Food cost accounts for 30% of your store's sales. By simply managing your food cost, you can improve your store's overall profitability.
- How Can I Control My Food Cost?
- Portioning Best Practices
- Limiting Waste Best Practices
- How To Run A Consolidated Inventory Usage Report
- Checking In SCC/Coke Deliveries
- Food = Cash
- DO NOT Ideal Inventory
- Calculating Food Cost Percentage
- Converting Ideal Percentages Into Dollars
How Can I Control My Food Cost?
Accurate Portions
By using accurate portioning not only do we create an easily recognizable flavor profile consistent with the brand, we also will be contributing to keeping our food cost in check.
Limiting Waste
Proper dough and product management contribute to a better food cost. This starts with accurate Food Ordering and Inventory and requires communication with your crew.
Portioning Best Practices
Portion Guides
Have portion guides in a easy-to-reference location at the makeline.
You can also use "F3" to view recipes on the makeline screen.
Memorizing Portions
Memorizing portions will help you gain speed on the makeline, while still retaining accuracy.
Never Use Frozen Cheese
Never use frozen cheese. This typically ends up over portioned and creates a poor product.
Use the Scale
Use the scale! If you are putting on a portion of a topping that you have not yet weighed out during your shift; use the scale to make sure your hands are calibrated accurately.
Calibrating Your Hands
Use a screen and 12 X 12 parchment paper tared out on the scale to practice grabbing accurate handfuls for each weight. Cover the display on the scale until you feel you have the right amount, then check how accurately your hands are calibrated! Repeat this process until your portioning is perfect every time.
Limiting Waste Best Practices
Accurate Inventory Counts
Accurate inventory counts are the first step in reducing waste. We use the data from these counts both to identify what items we have over/under used AND to predict what will need to be ordered on the next food order.
Regular Food Variance Review in PWR
You can also identify over/under usage trends in your store by reviewing food variances in PWR. Be sure to communicate these variances with your crew so everyone knows what items to focus on.
Electronic Food/Coke Orders (EFO)
Electronic Food/Coke Orders are based on predicted sales in PULSE and take into account inventory on hand, past usage, as well as margins set by the store. If short shelf-life items are over ordered, they will likely go directly to waste, negatively affecting your food cost.
Red Straw Method
The Red Straw method is a great way to communicate these over/under usage trends. For example, if Grilled Chicken is consistently being over topped, you would place a red straw in the tub on the makeline as a reminder that this item needs to be weighed out every time, for every portioning.
Regular Consolidated Inventory Usage Review
By regularly reviewing your Consolidated Inventory Usage you can identify over/under usage trends in your store. Be sure to communicate these variances with your crew so everyone knows what items to focus on.
Reduce Remake/Bad/Cancelled Orders
Remake/Bad/Cancelled Orders will also effect your food cost negatively.
Proper dough management, recipe and portion memorization, and proper training on phones are great areas to focus on to reduce Remake/Bad/Cancelled orders.
How To Run A Consolidated Inventory Usage Report
Checking In SCC/Coke Deliveries
Making sure that PULSE matches what was actually received in the store is an important step to managing your food cost. Your invoice and PULSE entry must match. If an item wasn't delivered, you will need to ask for a credit.
Food = Cash
Food variances should be no different! Investigate and double check all variances before running End of Day.
Was an delivery invoice not put in?
Is a swap missing?
Did we have products Expire?
DO NOT Ideal Inventory
Running out of food
Having expired food
Accounting issues
Calculating Food Cost Percentage
To Calculate Food Cost Percentage, Divide the Sell Price of by the Total Ideal Food Cost of an item.
Let's take an example of a Large Pepperoni sold at $10
The Total Ideal Cost based on our standard portions adds up to $2.66. If we are selling this pizza at $10 to the customer...
$2.66/$10 = 26.6% or about 27% Ideal Food Cost Percent
Converting Ideal Percentages Into Dollars
example: $3300 X 2.5% = $82
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