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Checklist Ways
How to Cut Costs Without Reducing Quality or Guests Experience
By Jim Laube and Joe Erickson

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often 34 33 32 31 W e29 talk aboutits inastounding number of ways there are to loseormoneyoffice. This being 30 business, whether the the kitchen, dining room, bar, storage areas back in the restaurant

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16 15 14 13 12 11 10 9 8 7 6 inventory levels. how much inventory 5 4 3 2 1 Lower common for manyObviously, theres a limit tofood on theiryou can lower they reallylevels, but its restaurants to have more shelves than need.
Here are 50 proven practices that restaurants large and small have found to be effective in reducing losses and, as a result, put more of their hard-earned sales dollars on their bottom line. You might find it helpful to use these 50 items as a checklist to spot potential problem areas. While some may not have the potential to generate significant savings, it is important to remember the cumulative effect that successful implementation of several of these controls could mean to the overall profitability of your business. Evaluate your inventory levels product by product and base your reorder levels on how much you think youll actually use until the next delivery comes in and add in a small but reasonable safety factor. By reducing excess inventory youll have less waste and spoilage and youll likely see your staff do a better job of portioning and handling your expensive products when there is less of it on hand.

28 27 26 25 losses by modifying how they do business in these areas. 24 23

the case, it stands to reason that there are also lots of things that operators can do to stem potential

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15 10 50 4 44 40 14 9 49 3 43 39 22 50 49 48 47 21 20 19 18 13 12 16 44 43 42 41 15 14 13 12 8 7 6 48 Daily 46 45 on key items.40 39one8 the 47 inventory This 11 10 is restau9 of 7 2 most basic, yet effective cost controls in the38 37 1 rant business 40 were constantly amazed at how many in42 41 and 5 34 33 32 with 4 begins 31 2 1 dependent operators dont do it. This practice3 identifying your top 10-15 products that make up the bulk 38 37 36 35 of your food cost. Each day, count and record 27 beginning 28 the 26 25
or opening quantity on hand for each product. Add to that any purchases during the day. At the end of the closing shift, count the ending inventory and compute the usage for each item by adding the beginning quantity and the purchases, then subtract the ending amount on hand. The result is the amount of each product that was used. Now, compare that figure with the POS (point-of-sale) product usage report for each product. If actual usage is greater that the POS (theoretical) usage, investigate immediately. Could be a sign of theft, overportioning or other food-use problem.

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16 15 14 11 10 9 5 4 3 at risk for losing good, usable food products to their to offer the opportunity to lower overall food prices and costs. kitchen trash cans. If theres a training gap or people are Prime vendor relationships can be structured in many ways but 34 in 32 31 30 29 50 careless when slicing, dicing or prepping anything33 your most operate on a cost-plus basis. Suppliers agree to a certain 49 48 47 46 45 kitchen, good, usable (and expensive) products can end up percentage or dollar amount of markup over their cost for a 28 27 26 25 amount of 44 in the 42 41 know of operators who occasionally re- certain 24 23 time, often a year. While some operators say 43 trash. We 40
employee receives 21 20 40 them with clear plastic food boxes. Eachon it. 22 50 then 39 38 37 36 35 a clear plastic food box with their name They are 49 50 49 31 all 29 45 place 15 43 14 34 instructed own food30of46 the end of each 16 anda waste 33 their to48 47 their scraps, trimmings 44maninto 32 box. At shift, ager briefly inspects the 40 44 43 42 41 contents of each employees food 10 9 immediately 28 box. If 26 25 24 23is discovered, its11 40 39 27 good, usable product 50 brought to the employees attention and, if necessary, they 40 39 38 37 36 35 As they say, dont ex5 4 3 22 receive20you19 18 17 Ditching your kitchen34 33 21 some on-the-spot training. pect what dont inspect. garbage 44 34 33 32 31 30 29 cans for plastic food boxes, even for a just week or two, will 16 give you the perfect opportunity to find out exactly whats 15 14 13 12 28 40 27 28 your 26 25 ending up 11 leaving27 kitchen7and 24 23 in the dumpster. 21 10 9 8 6 22 34 the 22 Check20 19 cans in17 dishthe dish too. Trash 21 aregarbage 18 holes in room room too. 5 4 cans 2 potential profit 3 1 16 28 15 Smart operators occasionally inspect the contents of dish 16 trash cans and often find expensive china, glass, sil15 14 13 12 room 11 10 verware and other tableware. 22 11 10 9 8 7 6 5 4 16 5 Place a3 video camera inoftentimes steal individ4 2 1 will your dumpster area. Dishonest employees ual steaks, bottles of liquor or other expensive items by 11 concealing them in purses, backpacks and coats. However, for an employee to steal an entire case of product, the fa5 vored method of operation is to throw it in the trash and come back to retrieve it later. Key item inventory counts help to isolate missing product to a particular shift or day, but knowing how the product was stolen is often elusive. Having a video camera pointed toward your back door and dumpster area allows you to play back the suspicious periods of occurrence.
GOOD RESTAURATEURS ARE ALWAYS LEARNING

