A sad truth of the food service or hospitality industry is that shrinkage is universal. No matter how small or large the business, some degree of shrinkage affects profitability. This may be due to waste, unintentionally providing customers with more food than they have paid for, or even employee theft. While the first is inevitable…
It’s nearing the end of a very eventful year that has had more than its fair share of surprises around the world, in the rest of Africa and here in South Africa. 2016 has been volatile, complex and fast changing for both the technology and foodservice industries, both globally and locally. On behalf of Ideal…
Stock control and cost control are vital aspects of most businesses, and it’s important that as a restaurant, you control your stock precisely. In an industry beset by thin margins, this means being able to analyze the stock you need and the stock you already have in order to maximize profits. Analyzing Costs The first…
Theft from restaurants lowers profits and can bring about the collapse of a business. Most stealing is done by employees, and involves cash, food, alcohol, supplies, and equipment, but customers and burglars may also account for some of the losses. These ten tips help to reduce restaurant theft. 1) Be There Managers or owners should…
One of the reasons franchised fast food outlets are profitable is because they have a handle on their input costs, especially their food cost. The reason is simple, they exercise good portion control. In conventional restaurants, portion control is equally important. Not only does this help control food cost, but it also creates predictability for…
Managing food costs yet offering quality fare in your restaurant may seem like a difficult task, but there are ways to do it. Use these 10 tips to get your business moving and improving. 1) Choose Prime Vendors Continually shopping around for best prices may seem sensible, but if often takes up too much of…
Do you know how many thousands of dollars your business throws away each year? A pound of hamburger or head of lettuce may not seem like that much in the short term; however, each month they can add up to a very large amount of money. Overstocking, spoilage, waste and theft are all food costs…
The Effects of Seasonality on Life-Cycle Pricing To cope with an increased demand of inventory is to understand seasonality and that seasonality is in fact predictable. Seasonality is a cycle of time that is predicted by repetitious consumer behavior and product demand. There are two classes to seasonality: Broad Seasonality and Event-Related Seasonality. You’ll want…
Watching the bottom line is essential to operating a profitable business, and finding ways to alleviate rising food costs in your restaurant is crucial to success. With today’s escalating transportation costs adding to the variable price of inventory, it can be extremely difficult to monitor profit and loss areas without software that is designed specifically…