                                                                                                               joint isn’t the most original
                                                                                                              concept out there.
                                                                                                            The difference between
                                                                                                           Nick’s and the next pizza place

Why Nick’s {ISN’T}
                                                                                                         are the intangibles his customer
                                                                                                       perceives as added value.


		 JUST ANOTHER PIZZA JOINT
Nick Sarillo is a restaurateur with blue col-    Reward employee development. Nick’s             Encourage feedback – and actually listen
lar roots based in the Chicago area. Sa-         has additional training that is completely      to it. Nick’s has a designated area for em-
rillo’s Nick’s Pizza & Pub is a great example    voluntary. Those who choose to take the         ployees to give feedback. They can call
of how the labor environment in food ser-        extra training courses are rewarded with        the management, all the way up to Nick
vice is changing. Progressive restaurants        automatic raises once certain levels are        himself, into this “safe” area. In turn, man-
are starting to place a high value on em-        completed.                                      agement listens carefully and takes a pro-
ployee retention in an industry that has                                                         active attitude toward resolving the issues
                                                 Spread responsibility around. In most busi-
traditionally had extremely high turnover.                                                       that are brought up.
                                                 nesses responsibility lies on managers.
Those that do invest in their employees en-      Nick’s approach is to create checklists in      Creating a culture that reduces turnover
joy a level of customer service that helps       different areas of the restaurant for which     and encourages excellence in service is
them stand out from the competition.             all employees are responsible. Once it is       the way to make your restaurant stand out
   What are some of his secrets?                 completed, it is checked and crossed off        from the competition. If your staff wants to
                                                 by the manager. Spreading the responsi-         come into work every day, then you’ve
Take the time to hire right. The interview
                                                 bility around means staff can accomplish        found a formula that will help your restau-
process at Nick’s involves at least two sep-
                                                 tasks more efficiently. They can set their      rant succeed where others fail.
arate interviews.
                                                 own goals for getting things done.
Why Buying Scales Will
                                  Save You MONEY!
It’s not headline news                           to anyone in the food service industry
that inventory control is very important in any restaurant. That’s why it’s surprising just
how few restaurants view the use of scales as a way to manage shrinkage and really
control how food product is used. In fact, scales should be the central tool in any res-
taurant manager’s quest to make sure everything that comes in the restaurant goes
out as a finished product a customer is paying for.
The best place to start is with a receiving scale. As product rolls in the back door off
the truck, weigh each bulk item and record the weight. That way you know exactly
how much of each kind of ingredient you have available. This helps you in two ways:
1. You’ll know exactly when it’s time to order more product
2. If you’re out of product, but you only sold X number of entrees that use that
product (i.e. not enough of them to be out), inventory shrink is happening, and it’s
time to find the reason.
Portion scales are a necessary compliment to your receiving scale. After all, if you’re
measuring what’s coming in but not what’s going out, you’ll have a hard time man-
aging your inventory. There are two kinds of portion scales: mechanical scales and
digital scales.



      Scales = Accuracy.
      		 Accuracy = Less waste.
      	 Less waste = $$ SAVED!
      	        Less cost = MORE profit.
Mechanical portion scales indicate              and measure additional weight from zero. In other words, the mixing bowl you put on
weights on a large, easy-to-read dial.          the scale will weigh zero once you press the tare button and the scale will only register
These scales are ideal for measuring bulky      the weight of the ingredients you add to it.
items that you’re cooking in large quan-        You can measure ingredient proportions on a digital scale easily and much more ac-
tities, like french fries or chicken wings.     curately than with measuring cups because different ingredients compact differently in
You’ll sacrifice a little bit of accuracy for   a measuring cup. Flour is the best example. A cup of flour can weigh between 4 and 6
speed and convenience, which makes              ounces, depending on how compacted it is in the cup. If you extrapolate that out to 4
sense if quantity is more important.            cups of flour, you’ve got up to a 50% difference in the weight of the flour.
Digital portion scales are much more ac-        You can also calculate proportions more easily with a portion scale because you know
curate and allow you to measure ingre-          how much ingredients that are hard to measure with a cup weigh, like eggs. A recipe
dients with precision. Use these scales         for pasta might call for three parts flour to two parts egg. If two eggs weigh four ounces,
for measuring out the ingredients to your       then you know you need six ounces of flour.
restaurant’s world famous secret sauce,
anything that needs to be baked, and            Finally, scales can help you manage another extremely important inventory item in
other multi-ingredient recipes. The nice        your restaurant: alcohol. Use a liquor scale to measure the remaining amount of alcohol
thing about digital scales is that you can      in each bottle at the end of the day and record the amount. You depend on alcohol
reset the tare and calculate ingredient         sales to contribute to your bottom line entirely too much for an inaccurate evaluation
proportions very easily.                        of inventory. A liquor scale takes the guesswork out of the equation and allows you to
                                                compare hard numbers with your sales so that you can spot shrinkage and put a stop
For those of you who don’t know, the tare       to it quickly.
on a scale is a feature that tells the scale
                                                                               FOR MORE MONEY SAVING TIPS
to ignore the current weight on the scale
                                                                    Visit our Resource Center at http://rc.etundra.com
How to grow business
                                              {without going broke}
                                               Growing a business is never easy, and trying to grow that business in the
                                               current economic climate is even harder, which is why a few key prin-
                                               ciples for small business ring more true today than ever:

                                               {Maintain your focus}
                                               Someone is always going to be trying to sell you something or help you out with another
                                               thing. Buying their product or partnering with their firm is your key to success. More busi-
                                               nesses have failed because they invested in things that didn’t help their bottom line
                                               than just about any other reason. You must maintain a laser-like focus on what your
                                               restaurant really needs and what might be nice, but isn’t absolutely vital to day-to-day
                                               operations.

