Monitoring your Cost of Sales percentage is one of the most important keys to restaurant success, as it allows you to take steps to improve the operation and ultimately improve the bottom line.
This is the food cost goal of your operation. This ideal food cost helps you plan your profit. If your operation returns an 18% profit running a 32% food cost, then you will likely be losing money if food cost climbs near 42%. Food cost can’t just be allowed to happen. It must be targeted or planned.
This is the perfect food cost. It is based on the principle of buying the correct product at the right price, receiving what is paid for, preparing, producing and serving only what the guest is entitled to receive, all the while maintaining adequate security measures.
This is the food cost that appears on your profit and loss statement. It is calculated by (beginning inventory + purchases) – (ending inventory). Read it and rejoice or read it and weep.
From fast food to fine dining to catering to institutional foodservice, the understanding of the cause, effect and interaction of each of the above three food cost principles will play a key role in the success or failure of your operation.
Shrinkage (or theft, to put it bluntly) is the enemy of profit. Shrinkage is the difference between theoretical, or perfect food cost and the actual, or real food cost. The difference between theoretical and actual in food service ranges from 2% to 15%. That is 2-15% of sales in lost profits and often the difference between a profitable food service operation and one that has closed it’s doors. Every food service operation has shrinkage.
This software package is being used by anyone from the food and beverage service industry that wishes to improve their bottom line.
A live demo can be requested at your offices within the Johannesburg and Pretoria region. The demo will allow us to show the top features to you face-to-face. You then have an opportunity to ask questions regarding your specific requirements or about the software package itself.
Once implemented, Ideal Stock Control is like turning on your headlights at midnight… Everything is so much clearer.
Ideal Stock Control has sold to many large restaurant franchise chains as well as single quick service establishments.