| By kp3868 on Saturday, October 14, 2000 - 01:29 pm: Edit |
I am interested in hearing from folks who have
been successful in or are concerned about how
to lower overall cost of goods in foodservice
operations.
Bottom line is, we work for money. What can
we do to make/keep more of revenue that hits
our books?
| By Panini (Panini) on Saturday, October 14, 2000 - 08:15 pm: Edit |
KP3868,
Are you looking to lower your COGS, or lower all expenses and find ways to add to the bottom line?
We will need to know a little more about you venue.
| By chris on Saturday, October 14, 2000 - 09:41 pm: Edit |
lowering cogs is a double edge sword. On the one hand you are putting more toward your bottom line. On the other hand you might be doing it at your customers expense in which case they might decide to dine elsewhere. This may sound stupid but I increased my bottom line last year by taking my food costs from 28% to 36%. My customers noticed the difference in quality from the past exec chef and started coming in more frequently, with friends. I"m not making as much per plate but I'm doing a hell of a lot more plates and I'm seeing it at the bottom line. That's just my 2 cents though, good luck.
| By Cheftim (Cheftim) on Sunday, October 15, 2000 - 01:52 pm: Edit |
Over three years ago I worked for a hotel company were the only consideration was the bottom line. I kept labor and food cost low with minimum complaints. That was how I was judged and they were ecstatic. The hotel company leased out the banquet operation. The New owners first question was "could I raise the food cost from 18% to 22%."
So we improved our product across the menu and now after three years business has doubled, with an increase in prices the margin hasn't increased but the dollar per person has.
So what am I getting at? The bean counters in the hotel couldn't see past their spread sheet. I Knew that. All they wanted was for the numbers to balance at the bottom of the page. Playing only the percentages is short sighted, you have to take into account everything. By balancing quality and price and then exceeding the customers expectation is the real wining scenario.
| By Mofo1 (Mofo1) on Sunday, October 15, 2000 - 10:59 pm: Edit |
You had 18% food cost?!! My God, what were you serving. Floor sweepings?
| By Donna (Donna) on Monday, October 16, 2000 - 05:27 pm: Edit |
I work on a 30% f/c
Cut somewhere else
by the way, what do u serve