Week 44 Day 3 Action Items

Day 3

• [ ] Evaluate cost control methods: ingredient sourcing, menu engineering, waste reduction, etc.
• [ ] Assess your current cost control strategies for effectiveness.

Cost Control Methods

Here are some examples of cost control methods that restaurant and food service businesses can implement:

1. Menu Engineering:
   • [ ] Analyze the profitability of menu items by comparing their sales prices to the cost of ingredients.
   • [ ] Identify high-margin items and promote them to increase profitability.
   • [ ] Consider removing or re-pricing low-margin items to improve overall profitability.
2. Inventory Management:
   • [ ] Implement inventory tracking systems to monitor stock levels and prevent waste.
   • [ ] Set par levels for ingredients and supplies to avoid overstocking or stockouts.
   • [ ] Conduct regular inventory audits to identify discrepancies and minimize shrinkage.
3. Supplier Negotiation:
   • [ ] Negotiate favorable terms with suppliers to lower ingredient costs.
   • [ ] Explore discounts for bulk purchases or long-term contracts with reliable suppliers.
   • [ ] Compare prices from multiple suppliers to ensure competitive pricing.
4. Waste Reduction:
   • [ ] Minimize food waste by accurately portioning ingredients and controlling portion sizes.
   • [ ] Train staff on proper food handling and storage practices to prevent spoilage.
   • [ ] Repurpose leftover ingredients whenever possible to reduce waste and improve profitability.
5. Labor Management:
   • [ ] Optimize staffing levels based on forecasted demand to avoid overstaffing or understaffing.
   • [ ] Cross-train employees to perform multiple roles and tasks, improving flexibility and efficiency.
   • [ ] Monitor labor costs and schedule shifts strategically to minimize overtime expenses.
6. Energy Efficiency:
   • [ ] Invest in energy-efficient appliances and equipment to reduce utility costs.
   • [ ] Implement energy-saving practices such as turning off unused equipment and lighting.
   • [ ] Regularly maintain equipment to ensure optimal performance and energy efficiency.
7. Promotions and Specials:
   • [ ] Offer promotions and specials during off-peak hours to attract customers and increase sales.
   • [ ] Utilize seasonal ingredients or surplus inventory to create cost-effective specials.
   • [ ] Analyze the impact of promotions on sales and profitability to inform future marketing strategies.
8. Technology Integration:
   • [ ] Implement point-of-sale (POS) systems to track sales data and analyze performance trends.
   • [ ] Utilize restaurant management software to streamline operations, track inventory, and manage finances.
   • [ ] Leverage online ordering and delivery platforms to expand reach and increase revenue opportunities.

Reflection Questions: Which cost control methods would apply to your business?

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