Hc fb 003 e series 01 ways to cut costs 01

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F&B SERIES:
WAYS TO
CUT COSTS
HC FB 003 E Series 01 Ways to cut Costs 01

05
04
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Service & Quality
Marketing & Sales
Recipes & Controls
Objectives & Client
Values & Ambiance
Restaurant Rainbow

Daily inventory on key items.
End of the day, count the
ending inventory and
subtract that quantity
from total in #3
If actual usage is greater than
POS usage, investigate!.
Theft, over-portioning or
other food-use problem.
Beginning of the day,
count & record quantity
for each product. Later,
add daily purchases.
Result is the amount of each
product that was used.
Compare amount with POS
product usage report for each.
2 3 4 5 61
Identify your 10-15
products that make
up the bulk of your
food cost.
This is one of the most
basic, yet effective
cost controls in the
restaurant business.

Place a video
camera in your
dumpster area
Set up a video
camera in
your
dumpster area

• Dishonest employees will steal
individual steaks, bottles of
liquor, etc. by concealing them
in purses, backpacks and coats.
• However, to steal an entire case of
product, the favored method of
operation is to throw it in the trash,
and come back to retrieve it later...

• Key item inventory counts, help to
isolate missing product to a particular
shift or day; but knowing how the
product was stolen is often elusive.
• Having a video camera pointed toward
your back door and dumpster area,
allows you to play back the suspicious
periods of occurrence.

Check garbage cans
in the dish room too.
1
2
3
• Trash cans are
Potential profit holes
In the dish room too.
• Operators occasionally
inspect contents of
dish room trash cans
• Often find expensive
china, glass,
silverware, tableware.

Getridoftrashcansinkitchen
01
02
03
04
• Is at risk for losing good food
products to kitchen trash cans.
• If you have untrained or careless
staff in your kitchen – when they
slice, dice or prep good, usable,
expensive products can end up
in trash
Any restaurant

01
02
03
04
• Remove all trash cans
out of their kitchens and
replace them with clear
plastic food boxes.
• Each employee receives
a clear plastic food box
with their name on it.
Some operators

01
02
03
04
• To place all scraps, trimmings
and waste into their food box,
• At the end of each shift, a
manager inspects the contents
of each employee's food box,
• If a usable product is found, it's
immediately brought to the
employee's attention; may
need training or discipline.
Instruct your employees

01
02
03
04
• Replace kitchen
garbage cans for food
boxes - for 2 weeks
• Will give you the
opportunity to find
out exactly what's
leaving your kitchen
and ending up in the
dumpster.
"don't expect what you
don't inspect."

Very important
Suggestions
Prepare the weekly
labor schedule based
on anticipated sales
and customer counts.
As business slows or
ramps up, adjust
employee hours
accordingly.
Stop doing a
repetitive schedule.
Detailed specs are needed
to ensure consistency of
your products and to
accurately compare bids.
You may also discover that
a lower grade on some
products will still give you
results you want.
Establish and use
detailed specifications
for every product you
buy.

Consolidate purchases with a prime vendor arrangement.
• Buying a large portion of products from one broadline
supplier is much more common in more highly profitable
restaurants than it is in marginally successful ones.
• In most cases, consolidating majority of purchases with
one supplier tends to offer the opportunity to lower
overall food prices and costs.
• Prime vendor relationships mostly operate on a cost-plus
basis. Suppliers agree to a certain percentage or amount
of "markup" over their cost for a certain amount of time,
• Many successful independents even claim that their close
relationship with their prime supplier is one of the main
reasons for their success.

Audit first and last 15-30 minutes of the shift.
• "Work expands so as to fill the time available for
its completion." (Parkinson's Law).
• This means that when employees are given less
time for a task they will work faster and get more
work done than they are presently doing.
• You can tell if employees have too much time by
noticing their pace and sense of urgency during
the first and last 15-30 minutes of each shift.
• A casual or slow pace at begin or end of shift, may
indicate that they could get the same amount of
work done on their shift with fewer hours on your
clock.

Never allow employees to take trash to the
dumpster without manager approval.
• The easiest method for stealing is to discard the
stolen product with the garbage. Any access in and
out of the kitchen door should be controlled.
• Many restaurants keep the kitchen door locked by
installing a panic bar that sounds an alarm if used
to exit the building.
• Any exit is controlled by the kitchen manager or
designated supervisor.
• Specific times are set for removing trash; manager
will visually inspect what is being discarded.

Lower inventory levels
There's a limit to how much you can lower
inventory levels, but it's common to have more
food on their shelves than you really need.
Evaluate your inventory levels product by product;
base your reorder levels on how much you think
you'll actually use until the next delivery comes in;
add in a small but reasonable safety factor.
By reducing excess inventory you'll have less waste
and spoilage and you'll likely see your staff do a
better job of portioning and handling your
expensive products when there is less of it on hand.

Quality :
Are you interested in improving the Quality
of your “Independent” Hotel, B&B or restaurant?
Call now or e-mail for a free presentation!
www.hotelconsult.org emiliovargas@hotelconsult.org +1(786) 903.3787 Mobile & WhatsApp: 011+(504) 9847-6666 29
We will schedule your TIPlan
according to your budget and available time!
is a commitment for everybody in your
organization, at ALL levels, all the time!

✓ Hospitality Projects: From Owner Idea to Concept to Opening,
✓ Human Resources: Coaching, Training, Task breakdown,
✓ Hotel Management: Flexible low-cost Agreement, NO fixed fee,
✓ Quality Audits: Front & Back of The house, Standards,
✓ Consultancy, Advisory: Troubleshooting hotel operations,
HotelConsult
Creative Solutions for the Independent
Hospitality Entrepreneur
30
www.hotelconsult.org
emiliovargas@hotelconsult.org
+1(786) 903.3787 WhatsApp: +(504) 9847-6666

"you can't improve what you don't
measure“
W. Edwards Deming
"you can't manage what you don't
measure“
31www.hotelconsult.org emiliovargas@hotelconsult.org +1(786) 903.3787 Mobile & WhatsApp: 011+(504) 9847-6666

Thank you
for your time!
• HotelConsult
• Creative Solutions for the Independent Hospitality Entrepreneur
• We help you to:
• Plan. Resolve. Implement. Measure. Win!
• Contact: Emilio VARGAS
www.hotelconsult.org emiliovargas@hotelconsult.org +1(786) 903.3787 Mobile & WhatsApp: 011+(504) 9847-6666 32

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