According to the external stock taker I was talking to yesterday, anyone in hospitality who thinks they haven’t got steeling going on is dreaming! Harsh words, but he was speaking from his years’ of experience.
How would you know if you had even minor problems with your stock – the odd free drink to friends, or a couple of fillets steaks for the weekend?
Unless you are on top of your figures it’s so difficult to spot when you have a problem. Sometimes it can go on for years undetected.
- Do you know how much money you made last week?
- Do you know how much your most popular dish is costing to produce and what profit (or loss!) it generates?
- Do you know what impact a 1% increase or decrease in spend per head would have on your bottom line?
- Do you know the return on your marketing investment from your last promotion?
No matter how compelling your marketing, how amazing your food, how extraordinary your service, and how happy your customers, at the end of the day if you aren’t making money on what you sell you have a problem. And unless you have a way of detecting this quickly the longer it can go on without you realising.
Stock control is key and here are some suggestions for keeping control on your stock. But it’s more than that.
Here are the top 4 things that you must keep on top of:
Regular recipe costing
- Cost your recipe before you put them on the menu to decide if you can afford to put them on the menu at prices your guests are willing to pay
- Post cost to check that what the chef produced is in line with what you initially planned. Ingredients coming in at higher prices, shrinkage, difficulties with portion control, wastage can all have an imp[act on the actual dish cost
- Re cost the dish whenever any of the key ingredients fluctuate in price
- Knowing your stars – the high profit items, so you and your team know what to promote. Identifying the actual profit in monetary terms, not just percentages.
- Showing your team the margins so they understand why some dishes need more of a push than others helps them understand the significance of why you might want them to sell more of one dessert than another
Your profit sensitivity
- What impact small changes on spend per head, customer numbers or number of visits can have on your bottom line.
- This is key to understand before you even consider giving any discounts.
Your bottom line profit and loss.
- Too many restaurants leave far too long a gap between calculating their profit. Yes, it’s a chore taking stock, but unless you do you can never get anything like an accurate figure on your profit. And worse still unless you physically take stock you’ll never know when you have a problem with wastage or pilferage.
So to help you get on top of your figures I’ve bundled together my top 4 favourite tools, and am offering these at a special price for the whole of this week in honour of my birthday, plus I’m adding in a special bonus gift. Click here to learn more