For a successful kitchen operation it is essential to maintain the cost of sales (COG) cycle under control, below is a basic checklist for you to start analyzing food and beverage costs. Al you have to do is circle all items that apply to your restaurant and figure your score at the end of the checklist. I have also included a few quotations (just a few) from the “I thought I heard it all” file pertaining to food and beverage costs.
MENU INFORMATION (Menu Development, Product Information, Product Specification)
1) Menu is not easy to read or understand
2) Too many or too few menu items
3) Too many unpopular items on the menu
4) The food is poorly presented
5) Menu items are poorly priced
6) No balance between high and low-cost items
7) No consideration of product availability
8) Not enough employee to produce menu
9) Poor layout of or the wrong equipment
10) Poor training
11) Ineffective promotion of menu items: “we’ve got the best deals in town right here, look closer you might find them”
12) No standardized recipes or cost of sales information
13) Using the wrong method of preparation
14) Cooking food at/for the wrong temperature and time
15) No standardized service procedures
16) No specifications: “do we use it by the case or the jar?”
17) Poor information concerning suppliers
PRODUCT PURCHASING (Bidding, Ordering and Receiving)
18) No competitive purchasing
19) No centralized purchasing
20) Ordering too much or not enough
21) No record of costs or trends
22) Poor relationship with suppliers
23) No budgeting
24) Standing orders instead of flexible orders
25) Speculative purchasing
26) Implantation between purchaser and/or receiving person and supplier
27) No receiving records or procedures
28) No check on price, quality or quantity”
29) No system for returns and credits
30) Lack of receiving equipment
PRODUCT PURCHASING (Storage and Inventory)
31) Products are not refrigerated properly Products are not stored properly
32) No daily inspection of storage areas
33) Poor sanitation and rotation of products
34) Theft in storage areas
35) No procedures for requisitions
36) No physical inventory
37) No inventory reporting
PRODUCT TRACKING (Preparation and Production)
39) No product yield tests
40) No use for byproducts or leftovers
41) Over or under preparation
42) No record of waste
43) Poor record of items produced by kitchen
44) No comparison of items prepared vs. items sold
45) No sales and cost of sales analysis
PRODUCT TRACKING (Financial)
46) No audit of POS system or cash registers
47) Poor cash controls and sales records
48) Server or cashier theft
49) No procedures for complimentary or employee meals
50) No sales projections
SCORING: IF YOU CIRCLED
§ less than 5: maybe you should a write a book to help others
§ from 5 to 9: very good, keep going, cost of sales happiness is close
§ from 10 to 20: you’re not going for vacation this year
§ over 20: either get ready to work really hard or call Cooking pot f&b consultancy
Many of items 12-45 can be corrected by using the forms in “How to Control and Lower Food and Beverage Costs.” “How to Control and Lower Start-Up Costs” and “How to Control and Lower Other Operating Costs” contain forms that will help correct some of items 1-11. will be sharing in the next blogs.
Financial controls, items 45-50, can be found in “How to Manage Your Money.” will share it shortly.
If you haven't already done so, start checking your cost failure or call Cooking pot F&B consultancy we can help you, please complete this contact form or call and will be happy to discuss your needs.