15 14 13 19 18 17 10 9 8 50 49 48 13 12 4 3 2 44 43 42 8 7 6 Get rid of trash cans in kitchen. Any restaurant38 40 39 is 2 1

ster without manager approval. As described in the previous tip, the easiest method for stealing is to discard the stolen product with the garbage. For this reason, any access in and out of the kitchen door should be controlled. Many restaurants keep the kitchen door locked by installing a panic bar that sounds an alarm if used to exit the building. Any exit is controlled by the kitchen manager or designated supervisor. Specific times are set for removing trash, giving managers the opportunity to visually inspect what is being discarded.

46 45 17 40 36 Never allow employees to take trash to the dump6 35 30 29 24 23

12 purchases a 7 ConsolidateWeve noticedwith the prime vendor ar6 rangement. that practice of buying a 47 46 of large portion45products from one broadline supplier is much 1 more common in more highly profitable restaurants than it is in marginally successful ones. While one-stop shopping, as 41 40 its sometimes referred to, is no panacea, in most cases consolidating the35 37 36 majority of purchases with one supplier tends

move all the trash cans out of their kitchens and replace

19 18 17 48 47 46 45 13 12 42 41 40 8 Audit first and last 15-30 minutes of every shift. 7 a 38 Theres36saying that Work expands so as to fill the 37 6 35 49 48 47 46 45 time available for its completion. (C. Northcote Parkinson, 2 1 Parkinsons Law). This means that when employees are given 32 time for a41 40 will work faster and get more work less 42 task they 43 31 30 29 done than they are presently doing. In restaurants, you can 26 38 24 36 25 37 23 often tell if employees have too much time by noticing their 39 and sense of urgency35 the first and last 15-30 minpace during 50 32 shift. A 46 slow utes of49 48 47casual or45 pace especially during each 20 19 18 17 29 33 31 30 these times may indicate that they could get the same amount of work done42 their shift with fewer hours on your clock. on 44 43 12 41 40 14 13 25 24 23 27 26 repetitive 35 week 40 Stop doing a37 based on anticipated salesthe week39 38 6 9 ly8labor7schedule 36 schedule. Prepare and cus21 20 19 18 17 tomer counts. As business slows or ramps up, adjust em34 hours accordingly. 3 2 1 ployee33 32 31 30 29 15 14 13 12 28 Establish and use24 23 specifications for every 27 26 7 detailed 10 product8you25 Detailed specs are needed to en9 buy. 6 sure consistency of19 18 17 and to accurately comyour products 22 21 20 also discover that a lower grade on some 4 3 may 1 pare bids. You2 products will still give you results you want. 16 15 14 13 12 11 Dont rush your people are swamped and During the 10 accept8deliveries 6 7 during lunch. cant do an lunch 9 accurate job of checking in your products. Have a policy that 5 4 3 2 1 states no deliveries between, say, 11 a.m. and 1:30 p.m.

they have not found a prime vendor relationship particularly advantageous, many successful independents have and some even claim their close relationship with their prime supplier is one of the main reasons for their success.