{Don’t forget who you are}
Small independents do well because they have a local appeal
and feel like they’re part of the community. A common mistake
as a small restaurant tries to grow is to start trying to appeal to
larger audiences by expanding menus, changing décor, and
moving into larger locations. It may seem counterintuitive at
first, but a crowded little local place with a hole-in-the-wall feel
is much more attractive, and in the end more profitable, than
a little-known name that just moved into a large, mostly empty
space. You’ve been successful up to this point precisely because
you are a small independent restaurant, not in spite of it.
                                                                       insurance companies, and anyone else who provides you a ser-
{Be a tightwad}                                                        vice. Controlling overhead is the key to success, and if you lay the
                                                                       groundwork now, it is going to translate into better profits down
Another trap small businesses fall into, especially successful ones,
                                                                       the line.
is to start splurging on products and services. If you’re lucky
enough to be making money, count your blessings and then               {Sell the &*!# out of your product}
continue to be a miser with the bank account. If you do spend
                                                                       In the end, restaurants are about making a product (your deli-
money on something for your business, make sure it complies with
                                                                       cious entrees) and selling them to customers. The first four tips in
Rule #1 above. You’ve gotten this far with a lot of hard work and
                                                                       this list are all about making production as efficient and as af-
a lot of doing things yourself. Don’t let those good habits go by
                                                                       fordable for you as possible. Unfortunately, none of that matters if
the wayside just yet. Keep your nose to the grindstone and keep
                                                                       you’re not selling meals. Make getting as many customers in the
building up the treasury.
                                                                       door who also leave happy the top priority of your business. Re-
{Be a cutthroat shopper}                                               ally, this should be first on the list, not last. Don’t let focusing on the
                                                                       other tips cause customer service and sales to fall by the wayside!
Relentlessly search for discounts on everything you buy. Search
out rebates from credit card companies, utilities companies,           {Success for your restaurant boils
                                                                       down to this: if more money is com-
                                                                       ing in the door than going out,
                                                                       you’ll live to fight another day}
                                                                       Ironically, most small business owners find that controlling the
                                                                       amount of money going out is a lot harder than growing the
                                                                       amount of money coming in. That’s why four out of five tips on
                                                                       this list deal with overhead and expenses. Striking the right bal-
                                                                       ance between growing sales and controlling costs is the key to
                                                                       growth in your restaurant.
Factors for Calculating TOTAL
                  Cost of Ownership
                         There’s always a significant amount of cost involved
                         whenever you buy a new piece of restaurant equipment.

Those costs only continue as that equipment
ages in your restaurant – from energy use to
repairs, the consequences of new equipment
will be around for a long time after you’ve
written the check to purchase.
By and large, most independent operators
do not undertake the complicated task of
calculating total cost – usually because the
information or the know-how necessary to
make an accurate calculation isn’t avail-
able. That’s unfortunate, because a single
faulty or inefficient piece of equipment can
mean thousands of dollars in extra expenses
for a restaurant over the lifespan of the piece.

           Here’s a quick guide to help you get started on your
      own cost analysis before you buy your next piece of equipment:
CAPACITY. The larger the piece of              ENERGY EFFICIENCY. Often more efficient units have a higher purchase price be-
equipment, the more volume it can han- cause more efficient components are also more expensive. However, paying 10% – 20%
dle. The trade-off here is that larger equip- more for a unit that’s 30% more efficient means you’ll still be saving thousands of dollars
ment also uses more energy. That’s fine over the entire lifespan of the unit.
if you’re using that                                                  It’s common practice in the food service industry to shop aggres-
capacity to generate        Cost of Ownership                         sively for the lowest price point. While there’s absolutely nothing
revenue, but one of                                                   wrong with bargain hunting, an unintended consequence of this
the biggest traps small-    Considerations                            is that many new units use old component technology that keeps
er operations fall into is                                            the price low even though those components are much less ef-
                             • Determine capacity
buying too much ca-                                                   ficient. Sometimes, spending a little more up front can actually
                             	 including growing your
pacity or not enough                                                  save you a lot of money down the road.
                             	 business over the next
capacity.
                            	 10 years.
In general, you want                                                SERVICE & PARTS AVAILABILITY. Every food service
to size new equip-       • Energy Efficiency could                  operator loathes equipment downtime. If your equipment isn’t
ment capacity based      	 save you 10-20% in the                   working, you’re losing money. Do some research on the avail-
upon your best esti-     	 long run.                                ability of equipment services and parts in your area before you
mate of growth over                                                 buy. Also, get an idea of how easy it is to make do-it-yourself
                         • Availability of
the course of the unit’s                                            repairs on a unit that will save an expensive service call.
                         	 do-it-yourself parts
life. A good piece of
restaurant equipment     • Ease of Use.                             EASE OF USE. Energy efficiency is important, but so is labor
should last about 10
                                                                    efficiency. A piece of equipment that’s difficult or dangerous to
years. That means you
                                           operate means more training and a higher incidence of work-related injuries. In a high
need to buy more capacity initially to ac-
                                           turnover industry like food service, equipment that requires a lot of training to operate
commodate future growth. You’ll have
                                           doesn’t make any sense. Easy-to-use equipment that promotes employee efficiency is
more energy expenses at first as you ramp
                                           an important factor.
up to full capacity, but down the road,
one piece of equipment is more efficient In many cases, the initial price tag has little to do with how much equipment will actually
than two.                                  cost you over its entire lifespan. The purpose of a total cost analysis is to help you make
                                           a more informed decision before you make the investment.
Why An Oil Filtration System Will
                 SAVE you MONEY.
                   $         MAINTAINING HIGH QUALITY FRYER OIL IS KEY TO ENSURING YOUR
                                  CUSTOMER GETS A GREAT TASTING PRODUCT EVERY TIME.

                    If your restaurant uses fryers with any regular-
                    ity then you already know how important it is to
                    change fryer oil regularly and to keep the vat on
                                                                              A fryer oil filtration system removes food bits, which
                                                                              become carbonized if left in the oil and cause it to
                                                                              break down more quickly. Filtering also removes
                    your commercial fryers clean. Changing fryer oil          the harmful byproducts created when heated oil
                    is a necessary expense in your operating budget,          breaks down during the cooking process. Both of
                    but that doesn’t mean it has to be a large one. If        these elements reduce the effective life of fryer
                    you take the time to filter cooking oil once each         cooking oil and negatively affect taste and per-
                    day with a simple filtration system, you’ll improve       formance.
                    its lifespan and quality significantly.                   The simple process of filtering fryer oil once each
                    How does an oil filter system work? Simply drain          day means you don’t have to change cooking oil
                    the oil from the fryer vat into the filter basin. Once    as often, and that means you spend less buying
                    all the oil is drained, replace the plug in the fryer     new oil. Investing in a fryer oil filtration machine
                    and use either the hand crank or electric pump            can reduce fryer oil expenses by 25% - 40%. That
                    to push the fryer oil through a filter and up a hose      means an oil filtration system will pay for itself very
                    back into the fryer vat.                                  quickly.




