I’m sure all restaurant consultants and accountants advise their clients to count inventory regularly. Depending on how many menu items and ingredients in use, and how many times you count inventory, this simple procedure can represent a very significant time commitment. Let’s take a closer look at inventory counts and see whether they’re worth the time and effort.
Continue reading “Counting Inventory a Waste of Time?”
I’ve been scouring the net for useful information on a variety of topics related to restaurant cost control. I have to tell you that it is a pretty discouraging task. The vast majority of the web sites and blogs offer very little useful information for a restaurateur who wants to manage his or her operations better. Many blog articles are far too simplistic to be of any use. It is a waste of time reading (or even scanning them)! Others offer a huge number of articles, videos and templates, but usually require you to sign up as a “member” (i.e. customer). A quick review of their offerings suggest that you are not likely to get your money’s worth. A few sites offer advice that is, well, wrong. I hope to correct this deficiency, with an ongoing series of blog entries on this site. In the mean time, you might consider Joe Dunbar’s blog, Food Cost Control. Joe’s blog is one of the best I’ve come across so far. Maybe I have a soft spot for his site, because he’s so analytical!
Today’s topic is restaurant costs.
Continue reading “Restaurant Cost Percentages”
Wine inventory is different from food inventory in one very important aspect. Wine turns over a lot slower than food. In other words, it stays on the shelf longer. While food must be sold quickly, or it perishes, wine often improves with age.
The size and composition of a wine list depends on the type and style of restaurant. Higher priced, fine dining restaurants tend to have larger wine lists and include higher priced wines, while casual dining restaurants feature a smaller selection of reasonably priced labels that appeal to a larger audience.
We usually categorize wines by varietals, countries and price, and often show the wines by-the-glass separately. This is helpful for the customer trying to make a selection, but it is much less useful to the owner/manager. There are at least four different categories of wine, and each has its own unique profit profile and implications for analyzing costs.
Continue reading “Wine Cost Control”