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42 41 40 34 33 32 31 30 29 25 24 23 50 49 48 47 46 45 38 37 36 35 28 27 26 25 24 23 19 18 17 44 43 41 40 32 31 Ensure29 maximum usage of your products. 42 Calibrate dial scales. Dial scales are inexpen30 the 22 some18 17 13 12 Have a plan to use usable trim and byproducts21 20 19 sive and handy portioning tools. But scales can get 40 39 dropped or knocked around, which can lead to inaccurate 38 37 36 35 26 where else on23 menu. Soups, garnishes and even sauces 25 24 the 8 can be prime candidates for food that may be going straight readings and weights. Keep your scales (and portioning) ac7 6 16 15 14 13 12 34 33 curate by regularly calibrating them using a separate weight 32 31 30 29 to19 18 bin. your trash 17 20 1 49 48 47 46 45 2 11 10 9 like a roll or two of coins. A roll of dimes weighs 4 ounces; 8 7 6 Use a bus tub for plate scraping in the dish land- a49 of25 47 8 23 45 roll 48 24 46 quarters, ounces. 50 14 13 12 40 5 28 27 26 4 43 42 ing area. One of the most common places to lose sil-3 2 1 41 Focus on selling your highest gross profit menu 21 19 18 17 9 verware37in 36dish landing area. As plates and glassware 8 is the scrape 50 are returned,47 46 busboys or dishwashers will22 44 43 items regardless of food cost. There are times when 49 48 6 39 the leftovers into an35 45 container along with the a 20 42 41 40 mean more profit. Such is the case 38 7 waiters, trash open higher food cost can 3 occasional knife, fork or spoon. Although the magnetic lin- when you promote and sell more high-cost dishes like steak 2 42 41 40 1 16 40 39 38 37 36 35 15 14 13 12 44 ers used31 some help to reduce loss, the best method used or fresh seafood and sell fewer lower-cost items such as spa33 43 by 30 29 32 to placed on the dish a high 11 34 33 or8 31 30 29 10 9 32 7 6 While 40 is39 scrape dirty platesit into a bus tubfor staff to see what ghetticostgrilled chicken.bring inthe steak may havedollars, area. It food it will usually more gross profit 27 landing38 37makes 35 easier 26 25 24 36 much 23 50 49 48 47 46 45 has been tossed and the dishwasher can separate 5 errant resulting in higher food cost but a larger profit too. 4 3 2 1 28 27 26 25 24 23 34 utensils32 31 30 the scrapings. 33 19 18 17 29 21 20 before emptying 44 43 42 41 40 49 48 47 46 45 22 50 Calculate and report on your cost of sales and la20 19 18 17 28 27 Buy only what you need. Overpurchasing is one of 21 bor cost every week. Its a fact: What gets measured 26 25 24 23 15 40 the most expensive things you can do in this busi- improves your bottom line and your biggest and most vola14 39 38 37 36 35 13 12 44 43 42 41 40 15 14 food, beverage 22 ness. It 20 to more waste, spoilage and overportioning. 16 tile costs are 13are 12 toand alabor costs. These costs 21 leads 19 18 17 10 9 8 7 6 added together referred as cost 34 Use purchase orders. Keep a record of what you and the 9 38 37 36 35 restaurants primeknow 33 32 31 30 29 11 40 39 8 7 restaurants in the industry 10 most profitable 6 4 15 14 13 quantity 2 16 45 ordered,1 12 the When there is a 46 At3check-in, 26the 25 this ordered and the quoted price. their prime cost at reactend of every week. resolved instead 34 33 32 1 30 and 28 27 verify that 24 matches what is physically at5 problem,3they2 31 quickly29 get it 23 can 4 11 10 9 and on7the vendors door 8 a problem exists 40 the back21 usually19 in6your17invoice. Mistakes happen of not knowing once a month. when this information is and they are 20 only calculated 22 3 2 1not 18 favor. 28 27 26 25 24 23 5 4 50storage 48 47Dont 45 Lock up and dispense towels, aprons and napkins. 49 rooms. 46 36 35 Dont let drivers into your 16 tempt people13 dont even work for you with help- 22 An often overlooked18 for cost savings is that of linen 15 14 who 12 21 20 19 area 17 44 43 After properly and laundry. One method to reduce this cost is to issue tow42 41 40 30 ing themselves to your expensive products. 29 10 9 8 7 11 16 15 at beginning checking in a delivery, have one6 more of your employees els and aprons14 the13 12 of each shift rather than allow or 40 39 38 37 36 staff to get them whenever they want. Likewise, you can re35 put it away. 24 23 4 3 2 1 5 duce linen napkin usage by7 11 10 9 8 limiting their use for service only. 6 Calculate cash over/short with each checkout. Never allow your staff to use napkins for cleaning. 34 33 32 31 30 29 18 17 When using a POS for ringing sales before the menu 5 4 3 2 1 item can be produced, as explained earlier, the obvious exLock up your liquor, beer and wine. A proven 26 25 24 receipt 12 pectation is that there will be a28 27of cash or credit 23 method for reducing theft and unrecorded sales is to process the backup inventory of lock 47 card to45 for that sale. This two-stepgeneratedwhereincash keepkey. Establish a fixedliquor, beer and wine underitems 46 pay 22 19 17 par level for all beverage 7 revenue (sales) side of the equation is 21 20at the 18 and 6 level, and the settlement side is be stocked bar. At the bar 41 register or POS receipts, provides16 15(receipts)13 sys- that willshould bringintoyour manager allend of each shift, bar40 a check-and-balance 12 tenders the empty liquor bottles 1 based on actual 14 37 tem in 35 between should equal receipts. When theretoisas (do number ofbartenders to throw liquorneeded to bringand 36 which sales the two it is commonly referred a7 the not allow each beer and wine item empties away), the difference 11 50 49 48 47 46 45 10 9 8 6 cash over and short (Cash O/S). By using a properly de- stock back to par. Never give the employees the key to the 31 signed cashier checkout form you can catch cash discrepan-1 liquor room and only allow management to issue the resup30 29 5 44 43 42 41 40 4 3 2 cies for each cashier. Typically youd like to see this figure ply stock. Keep a perpetual inventory log of all items issued deliveries from vendors. Properly maintained, the 25 no higher than $2 to $5 for a given shift. 39 38 37 and of 35inventory log should always match the physically 24 23 40 36 perpetual