5 Strategies For BETTER                                                                       The cost of refrigeration can be a
                                                                                                hefty one for any restaurant.
Refrigeration Efficiency
Unfortunately, refrigeration is a necessary expense so that you can keep your inventory
fresh and ready to serve. Luckily, there are some simple strategies you can employ to                                         1
help maximize the efficiency of your restaurant’s refrigeration systems and therefore
keep costs to a minimum.                                                                                   2
Here are the main areas you should focus on:
 1   Clean those coils! The con-                   4    Turn off door heaters. If you
denser and evaporator coils take the heat          have a problem with frost buildup or have
inside your refrigerator and disperse it out-      water pooling in front of the unit, then you
side the unit, and if air can’t pass over the      must have the door heater on. Otherwise,
coils, then they radiate heat much more            turn it off to save energy.
slowly. That makes your unit consume more
                                                                                                                          3
electricity.                                       5 Be sure the door latch is
                                                   working properly. A worn or bro-                                            4
 2 Replace worn or torn door                       ken latch means the door gasket isn’t fully
gaskets. The door gasket forms a seal              sealed, and you’re losing cold air. Also use a
when the unit’s door is closed, preventing         door closer to automatically pull the walk-in                         5
cold air from seeping out.                         door shut quickly after it’s opened.

 3 Use a curtain in your                                For all your refrigeration needs
walk-in. Strip curtains drastically reduce                      visit etundra.com
the loss of cold air when the door to your
                                                             When buying a new unit, Energy Star rated models are a smart choice.
walk-in is open, and when it’s closed, the
                                                             If you can’t find an Energy Star unit that works for you, upgrading to a new
curtain adds an extra layer of insulation.
                                                             unit will mean better efficiency simply because it’s newer.
Managing Rising Food Costs

A    s anyone who shops in the grocery
     store knows, the cost of food has
     been steadily rising for a few years
     now. The recent economic downturn
     has slowed that trend somewhat, but
     the reality is that everyone in the food
     service industry is dealing with rising
     food costs, and they will be for the
     foreseeable future.
     So what should you do to manage
     these rising food costs in a time when
     customers expect high quality and
     low prices when they go out to eat?


             HERE ARE SOME STRATEGIES TO HELP YOU COPE:
Leverage your buying power.                                                                 Be sure to take
Your restaurant goes through a lot of food and ingredients. And every month a large         advantage of seasonal
chunk of your budget goes to suppliers who keep your walk-ins stocked. That chunk of        deals.
money is the core expense in your business, and the most important one besides payroll.     Many ingredients can be purchased in bulk
The upside to this is because you spend so much with food suppliers, that makes you an      during seasonal peaks in production at a
important customer to them, and important customers should be able to get deals and         discount. Once you buy a seasonal prod-
other perks from their suppliers.                                                           uct in bulk, get creative with different ways
                                                                                            to work it into your menu. No matter what,
The best place to start is to consolidate your food suppliers whenever possible. The more
                                                                                            your menu should never be a sacred cow.
you spend each month with a single company, the more leverage you will have in
                                                                                            Constant tweaking and experimenting is
negotiating discounts. If you can get a comparable product from a single company
                                                                                            vital to helping you find the perfect com-
without sacrificing quality, then by all means go with as few suppliers as possible.
                                                                                            bination.
Next, buy products in bulk whenever possible. Hopefully you have already invested in
adequate walk-in freezer space. Buying core products and ingredients in bulk gives you
access to deeper discounts, but this is only possible with plenty of walk-in space. Even if
                                                                                            Finally, Manage
you are short on storage space, seriously consider investing as soon as possible. Over the
                                                                                            portions.
long term this investment will pay off handsomely in savings when you buy bulk product. Every recipe calls for specific amounts of
                                                                                            multiple ingredients. In a bustling kitchen,
                                                                                            those portion amounts often get more and
Work over your menu.                                                                        more generous. This is costing you money.
As food prices for some products rise, others fall or stay the same. At the same time,
                                                                                            Take the time to train kitchen staff on cor-
some items on your menu sell well while others decline. Constant evaluation will reveal
                                                                                            rect portions and enable them to take the
which menu items are making you money and which are not. Of course, you will always
                                                                                            time to measure portions correctly every
have core items that define your restaurant, but many fringe items can be changed
                                                                                            time. A portion scale is also a vital piece
and chopped as needed until you find a combination that works.
                                                                                            of equipment to help you control portions.
The cost to produce a menu item should be a major factor in this decision. High dol- Taking the time to train and enforce qual-
lar entrees may bolster your servers’ check averages, but if the margin in that entrée ity control on portioning can translate into
is small because of expensive ingredients, then you’re not doing yourself much good. significant savings over time.
It may make sense to focus on less expensive items (especially when customers are
                                                                                            In fact, all of these strategies have a cumu-
looking for values!) that have a higher profit margin for you. Alternatively, you can take
                                                                                            lative effect, and if implemented properly,
existing menu items and interchange ingredients that don’t compromise quality but do
                                                                                            can really benefit your restaurant's bottom
make the entrée more affordable for you and your customer.
                                                                                            line over time.
How {Low Flow}Can IMPROVE Your




                                                                                                                                           {Cash Flow}
                               Your restaurant uses a lot of water. You don’t need to be told how much that water costs
                               you - you’re reminded every time you look at your monthly utilities bill. Even a small adjust-
                               ment in daily water usage can make a huge difference in how much money you spend,
                               and sometimes those adjustments can be astoundingly easy.
                               Take, for example, the spray valve on your pre-rinse assembly. You want a strong flow of
                               water so that dishes can be quickly rinsed before they go into the dishwasher. The problem
                               with a strong flow is that a lot of water gets used very quickly, and that costs money.
                               Low flow spray valves have become popular because they use a fraction of the water per


                              minute as an older spray valve. Over the course of a year, a low flow spray valve can save
                            you thousands of gallons in water usage and therefore hundreds of dollars on utilities.
                     But will a low flow spray valve clean dishes? It took a company with a reputation like T&S to engineer
                a low flow spray valve that didn’t sacrifice any of the performance anyone would expect out of their pre-
rinse. Their new low flow spray valves clean dishes just as quickly or even faster than any other manufacturer but they use
half the water. That means as much as 100,000 gallons of water savings a year.




