50 Ways to Cut Costs Without Reducing the Guest Experience
<|!--Begin Body Text--|>
Growing sales, while an essential goal of all businesses, is NOT the surest way to make an immediate impact on profitability -- but controlling your expenses is.
A restaurant doing $100,000 in sales with a net Income of 5% would need a minimum sales increase of 15% or more to double the bottom-line profit. In addition to an increase in food, beverage and other variable costs, generating more sales typically requires additional marketing expense, oftentimes accompanied by some type of promotional discounting or coupons.
For virtually all restaurants, the most effective way to boost profitability quickly and permanently is not by putting a hard push on sales but by limiting the drag of expenses.
Over the past 25 plus years, we've worked with literally hundreds of independent restaurants and 99% of them were easily wasting 5% to 10% of sales by failing to follow industry best practices. In addition to having services or products for which they either paid too much for, wasted too much of, or simply didn't need -- many were simply guilty of not following good restaurant management fundamentals.
While there probably isn't any single expenditure that could be trimmed enough to produce an immediate doubling of your profits, the cumulative effect of reducing expenses in multiple areas of your business could absolutely improve the bottom-line. Consider this, if a restaurant doing $100,000 in sales could reduce their cost of sales by say 2-3%, their labor by 2-3% or other expenses by 2-3% they could easily double or even triple their current bottom-line.
For instance, when's the last time you renegotiated your trash pickup service? One operator told us he was able to save more than $300 per month by getting a bigger container and fewer pickups per week.
Another operator found significant savings simply by changing a key ingredient in one of their most popular menu items -- a change that had absolutely no impact on the quality or flavor of the dish.
Yet another restaurant owner was able to significantly reduce serviceware costs by rearranging the dish landing areas, adding steps to prevent breakage and holding staff accountable for broken or missing glasses, plates or flatware.
There are literally hundreds of great ways for reducing costs. We'd like to give you an early Christmas present by sharing some of them with you. Simply click on the link below to get your copy of 50 Ways to Cut Costs without Reducing Quality.
http://www.restaurantowner.com/50ways
These simple, yet highly effective ways to evaluate your costs and review your systems is the easiest and surest way to double your profit in 2016.
If you enjoyed this Profit Tip, please share it on Facebook.
<|!--End Body Text--|> <|!--Horizontal Rule: defines new cell in table--|>
<|!--Horizontal Rule: defines new cell in table--|> <|!--Begin Site Reference 1--|>
ARTICLE: Measurable Improvement: A Three-Phase Approach to Increasing Profits With Food Cost Control Systems
You absolutely must have systems in place for every phase of your operation. In this article we'll discuss the systems and controls necessary for controlling food and beverage cost, many of which are used by the big chain operators. Used regularly, these systems will help you recognize and reduce your overall food and beverage cost.
<|!--End Site Reference 1--|> <|!--Horizontal Rule: defines new cell in table--|>
<|!--Horizontal Rule: defines new cell in table--|> <|!--Begin Site Reference 2--|>
DOWNLOAD: Daily Prep Sheet
Preparing the proper quantity of food products is a critical function in any kitchen. Prep too much & you have spoilage & waste. Don't make enough and you lose sales opportunities and disappoint your guests. This tool will help your people plan and control production of your food products.
<|!--End Site Reference 2--|> <|!--Horizontal Rule: defines new cell in table--|>
<|!--Horizontal Rule: defines new cell in table--|> <|!--Begin Site Reference 3--|>
WEBCAST: Essential Food Cost Controls for Independent Restaurants
In this comprehensive 2-part program, you and your entire staff can learn how to "significantly" improve the management and control of your entire food production process from purchasing, receiving, storage, preparation to settlement.
<|!--End Site Reference 3--|> <|!--Horizontal Rule: defines new cell in table--|>
<|!--Horizontal Rule: defines new cell in table--|> <|!--Quote Image--|>
<|!--Quote Image--|>
<|!--Quote Text--|>
The way to build your savings is by spending less each month."
-- Suze Orman
<|!--Quote Text--|> <|!--Horizontal Rule: defines new cell in table--|> <|!--Begin Signature--|>
Have a profitable week!
Jim Laube & Joe Erickson
If you're wondering what it's like to be a RestaurantOwner.com member, see what our members are saying...
http://www.restaurantowner.com/member-comments.htm
<|!--End Signature--|> <|!--Begin Copyright--|>
Growing sales, while an essential goal of all businesses, is NOT the surest way to make an immediate impact on profitability -- but controlling your expenses is.