that weight. inventory. 20 19 18 Use a scale. Weigh productsscaleyou buy by32 31 counted29 andKeeping a perpetual inventory also sim17 Drivers know who uses a and 33 doesnt. who 34at least weighing plifies ordering week-ending physical counts. 30 Protect yourself from being shorted by Clean draft beer lines regularly. Have you ever 14 13 certain products on a spot basis. Many restaurants weigh 12 28 27 26 25 24 watched as your bartender is pouring a draft beer and 23 everything they buy by weight. has the glass tilted to the spout while foam flows down the 9 8 7 6 22 21 20 19 18 17 3 2 1 16 15 14 13 12 11 10 9 8 7 6
GOOD RESTAURATEURS ARE ALWAYS LEARNING

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49 48 drain wastefinally getting the5glass full? On percent of draft clocking out for the shift and the manager willof employees 47 until anywhere from percent to 10 average, restau- shift card. This not only reduces the number note it on the 46 45 rants beer purchases by allowing them to simply go down the who forgot to clock out but also makes it easier for man50 49 48 47 46 45 43 42 drain along with your profits. Temperature, air pressure agement to stick to the budget. The shift card also serves as 41 40 and dirty beer lines greatly affect the43 42 get from a handy tool for making notes to be logged in the managers 44 yield you 41 40 39 38 draft beer. Have your vendor clean and service your beer logbook. To learn more, visit www.restaurantowner.com/ 37 36 35 lines regularly. In many states your beer vendor is 37 36 ShiftCard. 40 39 38 allowed 35 clean your lines 33 32 to31 30 29 for free. Use requisition printers for kitchen and bar; preUse glass racks to store 34 33 32 In 31 fast dirty glasses. the 30 29 ring orders before service. Whether you have a lim50 49 48 pace of23 45 tables, loose glasses, especially dirty ited-service or full-service restaurant, having a POS or cash 27 26 25 47 46 24 turning ones, will eventually get broken.28 can reduce breakage register system capable of sending orders to the kitchen or You 50 49 48 47 46 45 27 26 25 24 23 44 43 significantly 40having enough proper-size dishwasher stor- bar will help reduce your cost of sales by at least 5 percent. 21 20 42 41 by 19 18 17 stor age racks. Have staff place all soiled 44 43 in its re- By putting in place a system in which orders must be rung glassware 42 18 40 22 run 20 19 41 17 40 39 spective rack36 35 dishwasher can21 them through. up before the product can be prepared or served, you ensure 15 14 38 37 until the 13 12 Store clean glassware in the racks and place on mobile rack accountability and reduce the opportunity for theft. 16 40 39 38 12 36 35 15 14 13 37 34 33 dollies 31 transport. 10 9 32 for 30 29 8 7 6 Eliminate the open food and open liquor keys 8 7 6 29 Use a metal detector to 11 34 33 32 31 30 from your cash register. Every item you sell scan 10 9 soiled linen bags. 4 3 2 25 24 how 1 28 27 26 Its amazing 23 much silverware gets thrown into should have a predetermined selling price, including up4 27 2 1 24 23 3 9-11, a soiled linen bags. Several years 5 28 before49 48 charges and45 ago, well 50 26 25 47 46 add-ons. When you establish a selling price 22 21 general19 18 for17 very high-volume steak-and-seafood you also establish the anticipated profit. Having an unre20 manager a restaurant was determined to reduce the loss21 expensive stricted17 key doesnt require a manager reduces of 20 19 18 open 22 44 43 42 41 40 16 15 silverware. He went to a local spyware shop and purchased the effectiveness of requisition printers because it allows 14 13 12 metal detection airports. 