       “keep it simple”
        If there is one thing that
        sums up the success An-
        thony’s Pizza has had over
        the past 26 years, “keep it
        simple” is it.
        It all started in 1984 with one location near
        Denver’s 16th Street Mall and some quality
        New York style pizza by the slice. Anthony’s
        has since expanded to 28 locations along
        Colorado’s Front Range – a purposefully
        slow pace that ensures each pizzeria lives       In the beginning, Anthony’s, like most         tant.
        up to the high standards set by the original.    other restaurants, was at the mercy of         Anthony’s has worked out equipment
        That’s because keeping it simple doesn’t         the price fluctuations of food distributors.   and supplies packages with Tundra’s store
        mean Anthony’s skimps on the details.            When you buy as much cheese as Antho-          opening team, allowing new franchises to
        Each ingredient, including the dough, is         ny’s does in a year, even small variations     get everything they need in stages, com-
        prepared the old-fashioned way: fresh            can mean big money. So they started            plete with an itemized checklist. “You can
        each day right there behind the counter.         their own distribution company called          price check every spatula and ladle, or
        And every pizza is cooked in a stone oven        LMT Group, Inc. Now he uses the buying         you can focus on what’s really important
        instead of an industrial conveyor oven. It’s     power he’s accumulated as a distributor        – getting your restaurant open for busi-
        a simple combination that makes for some         to pass savings along to the individually      ness,” says Le Bel. “Running around trying
        outstanding pizza, and their classic over-       owned and operated franchises bearing          to save five cents isn’t going to get you
        sized thin crust slices are definitely a local   Anthony’s name.                                anywhere.”
        favorite.                                        “I worked hard at understanding the            In a crowded fast casual market, serving
        Anthony’s Vice President John Le Bel takes       food business and food costs,” he says.        one of America’s most popular dishes, An-
        the same practical, down-                        “You’ve got to watch that stuff like a         thony’s has excelled by sticking to what’s
                                                                      hawk.”
        to-earth approach he uses      “When it comes to                                                most important: giving the customer the
        to make pizza and applies                               Helping new owners gives                best possible experience. With a lot of
                                           maximizing
        it to the other aspects of                              the franchisor the chance               business savvy and a simple approach,
        the business. “It’s easy to    efficiency, you’ve to impart more cost-saving                    Anthony’s has made New York style pizza
        be penny-wise and pound        got to consolidate wisdom on Anthony’s grow-                     in Colorado their own, and that makes
        foolish in the food service     buying power.”          ing family of restaurants.                      In the Denver Area?
        business,” he says. “When                               Those hectic days leading                 Find an Anthony’s Pizza near you!
        it comes to maximizing efficiency, you’ve up to a new location opening is where
                                                                                                                ILoveAnthonys.com
        got to consolidate buying power.”          keeping it simple is particularly impor-

