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Showing posts with label catering. Show all posts
Showing posts with label catering. Show all posts

Friday, October 30, 2009

Beverage Included Buffets

The lowest priced lunch buffet we visited on our tour was $6.95. This operator serves both BBQ pork (whole hog) and fried chicken with lots of sides and desserts. Drinks are not included and sweet tea is sold for $1.19 (unlimited). A quick look around the dining room showed about 75% of patrons enjoying a tea and the others ordering tap water (free).

There were a few competitors offering similar food choices for $7.45 with beverage included with the meal. On average, the $6.95 buffet plus beverage accounts for $7.85 in revenue and an extra $0.40 in gross margin.

For out-of-town guests, the big $6.95 sign beckons. By the time they see the buffet layout and are warmly greeted by the hostess, they will probably never ask about the extra charge for the tea.

I spoke with one of the general managers at the all-inclusive buffet. He told me most of his business is local and everyone wants the tea. They have offered the buffet with tea for decades. He believes the locals are aware of the real price for the buffet with tea at the $6.95 location. I'm sure he is correct.

Both restaurants were very busy in the middle of the week.

Sunday, October 25, 2009

All You Can Eat Buffets

We have all tried an all you can eat buffet. Whether you are in Las Vegas, a local hotel for Sunday Brunch, a Chinese restaurant or a buffet specialist, the format is the same. You are seated and asked for your drink order. Once the order is taken, you are invited to go ahead to the buffet.

Most buffets are setup in stations. Typically, there is one or more ethnic food stations (Italian, Mexican and Chinese are common), a roast meat station, seafood station, BBQ station, a large salad bar and a dessert station. Breakfast and brunch buffets will include an omelet station (with lots of toppings), breakfast meats, pancakes, waffles, bagels, toast, muffins, fresh fruit, smoked salmon, and cereals.

Operators who pay attention to baked goods have an edge since these items have a relatively low food cost. It is advisable to have a server help guests with the roast meats. Most buffet houses continually pick up plates when the guests leave the table for seconds.

Buffet operations require high fixed costs. Much of the food and production staffing is decided before the meal period. Operators need accurate forecasts to prevent costly over production.

There are two schools on how to close down a buffet. Some professionals believe the buffet should look fully stocked right up until the final guest is served. Other operators prefer to offer fewer pans as the clock nears closing time. You need to have a strategy for either philosophy. The worst buffet presentations are those where you see many pans with very little food and drying sauces and gravies.

At the very least, these pans should be removed or replenished (depending on the policy). I have requested a tour of the buffet before deciding to dine on occasion. About 1/3 of the time, I decide to leave due to the appearance of the food.

Sunday, July 27, 2008

Make Room For Special Events

Eliminating the uncertainty of a covers forecast is helpful for everyone in restaurant management. Restaurants with a line around the block estimate with confidence their cover count on a busy night. They are less likely to over staff or miss their production requirements. The long line insures they will hit the maximum cover count.

On the other hand, operators with spotty dining room counts and no line wrapped around the building experience major forecast errors. Management typically over staffs and over produces prior to the shift. Employees know the drill. They report for work expecting an early night. They can call friends on their cell phone if they get a surprise. How long would you stay at a job if you had no way to predict your weekly income level? Certainly, these operations experience tremendous turnover.

One way to help with the forecast certainty is to include a few catered affairs at your restaurant. Caterers have contracted guest counts. They staff for a specific party size. The guests choose their menu selections prior to the event. No over staffing and demoralizing early shift exits occur for these events. The food production exactly meets the contract. Huge advantage!

If you do not have a separate party room or conference salon, consider the investment. Many of my clients receive over 50% of annual revenue from special event orders. The impact on income is quite favorable. You can groom new wait staff at these events. Since the guests have already made their menu choices, timing is easier and the staff is more focused on quality control issues.

Ordering food is greatly simplified. The chef knows exactly how much food to prepare and a very small safety factor is required. You may even be able to include some chef specials in the event offerings. These specials allow some creativity and the ability to use in season ingredients.

Wednesday, July 09, 2008

Profitable Special Events

One hint I have shared with my special event catering clients is the use of cost per guest statistics (vs. a % of sales). Catering is a very different business. Using restaurant metrics is a mistake. Contract caterers say: "We take dollars to the bank not percentages."

Since the caterer's guests often buy a complete package, it is helpful to detail the list of offerings and services provided and cost each one. Many of the line items are straightforward. You can use your previous cost data to fill in the blanks. The key to success is an accurate account of paid guests (or covers).