50 a49 48 47 wandwouldthose now used at40 39 The verbal 36 35 46 like periodically check 14 38 37 order overrides. 45 16 13 11 10 restaurants managersto be taken to the storage15 linen bags 12 Cost out every menu item and recipe. To be prof9 allowing them 8 7 6 before area outside. prof 11 34 9 32 7 30 a restaurant not only needs to achieve spe10 the 8 6 44 The dishwasher and bussing staff cringed each time33 de- 31 itable, 29 43 42 41 40 5 4 tector sounded. They were ordered to empty the entire bag cific sales goals but it must also hit certain cost targets as 3 2 1 4 utensil. 25 3 2 40 and go38 37 each napkin to find the5discarded 27 26 well. However, if you dont know what your target should 39 through 36 35 28 industry be1then24 23 you expect to hit it? The first step to Fortunately these detectors made it into the supply how can cost 34 and are32 31available and widely used. 22 21 20 projecting a 17 target is to create a master inventory 33 readily 30 29 19 pricing every 50 49 list and18 46 of45 ingredient you purchase. Using 48 47 28 27 Costschedules should be made wemeet16 out ear- the master inventory you can calculate the cost ofselling 26 out your schedules. As to pointed demand recipe 12 menu item for comparison with the every 15 14 13 and lier, 25 24 23 the 44 43 42 41 40 of anticipated sales. Additionally, costing out your sched- price of the menu item. To learn more, visit www.restau8 7 6 22 ule by 49 48 47 number of hours times the40 39 rantowner.com/MenuCost. 21 multiplying the 17 45 hourly 50 for20 19 18 46 provide a daily 11 10 9 38 37 36 35 rate each employee will labor budget 3 2 31 30 29 1 If 16 target. 43sales are41 40 expected then5labor4needs 32 Calculate your ideal cost regularly. The prerequi15 14 42 12 than 13 lower 44 reduce somewhat as well. Actual labor cost34 33 should should site for controlling food cost is to know what your with 7 11 be compared38 37will6becomea familiar with the ebbs food cost shouldexerciseyourcosting outtarget.entire menu (as 10 time, managers 36 35 measure of efficiency. go through the be of food cost your First, you must 9 8 sales daily as 40 Over 39 28 27 26 25 24 23 and flow of sales volume and can react by cutting or add- explained above); next, calculate the ideal cost based on ac5 ing staff3accordingly. 4 2 1 POS product mix reports. 34 33 32 31 30 29 22 21 tual menu sales mix from yourquantity sold and total sales 20 19 18 17 This report should tell you the
a each menu item for given period. cost 28 Have managers carryandshift card with thelist of foreach13 12 and athe number of Simply list theitem. 27 26 25 24 a scheduled employees 23hours. One of 16 15 of14 menu item most sales for that effective tools in managing labor cost is the managers Then, multiply the cost times the number of sales to arrive 11 10 the 8 7 each item. Next, add the ideal cost for 22 21 20 19 18 is shift card. The typical design17 an 8.5-by-5.5-inch, pre- at 9 ideal cost for 6 printed heavy cardstock, with spaces for entering notes and all items to arrive at the total ideal food cost for the period. 5 4 3 2 your targeted cost with the actual cost for the a 16 of15 14 13 and their scheduled hours for that Now compare 1 list each employee 12 shift. The shift manager can carry it during the shift and refer to it often to see when employees should begin side work or cleanup or for cutting servers as business slows down. Employees are required to bring the printed time slips when