Restaurant Management 101

  • 1.
    Bringing MORE ToThe Table Restaurant Management 101 {managing cost & people} 5 Ways To Make Your How To Grow Your Business Restaurant MORE Profitable Without Going Broke! No Training Budget? Keep It Simple Spend Nothing But Time Anthony’s Pizza Philosophy 800.447.4941
  • 2.
    About This Issue TUNDRA’S CUSTOMERS ARE GOOD BUSINESS PEOPLE. The universal law “survival of the fittest” indicates this is true because the restaurant business is so competitive and fast-moving. This was a tough business before the economic trials of the past two years. That’s why I continue to be amazed by the brilliance and determination of the food service professionals we have the pleasure of doing business with every day. As any good business person knows, controlling costs is almost as important as growing revenue. Keeping overhead low has been an important value to Tundra since the beginning because it allows us to share more of our gains with our customers, our people, and our community. For our customers, keeping overhead low can mean the difference between sinking or swimming. Tundra has always tried to help in the expense department by focusing on value. Additionally, we carry many products that help you manage costs, like portion scales, walk-in strip curtains, and fryer oil filter systems. Food service is a tough business, and anything that helps your restau- rant gain an edge can be worth its weight in gold. In this edition of The Front Burner you’ll find more deals on all the products you need to run your restaurant. That said, we realize there are many aspects of managing your business that go beyond the equipment, supplies, and parts that are our specialty. That’s why you’ll also find articles dealing with important overhead issues like inventory control and labor management. Effective management requires a lot of knowledge about many things. Tundra knows how edu- cated our customers are because we see how successful they are even in tough times. We’re proud to have the opportunity to provide some of the tools and a bit of the knowledge that contribute to your success. And we enjoy watching professionals like you in action. Michael Lewis Tundra Founder
  • 3.
    5 Ways toMake Your Restaurant MORE Profitable 1. Reduce Food Costs With A Descending Dollar Report A Descending Dollar Report is a fancy way of saying “Find the 10 food items you spend the most money on every month.” Once you know what those 10 items are, start looking for ways to cut your costs on each one. Talk to your distributors and see if you can find a simi- lar or even better product that’s less expensive. Also TOP 5 don’t be afraid to pursue other distributors to find ones that are willing to bring you quality product at a better price. If you have the capacity to store items in bulk, do so 1. Reduce Food Costs at every opportunity. If you don’t, seriously consider 2. Leverage Technology investing in bulk storage so you can take advantage of available discounts. 3. Learn from “Regulars” More than likely your res- Employ a detailed inventory system so you can make taurant already uses a POS 4. Promote Your Menu as many bulk purchases as possible while avoiding system to manage inventory 5. Diversify You Revenue spoilage. No matter what, use your buying power to and sales. However, it’s also find the best deal possible. More than likely, food is likely that you are not get- one of your business’ biggest expenses, and saving ting the most out of that technology. Most vendors have training guides de- even a few cents per pound you buy can translate signed to educate you on system features, so take the time and become an into significant savings. expert. Utilize your POS vendor’s website and customer support to get new 2. Leverage Technology updates for your POS system. Often vendors will also provide free training and to Minimize Waste and tips for their software that will help you get the most out of your investment. Mistakes Also don’t skimp on the hardware that goes with a POS system. Of course, POS (Point of Sale) and inventory software have be- a lot depends on the size of your business, but in general, buying one touch come powerful management tools for your business screen terminal for your whole wait staff doesn’t increase their efficiency in recent years. With a POS system, you can: since they stand around waiting to enter orders. • Track inventory and set reordering schedules If you’re about to buy a new POS system, shop around. There are a multitude of vendors out there, and many specialize in different segments of the food • Manage employee hours and manage service industry, like quick service, pizza, small independent, etc. Make sure payroll the vendor you choose offers a free downloadable trial version of their soft- • Track sales and identify trends, like best ware so you can check out the interface before you buy. Also look for ven- selling items, high margin items, and dors that offer updates and good customer support for their software. underperformers 3. Learn From “Regulars” and • Reduce waste from spoilage and ordering Incentivize Them To Come Back mistakes Perhaps your best resource for improving operations in your restaurant are • Eliminate unauthorized complimentary your regular customers. You have spent a lot of time building loyalty with this meals group and they have spent a lot of money patronizing your business. So take • Increase table turnover rates the time to survey and incentivize your regular crowd. • Increase staff efficiency Building an effective customer loyalty program is the best way to achieve this.
  • 4.
    Airlines have beenusing loyalty programs For one thing, these items are already a best seller, so why promote them? Another for years, but the food service industry has consideration, and a much more important factor, is that there are probably other only recently gotten into the game. Some items on your menu that have a much higher profit margin and aren’t selling. effective ways to implement a loyalty pro- A high profit margin menu item is one where a high percentage of the price of the gram: item is net profit. These items are often made from inexpensive seasonal ingredients • A loyalty card that gives rewards for combined with easy prep methods. frequent visits (such as eat ten Utilize multiple marketing strategies to promote high margin menu items. On menus, meals get one free) highlight them with a box or other attention grabbing graphic. Use email marketing • A regular-only e-newsletter for promotion, especially if they are a seasonal item. And train servers to sell high mar- with special promos, prizes, gin items whenever possible. and giveaways in exchange Every restaurant has bread and butter best sellers that form their reputation. But often for surveys and feedback the secret to higher profits lies in the high margin sleepers. Properly promoted, these • Bring-a-friend campaigns menu items can provide a real boost to your bottom line. Don’t be afraid to experi- that give away a free meal ment with different high margin items until you find a winning lineup that can be regu- to a regular who brings a larly rotated in and out of your menu for a year-round bump in profits. friend to eat who has never 5. Diversify Your Revenue Stream patronized your restaurant before. Running a successful, profitable restaurant is just like being a stock broker: you must di- versify to minimize risk. This lesson is even more relevant today considering the current • Special buy-in clubs that economic climate. So, you have a great concept, some popular menu items, and a target specific segments of decent dinner rush. Good. But your profit margins could be better, and your business your customer base. For more resilient, if you took the time to diversify. example, Hard Rock Café has a Pin Club for fans of the Some ideas: special collectible pins sold at Add retail items. Loyal customers love creative apparel the chain’s locations referring to your restaurant. Think of all the money the Hard Rock Café has made just from selling T-shirts and Focus on promoting your brand when im- hats alone. Plus you’ll get some great free advertis- plementing a customer loyalty program, ing for your business. and be willing to commit the necessary re- sources to fund an ongoing program. The Make your food more accessible. Customers love your cost can eat up a large part of your mar- menu, but they may not have the time or the inclination to keting budget, but the reward in brand sit in your dining room and eat. Consider carry-out for popular recognition, customer loyalty, and regular items, large party catering services, and even food delivery to feedback and customer information are make sure your customer can have your food whenever they vital to creating a stable base for your busi- want. ness. Host special events. Weddings, corporate functions, and large 4. Promote the Most parties often require specialized menus and pricing, but mak- Profitable Items ing your restaurant available for larger functions is a great way to sell out the place on on Your Menu slow days and to take advantage of high seasons, like corporate Christmas parties. Plus many of the guests at a large event have probably never been to your restaurant When it comes to analyz- before, so impress them so much they come back for more. ing which items to pro- mote on your menu, Create profitable partnerships. Chances are there are several other local businesses it’s important to that would like to reach your customer base. Come up with creative ways to give recognize two such partners advertising access to your customers…for a fee. This could include main catego- advertising in menu inserts, banner ads on the emails you send out, or product ries: best sell- giveaways at promotional events in your restaurant. Of course, there is a fine line ers and best here between annoying and pleasing your customer, but use constant feedback money makers. and modify your strategies until you get the formula just right. The result will be a That’s because the great revenue stream that is almost all profit. best selling items on your menu, while important, may not be the ones you Learn More Ways to Help your Profitablity want to spend the time and money promoting. http://blog.etundra.com