A restaurant doing $100,000 in sales with a net Income of 5% would need a minimum sales increase of 15% or more to double the bottom-line profit. In addition to an increase in food, beverage and other variable costs, generating more sales typically requires additional marketing expense, oftentimes accompanied by some type of promotional discounting or coupons.
For virtually all restaurants, the most effective way to boost profitability quickly and permanently is not by putting a hard push on sales but by limiting the drag of expenses.
Over the past 25 plus years, we've worked with literally hundreds of independent restaurants and 99% of them were easily wasting 5% to 10% of sales by failing to follow industry best practices. In addition to having services or products for which they either paid too much for, wasted too much of, or simply didn't need -- many were simply guilty of not following good restaurant management fundamentals.
While there probably isn't any single expenditure that could be trimmed enough to produce an immediate doubling of your profits, the cumulative effect of reducing expenses in multiple areas of your business could absolutely improve the bottom-line. Consider this, if a restaurant doing $100,000 in sales could reduce their cost of sales by say 2-3%, their labor by 2-3% or other expenses by 2-3% they could easily double or even triple their current bottom-line.
For instance, when's the last time you renegotiated your trash pickup service? One operator told us he was able to save more than $300 per month by getting a bigger container and fewer pickups per week.
Another operator found significant savings simply by changing a key ingredient in one of their most popular menu items -- a change that had absolutely no impact on the quality or flavor of the dish.
Yet another restaurant owner was able to significantly reduce serviceware costs by rearranging the dish landing areas, adding steps to prevent breakage and holding staff accountable for broken or missing glasses, plates or flatware.
There are literally hundreds of great ways for reducing costs. We'd like to give you an early Christmas present by sharing some of them with you. Simply click on the link below to get your copy of 50 Ways to Cut Costs without Reducing Quality.
http://www.restaurantowner.com/50ways
These simple, yet highly effective ways to evaluate your costs and review your systems is the easiest and surest way to double your profit in 2016.
If you enjoyed this Profit Tip, please share it on Facebook.
<|!--End Body Text--|> <|!--Horizontal Rule: defines new cell in table--|>
<|!--Horizontal Rule: defines new cell in table--|> <|!--Begin Site Reference 1--|>
ARTICLE: Measurable Improvement: A Three-Phase Approach to Increasing Profits With Food Cost Control Systems
You absolutely must have systems in place for every phase of your operation. In this article we'll discuss the systems and controls necessary for controlling food and beverage cost, many of which are used by the big chain operators. Used regularly, these systems will help you recognize and reduce your overall food and beverage cost.
<|!--End Site Reference 1--|> <|!--Horizontal Rule: defines new cell in table--|>
<|!--Horizontal Rule: defines new cell in table--|> <|!--Begin Site Reference 2--|>
DOWNLOAD: Daily Prep Sheet
Preparing the proper quantity of food products is a critical function in any kitchen. Prep too much & you have spoilage & waste. Don't make enough and you lose sales opportunities and disappoint your guests. This tool will help your people plan and control production of your food products.
<|!--End Site Reference 2--|> <|!--Horizontal Rule: defines new cell in table--|>
<|!--Horizontal Rule: defines new cell in table--|> <|!--Begin Site Reference 3--|>
WEBCAST: Essential Food Cost Controls for Independent Restaurants
In this comprehensive 2-part program, you and your entire staff can learn how to "significantly" improve the management and control of your entire food production process from purchasing, receiving, storage, preparation to settlement.
<|!--End Site Reference 3--|> <|!--Horizontal Rule: defines new cell in table--|>
<|!--Horizontal Rule: defines new cell in table--|> <|!--Quote Image--|>
<|!--Quote Image--|>
<|!--Quote Text--|>
The way to build your savings is by spending less each month."
-- Suze Orman
<|!--Quote Text--|> <|!--Horizontal Rule: defines new cell in table--|> <|!--Begin Signature--|>
Have a profitable week!
Jim Laube & Joe Erickson
If you're wondering what it's like to be a RestaurantOwner.com member, see what our members are saying...
http://www.restaurantowner.com/member-comments.htm
<|!--End Signature--|> <|!--Begin Copyright--|>
|
©2015 RestaurantOwner.com |
Reproduction without permission is prohibited. |