Food costs… it’s one of the Big 3.
And that means it’s really important that you get it right.
As a restaurant, 1/3 of your budget goes to food costs… and by default that makes it a big ticket item in your budget, but it’s more than that… it can also be a business killer if you don’t manage it closely.
Failure.
Yeah, it’s pretty common in the restaurant business.
We all know the damaging stats… 60% of restaurants fail their first year and 80% fail after 4 years.
But you’ve survived… and maybe even thrived.
And you want to keep it that way.
So how do you avoid the pitfalls the vast majority of restaurants make that doom them to fail?
Well, we’ve got you covered.
We stand by our claim… Recipe costing isn’t all it’s cracked up to be.
Now, before every restaurant consultant in the land spews hate in the comments section, let’s take a step back.
Of course, recipe plate costing can help drive the profitability in your menu.
It’s what helps you create a dish that is not just culinary genius, but also financially delightful. In simple terms, recipe plate costing is about running a profitable restaurant.
But, that’s not the usual conversation we have when people talk about plate costing. More often, there are complex systems and models involved.
The magic of running a restaurant comes in that moment when everything works together… the menu, the staff, the customers.
But more often than not, that really is just a moment.
The rest of the time?
There aren’t enough tortillas for Taco Tuesday…
The ice machine stopped working…
And your top 3 servers have just called out…
I mean, let’s face it… running a restaurant is more organized chaos than a well-oiled machine.
It can seem like there are so many factors beyond your control when it comes to keeping the doors open.
So how does a restaurant manager maintain some sense of order (and sanity)?
The answer is in your Prime Cost.
When’s the last time you pulled into a gas station to buy a paper map to find that shortcut to the beach?
Or went to the video store to get your VHS stack for the weekend?
Or stood out in the blazing sun pumping quarters in a pay phone to tell your boss you’ll be late?
Yeah. Times have changed.
Kontabilitetit. Uhasibu. Redovisning. Comptabilite. Apskaita.
As hard as these words are to understand, the concept they all translate to can be even harder to grasp…
We’re talking about accounting.
YOUR 5-STEP FOOLPROOF GUIDE FOR TAKING RESTAURANT INVENTORY
You don’t have to be a rocket scientist to run a restaurant.
But sometimes it can feel that way.
There are so many processes and tasks to keep track of… scheduling shifts, ordering food, prepping for service, signing off on invoices, training staff… the list seems never-ending.
Recipe costing… it’s a little like a Tinder date.
Sure, she looks great in the photo. But when she shows up to the restaurant… well, let’s just say she’s not what you expected.
How does getting catfished by your online date relate to recipe costing?
You think calculating the price of each dish is going to get you a big, beautiful profits statement that will be the magic formula for running your restaurant.
But what you get is the opposite…
If someone came into your restaurant and took cash out of the drawer, would you take action?
Of course. That’s your money!
Well, if you’re still using restaurant inventory spreadsheets instead of food costing software, you’re actually stealing from yourself.
“What’s the problem with spreadsheets?” you ask.
How do you know your restaurant’s doing well?
You’ve got a waitlist every night…
People leave GOOD reviews on Yelp…
Your staff seems happy…
Yes, these are all reasons why you may think you’re running a healthy business. The problem is… they don’t necessarily mean profits are up.