  • 5.
    No Training Budget? Spend nothing but TIME & New employees get some pretty good training for the first 90 days SUCCEED! after hire. After that, wait and kitchen staff receive very little or no Okay, you say, I get it, employee training is im- training, while management tends to receive more. No matter portant. But I can’t afford it right now, so what the size of your restaurant, ongoing training should be a corner- should I do? Well, as long as you are willing to stone of your overall strategy. Research shows that employees take the time, staff training doesn’t necessarily who are given regular career training and whose company phi- have to cost a lot of money. Sure, supplemental losophy revolves around a reputation for service are much more training materials and videos are more efficient, likely to stay longer and perform better, which attacks the biggest but when you need to cut back, training materi- monster in restaurant labor: high employee turnover. als aren’t a necessity. Some ideas for training on the cheap: ROLE PLAY WITH EMPLOYEES. START A MENTORING PROGRAM. CROSS TRAIN EMPLOYEES. Train Don’t take it the wrong way (and at least Assign your top servers and kitchen staff to servers how to be hosts, hosts how to be one person on your staff is going to snicker one new employee each. Have the new servers, line cooks how to expo, etc. The in the back every time you bring this up) employee do nothing more than follow benefits of cross training are twofold: your but role playing customer service situations the more experienced members of your staff will be able to fill gaps on busy nights with your employees is a very effective staff around for a shift a month. Not only or when you have no-shows, and they will way to train. If you hold regular role play- will the new employees learn by example, better understand how the restaurant op- ing sessions, the awkwardness will eventu- they will form relationships with your best erates as a whole, which usually means ally wear off and very positive employee employees, which encourages retention they will work better as a team. interactions will develop. and improves performance. Simple, effective training techniques usually translate into one simple principle: Take time out and spend it with your employees. It can posiiton you to succeed no matter what the economic climate is like. Let’s face it: a pizza & pub joint isn’t the most original concept out there. The difference between Nick’s and the next pizza place Why Nick’s {ISN’T} are the intangibles his customer perceives as added value. JUST ANOTHER PIZZA JOINT Nick Sarillo is a restaurateur with blue col- Reward employee development. Nick’s Encourage feedback – and actually listen lar roots based in the Chicago area. Sa- has additional training that is completely to it. Nick’s has a designated area for em- rillo’s Nick’s Pizza & Pub is a great example voluntary. Those who choose to take the ployees to give feedback. They can call of how the labor environment in food ser- extra training courses are rewarded with the management, all the way up to Nick vice is changing. Progressive restaurants automatic raises once certain levels are himself, into this “safe” area. In turn, man- are starting to place a high value on em- completed. agement listens carefully and takes a pro- ployee retention in an industry that has active attitude toward resolving the issues Spread responsibility around. In most busi- traditionally had extremely high turnover. that are brought up. nesses responsibility lies on managers. Those that do invest in their employees en- Nick’s approach is to create checklists in Creating a culture that reduces turnover joy a level of customer service that helps different areas of the restaurant for which and encourages excellence in service is them stand out from the competition. all employees are responsible. Once it is the way to make your restaurant stand out What are some of his secrets? completed, it is checked and crossed off from the competition. If your staff wants to by the manager. Spreading the responsi- come into work every day, then you’ve Take the time to hire right. The interview bility around means staff can accomplish found a formula that will help your restau- process at Nick’s involves at least two sep- tasks more efficiently. They can set their rant succeed where others fail. arate interviews. own goals for getting things done.
  • 6.
    Why Buying ScalesWill Save You MONEY! It’s not headline news to anyone in the food service industry that inventory control is very important in any restaurant. That’s why it’s surprising just how few restaurants view the use of scales as a way to manage shrinkage and really control how food product is used. In fact, scales should be the central tool in any res- taurant manager’s quest to make sure everything that comes in the restaurant goes out as a finished product a customer is paying for. The best place to start is with a receiving scale. As product rolls in the back door off the truck, weigh each bulk item and record the weight. That way you know exactly how much of each kind of ingredient you have available. This helps you in two ways: 1. You’ll know exactly when it’s time to order more product 2. If you’re out of product, but you only sold X number of entrees that use that product (i.e. not enough of them to be out), inventory shrink is happening, and it’s time to find the reason. Portion scales are a necessary compliment to your receiving scale. After all, if you’re measuring what’s coming in but not what’s going out, you’ll have a hard time man- aging your inventory. There are two kinds of portion scales: mechanical scales and digital scales. Scales = Accuracy. Accuracy = Less waste. Less waste = $$ SAVED! Less cost = MORE profit. Mechanical portion scales indicate and measure additional weight from zero. In other words, the mixing bowl you put on weights on a large, easy-to-read dial. the scale will weigh zero once you press the tare button and the scale will only register These scales are ideal for measuring bulky the weight of the ingredients you add to it. items that you’re cooking in large quan- You can measure ingredient proportions on a digital scale easily and much more ac- tities, like french fries or chicken wings. curately than with measuring cups because different ingredients compact differently in You’ll sacrifice a little bit of accuracy for a measuring cup. Flour is the best example. A cup of flour can weigh between 4 and 6 speed and convenience, which makes ounces, depending on how compacted it is in the cup. If you extrapolate that out to 4 sense if quantity is more important. cups of flour, you’ve got up to a 50% difference in the weight of the flour. Digital portion scales are much more ac- You can also calculate proportions more easily with a portion scale because you know curate and allow you to measure ingre- how much ingredients that are hard to measure with a cup weigh, like eggs. A recipe dients with precision. Use these scales for pasta might call for three parts flour to two parts egg. If two eggs weigh four ounces, for measuring out the ingredients to your then you know you need six ounces of flour. restaurant’s world famous secret sauce, anything that needs to be baked, and Finally, scales can help you manage another extremely important inventory item in other multi-ingredient recipes. The nice your restaurant: alcohol. Use a liquor scale to measure the remaining amount of alcohol thing about digital scales is that you can in each bottle at the end of the day and record the amount. You depend on alcohol reset the tare and calculate ingredient sales to contribute to your bottom line entirely too much for an inaccurate evaluation proportions very easily. of inventory. A liquor scale takes the guesswork out of the equation and allows you to compare hard numbers with your sales so that you can spot shrinkage and put a stop For those of you who don’t know, the tare to it quickly. on a scale is a feature that tells the scale FOR MORE MONEY SAVING TIPS to ignore the current weight on the scale Visit our Resource Center at http://rc.etundra.com
