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Kitchen Cost Control - Fine Food Perth, April 2013


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Presentation by Ken Burgin of Profitable Hospitality at the Fine Food Show.

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Kitchen Cost Control - Fine Food Perth, April 2013

  1. 1. Business Seminars Sunday 14 AprilKitchen Cost Control18 ways to cut expenses and increase efficiency with staff, purchasing,equipment, recipe costs and utilities. Start saving today!Presenter: Ken Burgin of Profitable HospitalityTwitter:
  2. 2. Ordering - start at thebeginning... • Standard ordering lists • Strong relationship with suppliers - use one, or play off several?? • Par (re-order) levels are agreed and set • Bulk deals...who really wins from ‘1 extra if you buy 10’ deals?
  3. 3. Orders by iPhone? Synced to your PC:
  4. 4. Deliveries – are your systems tight•Respect from delivery people – set times•Use a ‘detail person’ to check weights and quality.This may not be the person doing it now!•Good scales and thermometer at check-in point•Use food-safety laws to your advantage
  5. 5. Stock Levels – how many days?1. Work out cost of daily food used eg $3002. Count your food stock.If you have $3000 of stock, divide by dailyfood used: $3000 / $300 = 10 days of foodYou have 10 days of food in stock - too much!
  6. 6. Storage Challenge: 1.5 ℃
  7. 7. Green Saving is Money SavingMedium-sized foodservice business in Australia:• uses 2200 Kl water at an annual cost of $2,300• use 234MWh of electricity - annual cost of $26,000• creates 1500kL of trade waste - annual cost of $2,400(source - Restaurant & Catering Aust)
  8. 8. Recipes in WRITING!  Each week at least 3 are written and costed  Chefs need TIME to do this properly  A job for chef #2 or #3 – someone who would love the responsibility – (another detail person!)  Maybe even a job for the office – By the way…. whose recipes are they?
  9. 9. Profitable Recipe Manager: list ingredients
  10. 10. Profitable Recipe Manager: write recipes
  11. 11. Checklists for everything•Startup, change-over and end-of-shift lists•Phone lists•Ordering sheets•Cleaning rosters•‘How to use it’ guides•Laminated or in plastic sleeves
  12. 12. Work lists on iPad, synced to PC, iPhone etc
  13. 13. Cost Control Equipment • Good electronic scales that weigh and cost • Excellent refrigeration – time for new seals? • Good slicer • A computer for the chef • Combi-Oven is not just a steamer
  14. 14. Low-tech Cost Control
  15. 15. An ORGANISED workplace•Equipment that works•Equipment that can do the job quickly•Plenty of bench space•No storage on the floor•Good workflow patterns…the people you really wantLOVE an organised workplace!
  16. 16. Waste Watching...8 types of waste*1. Over-production2. Excessive wait times3. Transportation4. Over-processing* from Toyota
  17. 17. Waste Watcher...5. Too much stock6. ‘Motion waste’…7. Defect Waste8. Unused talent and feedback ignored…
  18. 18. Makeor Buy?
  19. 19. Understanding Profit... $4.00 $24.00 cost 40c cost $8.00 Cost 10% Cost 33% Profit 90% Profit 67%
  20. 20. Understanding Profit... $4.00 $24.00 cost 40c cost $8.00 Profit $3.60 Profit $16.00
  21. 21. Extra revenue
  22. 22. What is thebook-keeper doing?•Are they the best person for the job?•Weekly figures – always on time•MYOB is not enough...•POS data is not enough...•Other ‘checking staff’ may be needed•Great labour supply throughthe local uni or college -‘numbers people’
  23. 23. Staff number skills- they can’t help if they don’t understand…•Open the books a little more...•Explain what the numbers mean –eg food costs are 27% or food costs are 27c in the $
  24. 24. Design profit into the menu –eg you want to sell a new Chicken dish for$22 and make $18 profit:‘chef, what can youput together that’sgood - for $4?’
  25. 25. A Better Deal from Suppliers...
  26. 26. A Better Deal from Suppliers... What about: Fewer deliveries Delivery flexibility Larger orders Less packaging Substitutions OK No broken packs Faster payment Online ordering Order certainty Longer contractsYour A/c value: $100,000 pa or $200,00 pa?
  27. 27. Are your staff & managersreally competent?Competent staff have the skills, knowledgeand attitude you need… Knowledge Skills Behaviour & Attitude
  28. 28. Competent kitchen leaders:•Get the best from a team•Flexible leadership style•Can train people quickly•Good with figures and a PC•Manager more than an Artist...•Reporting to you regularly•Fit and healthy - no addictionsThere are good peoplelooking for a decent job -what do you offer besides money?
  29. 29. Essential: Kitchen Rosters with Real-Time Reporting
  30. 30. Print and Share Version (no costing) More info at:
  31. 31. Thank youResources: