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Affordability

If your business is turning R400 000 per month, then the FIRST 2 percentage points we save you in the FIRST month will PAY FOR THE SOFTWARE! After that all savings are on the house. The question is not whether your business can afford it… but whether your business can afford to be without it!

While you may not have any control over the weather, the economy or the state of the world, you do have the power to control what goes on within the walls of your food service operation.

Put in perspective, virtually nothing you purchased for your business in the last year will return your investment as quickly or efficiently as implementing the COST system will.

Who in your operation has the most to gain from implementing the COST system? Well, it’s the same person who has the most to lose if costs are not kept under control. Many operators ask, "What should my food cost be?" The answer is, "How much profit do you want to make?" As a food service operator, you probably work 60-80 hours a week and deserve to make a good return on your investment.

And who has the most to lose and will be the most outspoken against the implementation… members of staff “benefiting” from your lack of control, members of staff “profiting” from poor stock control and members of staff who may suddenly claim “it’s too much work!” Well the choice is yours, as was the money it took to open the operation.

Successful restaurateurs may never have to ask the question “how much am I losing?” but possibly they should ask, “how much profit am I NOT making?” Someone once said of Roulette, “The more you bet, the less you lose when you win.” Well he might have added that in a restaurant “The more you turn, the more you lose when you make.” Often it’s the high turnovers and profits that keep us under the misconception that all is well. It’s only when things get a little tight that we start to ask questions and rush to implement systems and it is usually at this point that you discover how much you where losing while you where making a profit. This money can never be recouped, only dreamed and theorised over.

Owners often describe those lost profits as shrinkage and speak of it like the Bermuda Triangle - they know it’s there, they are not sure where and have no plan to avoid it. One of Johannesburg’s best restaurateurs once explained it to me as follows, “Shrinkage? Shrinkage is when I send my laundry in for cleaning and a tablecloth comes back looking like a napkin… This is theft!”

"Our research has shown that full service restaurants spend 38 percent of their revenue on food costs, and limited-service operations spend 34 percent. Reducing food costs by 2 or 3 percentage points can mean the difference between staying in the black or sinking into the red," says Jim Laube, president of the Houston-based consulting firm RestaurantOwner.com. Here's some advice on how to reduce your food costs.

A prime solution Many operators believe that seeking bids from several suppliers for every food item will ensure competitive prices. However, Laube says this process is time-consuming and that tracking multiple suppliers is a headache. Instead, he suggests that you make one supplier your primary vendor. Start by identifying 15 to 20 food items that you use often and are available in high quality from a single vendor. Next, notify several suppliers who can supply all of these items that you are interested in finding a primary vendor. They'll drop their prices in order to gain more of your business, says Laube. "I've had clients reduce their food costs by 10 percent or more by going to a primary-vendor arrangement," he says. Avoid using a primary vendor that has not been in business long enough to establish a solid track record, adds Laube.

Taking stock Improving inventory control also can reduce food costs by preventing you from ordering too much of an item. In addition, it helps identify discrepancies between food sales and food usage because of spoilage, incorrectly rung items, employee theft, orders that are returned to the kitchen, etc. Laube recommends conducting inventory once a week, and tracking your key products daily. For example, if hamburgers are your biggest sellers, add the key ingredients in your burgers to your point-of-sale (POS) system to track their stock. When a customer orders a hamburger, the POS system will record that your inventory was reduced by one half-pound patty and one bun. "This also is a great way to reduce employee theft, because your staff will know you're watching," he says. If you find a shortage of an item, begin counting it twice a day to isolate the problem to a specific shift, says Laube. He advises scrutinizing storage rooms, the restaurant's backdoor and trash cans to pinpoint problems such as theft, waste, spoilage and cooking errors.

A warm reception Your receiving procedures directly impact your food costs, too. Your staff may fail to notice that suppliers have delivered too much food, resulting in charges for items you didn't want. Tighten your receiving procedures by recording each order when it's placed, says Laube. Include the name of the product, the quantity, the time and date it will arrive, and the price. When the items arrive, your staff can check the shipment against the written order. Employees should call the supplier immediately if they notice a discrepancy or if the quality of the food is poor.

Buy it! Contact our headoffice for more information on how to buy this amazing product. Tel : 082 8066 743