  • 7.
    How to growbusiness {without going broke} Growing a business is never easy, and trying to grow that business in the current economic climate is even harder, which is why a few key prin- ciples for small business ring more true today than ever: {Maintain your focus} Someone is always going to be trying to sell you something or help you out with another thing. Buying their product or partnering with their firm is your key to success. More busi- nesses have failed because they invested in things that didn’t help their bottom line than just about any other reason. You must maintain a laser-like focus on what your restaurant really needs and what might be nice, but isn’t absolutely vital to day-to-day operations. {Don’t forget who you are} Small independents do well because they have a local appeal and feel like they’re part of the community. A common mistake as a small restaurant tries to grow is to start trying to appeal to larger audiences by expanding menus, changing décor, and moving into larger locations. It may seem counterintuitive at first, but a crowded little local place with a hole-in-the-wall feel is much more attractive, and in the end more profitable, than a little-known name that just moved into a large, mostly empty space. You’ve been successful up to this point precisely because you are a small independent restaurant, not in spite of it. insurance companies, and anyone else who provides you a ser- {Be a tightwad} vice. Controlling overhead is the key to success, and if you lay the groundwork now, it is going to translate into better profits down Another trap small businesses fall into, especially successful ones, the line. is to start splurging on products and services. If you’re lucky enough to be making money, count your blessings and then {Sell the &*!# out of your product} continue to be a miser with the bank account. If you do spend In the end, restaurants are about making a product (your deli- money on something for your business, make sure it complies with cious entrees) and selling them to customers. The first four tips in Rule #1 above. You’ve gotten this far with a lot of hard work and this list are all about making production as efficient and as af- a lot of doing things yourself. Don’t let those good habits go by fordable for you as possible. Unfortunately, none of that matters if the wayside just yet. Keep your nose to the grindstone and keep you’re not selling meals. Make getting as many customers in the building up the treasury. door who also leave happy the top priority of your business. Re- {Be a cutthroat shopper} ally, this should be first on the list, not last. Don’t let focusing on the other tips cause customer service and sales to fall by the wayside! Relentlessly search for discounts on everything you buy. Search out rebates from credit card companies, utilities companies, {Success for your restaurant boils down to this: if more money is com- ing in the door than going out, you’ll live to fight another day} Ironically, most small business owners find that controlling the amount of money going out is a lot harder than growing the amount of money coming in. That’s why four out of five tips on this list deal with overhead and expenses. Striking the right bal- ance between growing sales and controlling costs is the key to growth in your restaurant.
  • 8.
    Factors for CalculatingTOTAL Cost of Ownership There’s always a significant amount of cost involved whenever you buy a new piece of restaurant equipment. Those costs only continue as that equipment ages in your restaurant – from energy use to repairs, the consequences of new equipment will be around for a long time after you’ve written the check to purchase. By and large, most independent operators do not undertake the complicated task of calculating total cost – usually because the information or the know-how necessary to make an accurate calculation isn’t avail- able. That’s unfortunate, because a single faulty or inefficient piece of equipment can mean thousands of dollars in extra expenses for a restaurant over the lifespan of the piece. Here’s a quick guide to help you get started on your own cost analysis before you buy your next piece of equipment: CAPACITY. The larger the piece of ENERGY EFFICIENCY. Often more efficient units have a higher purchase price be- equipment, the more volume it can han- cause more efficient components are also more expensive. However, paying 10% – 20% dle. The trade-off here is that larger equip- more for a unit that’s 30% more efficient means you’ll still be saving thousands of dollars ment also uses more energy. That’s fine over the entire lifespan of the unit. if you’re using that It’s common practice in the food service industry to shop aggres- capacity to generate Cost of Ownership sively for the lowest price point. While there’s absolutely nothing revenue, but one of wrong with bargain hunting, an unintended consequence of this the biggest traps small- Considerations is that many new units use old component technology that keeps er operations fall into is the price low even though those components are much less ef- • Determine capacity buying too much ca- ficient. Sometimes, spending a little more up front can actually including growing your pacity or not enough save you a lot of money down the road. business over the next capacity. 10 years. In general, you want SERVICE & PARTS AVAILABILITY. Every food service to size new equip- • Energy Efficiency could operator loathes equipment downtime. If your equipment isn’t ment capacity based save you 10-20% in the working, you’re losing money. Do some research on the avail- upon your best esti- long run. ability of equipment services and parts in your area before you mate of growth over buy. Also, get an idea of how easy it is to make do-it-yourself • Availability of the course of the unit’s repairs on a unit that will save an expensive service call. do-it-yourself parts life. A good piece of restaurant equipment • Ease of Use. EASE OF USE. Energy efficiency is important, but so is labor should last about 10 efficiency. A piece of equipment that’s difficult or dangerous to years. That means you operate means more training and a higher incidence of work-related injuries. In a high need to buy more capacity initially to ac- turnover industry like food service, equipment that requires a lot of training to operate commodate future growth. You’ll have doesn’t make any sense. Easy-to-use equipment that promotes employee efficiency is more energy expenses at first as you ramp an important factor. up to full capacity, but down the road, one piece of equipment is more efficient In many cases, the initial price tag has little to do with how much equipment will actually than two. cost you over its entire lifespan. The purpose of a total cost analysis is to help you make a more informed decision before you make the investment.
  • 9.
    Why An OilFiltration System Will SAVE you MONEY. $ MAINTAINING HIGH QUALITY FRYER OIL IS KEY TO ENSURING YOUR CUSTOMER GETS A GREAT TASTING PRODUCT EVERY TIME. If your restaurant uses fryers with any regular- ity then you already know how important it is to change fryer oil regularly and to keep the vat on A fryer oil filtration system removes food bits, which become carbonized if left in the oil and cause it to break down more quickly. Filtering also removes your commercial fryers clean. Changing fryer oil the harmful byproducts created when heated oil is a necessary expense in your operating budget, breaks down during the cooking process. Both of but that doesn’t mean it has to be a large one. If these elements reduce the effective life of fryer you take the time to filter cooking oil once each cooking oil and negatively affect taste and per- day with a simple filtration system, you’ll improve formance. its lifespan and quality significantly. The simple process of filtering fryer oil once each How does an oil filter system work? Simply drain day means you don’t have to change cooking oil the oil from the fryer vat into the filter basin. Once as often, and that means you spend less buying all the oil is drained, replace the plug in the fryer new oil. Investing in a fryer oil filtration machine and use either the hand crank or electric pump can reduce fryer oil expenses by 25% - 40%. That to push the fryer oil through a filter and up a hose means an oil filtration system will pay for itself very back into the fryer vat. quickly. 5 Strategies For BETTER The cost of refrigeration can be a hefty one for any restaurant. Refrigeration Efficiency Unfortunately, refrigeration is a necessary expense so that you can keep your inventory fresh and ready to serve. Luckily, there are some simple strategies you can employ to 1 help maximize the efficiency of your restaurant’s refrigeration systems and therefore keep costs to a minimum. 2 Here are the main areas you should focus on: 1 Clean those coils! The con- 4 Turn off door heaters. If you denser and evaporator coils take the heat have a problem with frost buildup or have inside your refrigerator and disperse it out- water pooling in front of the unit, then you side the unit, and if air can’t pass over the must have the door heater on. Otherwise, coils, then they radiate heat much more turn it off to save energy. slowly. That makes your unit consume more 3 electricity. 5 Be sure the door latch is working properly. A worn or bro- 4 2 Replace worn or torn door ken latch means the door gasket isn’t fully gaskets. The door gasket forms a seal sealed, and you’re losing cold air. Also use a when the unit’s door is closed, preventing door closer to automatically pull the walk-in 5 cold air from seeping out. door shut quickly after it’s opened. 3 Use a curtain in your For all your refrigeration needs walk-in. Strip curtains drastically reduce visit etundra.com the loss of cold air when the door to your When buying a new unit, Energy Star rated models are a smart choice. walk-in is open, and when it’s closed, the If you can’t find an Energy Star unit that works for you, upgrading to a new curtain adds an extra layer of insulation. unit will mean better efficiency simply because it’s newer.