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period. The difference is the potential cost savings lost to overportioning, theft and waste. To learn more, visit Spot Food Cost Problems by Knowing Your Ideal Food Cost at www.restaurantowner.com/IdealCost.
www.RestaurantOwner.com

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Update 34 33 its tablethe surroundchips andyour menu. Whether ditures. The constantlosses. A proven method forhard to 32 31 30 29 cost of salsa, bread and but- spot when there are movement of cash makes it trackcondiments, 50 frying oil, 47 restaurant ter, or 49 48 every 46 45 has food products that ing cash on hand is to first never mix cash received from Of 28 make it26 25to 24 23 to specific menu items. Of- sales with your cash-on-hand fund. Another technique 27 difficult allocate cost ten called plate cost or surround cost, this needs to be con- is to maintain a constant cash supply-on-hand total that 44 43 42 41 40 to to meet 22 sideredvisit have accurate 17 cost expectations. To learn is large enough reconcilethe cash demands for making 21 20 19 18 menu more, 39 www.restaurantowner.com/SurroundCost. change. Third, all cash-on-hand funds for 40 38 37 36 35 50 each cash drawer,46 45 fund and petty cash fund at 49 48 47 change 16 15 Preportion menu item ingredients. Most restaurant the end of every shift and have incoming and outgoing 14 13 12 34 kitchens are 31 30 29 33 32 fast-paced, high-intensity production managers sign off on them. 11 lines struggling to serve 6 many guests as possible in 44 43 42 41 40 10 9 8 7 as a short time span. Preportioning 23 only essential to this 28 27 26 25 24 is not 46 process 3 is2also necessary to control costs and stick 40 39 Conduct periodiccommon cash audits on cashiers. 38 37 36 surprise ways for cashiers (and, 35 5 45 but 4 1 to One of the most of course, bartenders) to earn extra money on the side 22 21 20 19 40 predetermined recipes. 18 17 34 is33 build the till. Its29simple process of placing all to 32 31 30 a receive 16 Use recipe quick-reference on the kitchen line. the cash they25 the from customers exactly where its 15 14 13 12 36 35 The first thing most cooks learn is to memorize the supposed to go, in 24 cash drawer. However, every fifth 28 27 26 23 proper method for cooking a given menu item. However, soft drink or small order of fries isnt rung up or rung up 11 30 large menus oftentimes have very similar ingredients and at21lower price. The customer, however, is still charged 29 10 9 8 7 6 22 a 20 19 18 17 portions and it can be easy for cooks to confuse them. One full price for everything. This means more cash is go5 3 1 24 method 4charts at each station. Thistochart contains aquick- ing into14 cash register.than the so often of sales getting 23 for ensuring2consistency is display recipe list of rung up the the drawer Every amount during a shift 16 15 on 13 12 reference 47 the ingredients and portions for each menu item so cooks (on a surprise basis) pull a cashiers or bartenders cash 46 45 18 can quickly verify correct recipe portions. To learn more, drawer (swap 8 out 7 a6different one) and take a regis17 11 10 9 it with ter reading, which will tell you how much cash should 41 visit www.restaurantowner.com/RecipeReference. in 5 be4 the3drawer. Count the actual cash in the drawer and 2 1 12 40 Use an order guide. An order guide is a set of forms if you come up with a cash overage, you either have a 37 36 that contain a listing of all the products a restau- problem with incompetence or someones cheating. Usu7 6 35 rant uses. It is usually divided into separate sections such ally the latter. 