Finances

Food cost is real and actual, what’s the catch?

Food cost – the percentage of their cost of raw materials in relation to the selling price.

A familiar situation when the estimated FC from 30% turns into an actual 35-42%? The financial result changes critically, and with a lack of turnover it can lead to a negative financial result!

The investor immediately has a question – WHERE IS THE MONEY?

According to observations, the actual FC increases by 5-12% on average. Why is this happening?

📍You do not control sales! Guests intuitively choose dishes with a lower markup!
📍The menu matrix is ​​​​ineffectively formed!
📍There is no daily work with the service group and an emphasis on sales of more margin items!
📍There is no motivational program for the service group for the sale of high-margin items!

Take control of the indicators listed above! In practice, it turns out to reduce the estimated FC to 5%, and ensure a minimum difference between today’s and possibly tomorrow’s FC of plus 10%.

Convert to your turnover and the answer to the question – Where is the money?
If the Guest chooses the entire order himself, then he does not have a feeling of good service and the profit is much lower.

Do not let Food Cost go by itself, review your work system! Increase the profitability of your enterprise!