  • 10.
    Managing Rising FoodCosts A s anyone who shops in the grocery store knows, the cost of food has been steadily rising for a few years now. The recent economic downturn has slowed that trend somewhat, but the reality is that everyone in the food service industry is dealing with rising food costs, and they will be for the foreseeable future. So what should you do to manage these rising food costs in a time when customers expect high quality and low prices when they go out to eat? HERE ARE SOME STRATEGIES TO HELP YOU COPE: Leverage your buying power. Be sure to take Your restaurant goes through a lot of food and ingredients. And every month a large advantage of seasonal chunk of your budget goes to suppliers who keep your walk-ins stocked. That chunk of deals. money is the core expense in your business, and the most important one besides payroll. Many ingredients can be purchased in bulk The upside to this is because you spend so much with food suppliers, that makes you an during seasonal peaks in production at a important customer to them, and important customers should be able to get deals and discount. Once you buy a seasonal prod- other perks from their suppliers. uct in bulk, get creative with different ways to work it into your menu. No matter what, The best place to start is to consolidate your food suppliers whenever possible. The more your menu should never be a sacred cow. you spend each month with a single company, the more leverage you will have in Constant tweaking and experimenting is negotiating discounts. If you can get a comparable product from a single company vital to helping you find the perfect com- without sacrificing quality, then by all means go with as few suppliers as possible. bination. Next, buy products in bulk whenever possible. Hopefully you have already invested in adequate walk-in freezer space. Buying core products and ingredients in bulk gives you access to deeper discounts, but this is only possible with plenty of walk-in space. Even if Finally, Manage you are short on storage space, seriously consider investing as soon as possible. Over the portions. long term this investment will pay off handsomely in savings when you buy bulk product. Every recipe calls for specific amounts of multiple ingredients. In a bustling kitchen, those portion amounts often get more and Work over your menu. more generous. This is costing you money. As food prices for some products rise, others fall or stay the same. At the same time, Take the time to train kitchen staff on cor- some items on your menu sell well while others decline. Constant evaluation will reveal rect portions and enable them to take the which menu items are making you money and which are not. Of course, you will always time to measure portions correctly every have core items that define your restaurant, but many fringe items can be changed time. A portion scale is also a vital piece and chopped as needed until you find a combination that works. of equipment to help you control portions. The cost to produce a menu item should be a major factor in this decision. High dol- Taking the time to train and enforce qual- lar entrees may bolster your servers’ check averages, but if the margin in that entrée ity control on portioning can translate into is small because of expensive ingredients, then you’re not doing yourself much good. significant savings over time. It may make sense to focus on less expensive items (especially when customers are In fact, all of these strategies have a cumu- looking for values!) that have a higher profit margin for you. Alternatively, you can take lative effect, and if implemented properly, existing menu items and interchange ingredients that don’t compromise quality but do can really benefit your restaurant's bottom make the entrée more affordable for you and your customer. line over time.
  • 11.
    How {Low Flow}CanIMPROVE Your {Cash Flow} Your restaurant uses a lot of water. You don’t need to be told how much that water costs you - you’re reminded every time you look at your monthly utilities bill. Even a small adjust- ment in daily water usage can make a huge difference in how much money you spend, and sometimes those adjustments can be astoundingly easy. Take, for example, the spray valve on your pre-rinse assembly. You want a strong flow of water so that dishes can be quickly rinsed before they go into the dishwasher. The problem with a strong flow is that a lot of water gets used very quickly, and that costs money. Low flow spray valves have become popular because they use a fraction of the water per minute as an older spray valve. Over the course of a year, a low flow spray valve can save you thousands of gallons in water usage and therefore hundreds of dollars on utilities. But will a low flow spray valve clean dishes? It took a company with a reputation like T&S to engineer a low flow spray valve that didn’t sacrifice any of the performance anyone would expect out of their pre- rinse. Their new low flow spray valves clean dishes just as quickly or even faster than any other manufacturer but they use half the water. That means as much as 100,000 gallons of water savings a year. “keep it simple” If there is one thing that sums up the success An- thony’s Pizza has had over the past 26 years, “keep it simple” is it. It all started in 1984 with one location near Denver’s 16th Street Mall and some quality New York style pizza by the slice. Anthony’s has since expanded to 28 locations along Colorado’s Front Range – a purposefully slow pace that ensures each pizzeria lives In the beginning, Anthony’s, like most tant. up to the high standards set by the original. other restaurants, was at the mercy of Anthony’s has worked out equipment That’s because keeping it simple doesn’t the price fluctuations of food distributors. and supplies packages with Tundra’s store mean Anthony’s skimps on the details. When you buy as much cheese as Antho- opening team, allowing new franchises to Each ingredient, including the dough, is ny’s does in a year, even small variations get everything they need in stages, com- prepared the old-fashioned way: fresh can mean big money. So they started plete with an itemized checklist. “You can each day right there behind the counter. their own distribution company called price check every spatula and ladle, or And every pizza is cooked in a stone oven LMT Group, Inc. Now he uses the buying you can focus on what’s really important instead of an industrial conveyor oven. It’s power he’s accumulated as a distributor – getting your restaurant open for busi- a simple combination that makes for some to pass savings along to the individually ness,” says Le Bel. “Running around trying outstanding pizza, and their classic over- owned and operated franchises bearing to save five cents isn’t going to get you sized thin crust slices are definitely a local Anthony’s name. anywhere.” favorite. “I worked hard at understanding the In a crowded fast casual market, serving Anthony’s Vice President John Le Bel takes food business and food costs,” he says. one of America’s most popular dishes, An- the same practical, down- “You’ve got to watch that stuff like a thony’s has excelled by sticking to what’s hawk.” to-earth approach he uses “When it comes to most important: giving the customer the to make pizza and applies Helping new owners gives best possible experience. With a lot of maximizing it to the other aspects of the franchisor the chance business savvy and a simple approach, the business. “It’s easy to efficiency, you’ve to impart more cost-saving Anthony’s has made New York style pizza be penny-wise and pound got to consolidate wisdom on Anthony’s grow- in Colorado their own, and that makes foolish in the food service buying power.” ing family of restaurants. In the Denver Area? business,” he says. “When Those hectic days leading Find an Anthony’s Pizza near you! it comes to maximizing efficiency, you’ve up to a new location opening is where ILoveAnthonys.com got to consolidate buying power.” keeping it simple is particularly impor-