50 49 48 47 31 as meat, produce, cleaning supplies and paper. The order 46 45 1 30 29 guide form is used as a tool for counting and tracking all Establish daily prep level pars. To control fresh44 43 42 41 40 ness, waste and spoilage, you need to know the the products that your restaurant uses and must reorder. The 25 most effective order guides include as much order history as amount of food to prepare for each shift based on antici24 23 40 39 38 37 36 35 19 the form will allow. By seeing historical product usage,opti- pated sales. Kitchen managers and chefs who shoot from 18adjust your pars as needed and keep inventory at you the hip when it comes to deciding how much and what 17 can To more, visit end up shooting you in 34 Avoid 32 31 30 29 33 48 mumoflevels.45 learn an EffectiveHow toGuide Running needs to be prepared oftentimeshand results in nibbling, 47 Product 13 Out 46 With 12 Order at www. the foot. Too much product on 42 restaurantowner.com/orderguide. 28 27 26 25 waste and spoilage. Too little resultsturn runningthe oc24 supply on the line, which in in means out of 8 41 40 7 6 needed23 38 37 Maintainsales. First and foremost, restrict and void casional comp tore-evaluatingtopar levels for establishing 36 35 accountability for voids, comps the dis- and constantly make it up the guest. By all prepped 22 21 20 19 18 17 2 1 counted and discount functions to managers only. However, you items, you help to reduce excessive waste. To learn more, 32 must also have a system to hold managers accountable to visit How to Profit From Proper Prep Work at www.res31 30 29 16 15 14 13 12 maintain documented reasons for voids and discounts. taurantowner.com/prep. 50 49 48 47 46 45 them accountable helps to reduce the 11 10 9 8 6 26 Holding using the void function to pocket cash likelihood 7 Track shrink and waste on in-house cut fish and 25 24 23 of them sales. Un5 44 43 42 41 40 2 20 fortunately, manager theft is POS totals. The4onlybecause waste steaks and roasted or smoked meats. Shrinkage, 19 control17 have over often never caught 3 to 1 and trim are significant factors that can hurt your 18 they of the way 49 combat47 46to make them accountable for the 39 38 bottom36 35you cut your own steaks, seafood or poul48 this is 45 40 number 37 line. If 14 42 12 comps. voids and try, or offer cooked meats such as prime rib, smoked 43 of13 41 40 34 33 32 brisket,30 29 beef or pulled pork, then it is a cer31 ribs, roast 9 8 Reconcile cash on hand every shift. Restaurants tainty that the true cost per pound of the finished product 7 6 39 38 not only handle many cash transactions, they also will be24 23 greater than the original purchase 37 36 35 27 26 25 significantly on 3 must keep a significant amount of cash 28 hand for price. To learn more, visit www.restaurantowner.com/ 2 1 cash expen33 making31 30 paying tip floats and petty22 21 20 Yieldcalculator. 32 change, 29 19 18 17 27 26 25 24 23 16 15 14 13 12
GOOD RESTAURATEURS ARE ALWAYS LEARNING

