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Wednesday, August 31, 2011

Food Cost Control Framework Part 2

The table below recaps the information required for all items with an Impact rating of A (A, B, C scale).  At the bare minimum, you will want to know the correct specifications.  The table can also include multiple purchasing specifications if you use more than one supplier.  Some suppliers sell meat by the box with the weights written on the side.  Other suppliers sell by the piece with the weights on the packages.  It is very important to understand your options and then make an effort to restrict your purchases on these key items.

You won't want the specifications to be loose since these items (by their nature) have a very big impact on your food cost results.

The consistency issue is number one with regard to your key items.  Your customers make the trip to your restaurant specifically to order these popular items.  They expect a consistent portion size and quality level.  You can't expect a highly consistent end product if you buy different quality or specification each time you order.

The portion size information will help you forecast the number of cases or boxes to purchases.  I have seen certain pieces of meat used to cut steaks with a high yield variance.  In one example, the yield was 62% for the high and 54% for the low.  The average yield was 60%.  If you receive an entire box of meat with a low yield, you could require an extra piece of meat.  This is rare but possible.  Definitely mention the poor yield results to your supplier.  You may be entitled to a credit.

We will be exploring the purchasing model in the Part 3 section.

1 comment:

RSB said...

Hi Joe,

I own a fast food restaurant in New Zealand, Our food cost is consistently below 26%; however I have a question, does food packaging fall under food cost or operational expence??

Thanks a ton


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