October 30th, 2008 Posted in F&B, Food Controls, Restaurant | No Comments »
Are rising food costs decreasing your restaurant’s profits? You better act now! We anticipate the cost of food, especially the staples, to continue to rise. Food and Beverage Departments for hotels are typically low profit areas and can easily turn into no profit areas if you do not react quickly. Here are some things that you can do:
Know Your Food Costs – It is surprising how little hotels actually know about their food costs. Most hotels have a breakfast buffet, however, few hotels have any idea what their food cost is on the buffet. Most just assume they are making a high profit because they were taught that buffets were always high profit. Not true. Spend the time to calculate your buffet cost. You may be surprised to find out that your buffet food cost is 40 or 50 percent!
Here is a simple way to find out the food cost for your buffet: Have the kitchen log every single item that is used on the buffet during a 7 day period (10 cases of bacon, 22 cases of eggs, etc). At the end of the week, add up the total food expense and divide it by the amount of revenue you posted for those days. Be sure to do it for a whole week because you will find that your weekend food cost is very different than your weekday food cost. Also, be sure to add in all items included with the buffet such as juice and coffee.

Re-engineer Your Menu – Hopefully, you are using a spreadsheet or computer program to monitor your menu engineering. Be sure to re-evaluate your menu every single month. For additional menu engineering help, check out this article.
Read the rest of this entry »