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tomers served for every hour of labor expended. Sales per labor hour (S/LH) or customers served per labor hour (C/LH) are a key indicator of productivity. When sales or customer counts are too low this indicates possible scheduling or shift management problems. Likewise, too many customers or too high of sales per each labor hour expended could reveal understaffing problems resulting in poor customer service. Finding the optimum levels for your unique restaurant and meal periods ensures maximum productivity.

Know the optimum sales and number of customSchedule prep for offpeak meal periods. Control50 49 48 47 45 44 43 42 ers served per labor hour for each day part. If you 46 ling minimum staffing levels during offpeak meal 41 40 are using a POS system to maintain time and attendance periods is difficult because you never know when a bus40 39 of your37 36 35 may already have a built-in42 41 load of tourists or a rush of afternoon diners from a con38 staff, then you 44 43 secret 40 weapon for controlling labor costs. Most systems include vention PR show decide to pop in. Rather than schedulgenerated or 37 36 35 34 33 reports31 30 the amount of sales40 39 38cus- ing prep before you open, consider doing the majority of 32 showing 29

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it during open hours and offpeak times. That way if you do suddenly get an unexpected rush youll have enough bodies to meet the demand.

28 27 26 25 24 Cross-train kitchen line cooks, bartenders and 23 50 49 48 47 servers. One of the great mistakes many opera46 45 22 21 20 19 tors make is to rely on certain skilled staff members as 18 17 16 15 14 13 12 44 43 42 the only one who can do a certain job. By cross-training 41 40 11 10 9 8 7 6 16 15 14 13 some ofreducestaffnumber of to do multiple jobs it allows 12 your the to be able staff scheduled, especially 40 39 38 you to 36 35 37 50 49 48 47 46 45 the kitchen line. to supplement 5 4 3 Use compulsory cash drawers. 11 10 the9most8 for7employees hours It also allows you to work where 2 1 6 One of an by allowing them 32 31 rather 44 43 common methods for controlling 34 33that needed 30 29 finding a few extra hours to make 42 41 40 5 cash closing2 them happy. than 4 at 3 1 cash register is to only allow the opening and 40 of the 38 37 36by 35 a sale or pressing the 25 24 23 39 cash drawer ringing 28 27 26 No Sale key, both of which provide an audit trail. Maintain at least one-third of your staff as partfunc34 Some registers feature 29 33 32 31 30 compulsory cash drawer21 49 48 time employees. Retail businesses, including and 22 50 20 19 47 46 45 18 17 tionality, which means the next sale cannot be rang in particularly restaurants, simply cannot give every 16 44 43 42 12 40 15 14 13 a 28 until have cash drawer many cashclosed. However, you worker 4140-hour workweek.workers businesses rely on 27 the noticed 24 has been drawers are attached the availability of part-time Retail so that peak peri26 25 that 23 may to your POS system via the guest check printer rather ods can have36 35 staffing while allowing for staff 11 40 39 38 37 maximum 10 9 8 7 6 22 21 20 19 18 17 16 11 5 5 34 33 32 31 30 29 4 3 2 1 15 14 13 12 28 27 26 25 24 23 10 9 8 7 6 50 49 48 47 46 45 22 21 20 19 18 17 4 3 2 1 Use a customer display at cash registers. Custom50 48 frying oil 45 serve a lot fry oil week 44 er displays are used to show the price of each item 49 Filter 47 46 every shift. Changeof fried week43 42 41 40 ly. For 12 items 16 15 14 13 restaurants that being rung and the total of the bill. Many customers will such as seafood, french fries or appetizers, keeping oil 40 39 38 and 36 35 44 43 42 41 only enhances the flavor of watch this process37 ultimately challenge any discrep- clean and fresh not 6 11your but also8prolongs 40 useful life and thereforethe food, 10 9 7 the ancies, providing a built-in safeguard for keeping helps in cashiers honest. One of 30 easiest ways for bartenders controlling the cost. Considering the average fryer holds 40 39 38 37 36 35 34 33 32 31 the 29 5 4 3 2 1
or cashiers to steal from you is to under-ring the sale in the cash register while still charging the customer the full amount. When there is not a visible display showing the amount of the sale, then the customer has no way to challenge the amount being charged, thus making it appealing for dishonest cashiers. than directly through the workstation. While this is not always the case, for many POS systems it is not possible to have drawer compulsion functionality when connected in this manner, meaning that a dishonest cashier or bartender could simply leave the drawer ajar to facilitate unrecorded cash sales. levels to be reduced as demand wanes. Having additional staff to take up the slack when full-time workers are absent or approaching overtime is also a great way to avoid excessive overtime. Most restaurants find that having at least one-third to one-half of their staff as part-timers helps in achieving comfortable yet affordable staffing.

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anywhere from 35 to 50 pounds of oil, costing anywhere from $20 to $50 to fill each fryer, having a daily filtering routine can save big bucks.

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28 27 Turn off unneeded burners, fryers or ovens dur26 25 24 23 50 ing offpeak 47 46 often overlooked opportunity 49 48 time. An 45 22 for cost20 19 is18 17costs. Unneeded gas or elec21 savings utility 16 15 14 13 12 44 43 exhaust 40 Never allow more than one person to access a cash tric burners, 42 41hoods, steamers and ovens can use 46 45 drawer.9One 8 the7 6 things to detect is when thousands of dollars in wasted energy each year. Add to of hardest 11 10 16 15 14 13 electricity 12 someone is stealing cash when multiple people have ac- that the additional 37 36 or gas for heating and cool40 39 38 35 40 cess to a4given cash2drawer, a common practice in quick-11 ing unused dining 7 6 Utility costs typically range rooms. 5 and limited-service1restaurants or bars. Many op- anywhere from 2.5 to 4.5 percent of overall sales. Incor3 10 9 8 serve 34 33the 32 31 30 29 and use of equipment 36 erators defend this practice by saying they cannot afford5 porating3 temperature setting 35 4 2 1 or do not have the space to provide a cash register for into opening, shift change and closing procedures can 28 27 26 cost savings. RS&G produce significant25 24 23 30 each cashier needing access. 29 22 21 20 19 18 17 16 15 14 13 12
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