July 20th 1969 and man first walks on the moon. For those who have suffered the highs and lows of owning a restaurant, there can seem no tougher job. In fact, John F Kennedy said (and I paraphrase) “No single [sic] project in this period will be more impressive to mankind, or more important [sic]; and…
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…
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…
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…
The practice of tipping in South Africa is well established and until the introduction of minimum wages, was often the only income waitrons earned. Although tipping recognizes good service, it doesn’t benefit all staff. By comparison, several European countries and some U.S. restaurants have a policy of paying staff a salary with benefits including medical…
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…
It is hard to believe that it’s time to celebrate the end of another year, and what a year it has been! There have been so many changes in 2013 for the world in general and the food service and restaurant industries in particular. Some of the things this year has brought have been good,…
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…