We'll take a look at a sample company's budget process. The left hand side is the current results and the right hand side assumes we raise the price per guest $5. I use both Per Guest and % of Sales statistics. You need to use the contracted guest count since the final counts are often lower (due to no-shows). Since the fixed costs are covered by revenue per contracted guest, this is a better divisor. Many caterers expect a lower count and prepare less food. Other companies prepare enough food for 100% attendance.



(Note: Click on image to expand the size.)

The use of cost data per guest makes sensitivity analysis (what if?) easier to present to your management team. Each line item may be changed to see the impact on profit. In the example above, I assumed costs would remain constant and the entire $5 increase would make it to the bank.

Tuesday, April 17, 2007

Great Night For A Buffet

One sure way to experience a higher food cost percentage is to substitute an all you can eat buffet in lieu of your a la carte menu on your busiest night of the week. Batch production and preliminary forecast data will set a ceiling on the quantity and cost of production. Service labor is typically lower on buffet service. Most likely, the buffet is priced well above your average dinner entree.

Is this a smart move?

I do not recommend allowing customers to determine portion size. You can help by having manned carving stations. Although you will see a better food cost percentage, you lose some of the service labor savings.

Does the higher buffet price make up for the greater food consumption associated with the buffet service style? I believe the higher prices encourage customers to overload their plates. Your patrons are aware of the menu structure. They will calculate the utility in selecting the buffet and make the decision based on appetite.

Years ago, I was at a training seminar for statistical sampling techniques. In the early evening, a classmate asked "where's a good place to eat around here?" and very few people responded. Finally, a friend suggested an excellent Italian restaurant with a Wednesday night only buffet. He said he heard about it from his cousin who lived in the area. It was a Wednesday. Four of us decided to join him at the buffet.

This restaurant offered both a la carte menu service and the buffet. Our waitress asked if we were ready to order. Everyone encouraged me to start first. I was a definite for the buffet from the moment I stepped inside. My friend stuck with his original plan and also ordered the buffet. The next person was dieting and she chose a chicken breast entree. The ordering dynamics changed and the last two people also selected from the a la carte menu. Both people ordered a pasta entree with a side of Italian sausage.

Our buffet was priced twice as high as the typical entree. We each enjoyed clams on the half shell, shrimp, baked lasagna, prime rib, salad and we picked up dessert for our still hungry mates. Everyone kept looking at our prime rib (a beauty) with envy.

This restaurant employed help to carve the rib and portion the stuffed pasta dishes. The portions were generous and the goal seemed to discourage patrons from going back to the self-serve shellfish selection and salad bar. Desserts were eye popping and our friends begged us to bring them each a slice of a decadent chocolate cake. Our dieter stuck with some fresh fruit.

Our fellow diners decided they would order the buffet if they came again including the dieter.

I am 100% sure the cost of the food we consumed exceeded the target food cost percentage. During the meal, I noticed most tables were filled with serious buffet lovers. Clearly, the wait staff was skeletal. They did pay for extra help to handle portion control at the carving station. Were they right in the decision to go buffet style? I believe they were doing well with the buffet strategy.

Since they used a sumptuous buffet with prime rib and a top notch seafood selection to fill seats on a Wednesday night, I liked the idea. A quick check of the other restaurant parking lots nearby showed the wisdom of the decision. Shift the same meal service to Friday or Saturday night and I'd be against the decision.


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Thursday, October 26, 2006

We Don't Know Our Costs

My boss at Sodexho always said "We don't know our costs." whenever the food cost percentage was too high. Generally, the remote site feeding business should be very predictable. Patrons live onsite and have zero options outside the dining room at the camp. If a room is occupied for a night, we'd expect the resident to show for breakfast, lunch and dinner. Straight forward revenue calculation involves the number of people in camp multiplied by the rate per person per day.

Problems in this business segment occur at mature projects after contract renewal. Since the competition is fierce, operators look for every possible advantage. When responding to the RFP, the bidders try to gain a cost advantage over their competitors.

If the camp is close to a urban area (close would typically mean a short flight), many of the residents leave on the weekend. Playing the game involves predicting the probability the Friday evening meal will NOT be attended. In addition, Sunday dinner attendees provide a full manday of revenue. Even weekend travelers provide an operator with revenue if they eat Sunday dinner (though no bed was made and breakfast and lunch were not consumed). Sounds like a bonus for the caterer.

Many times, the initial bid prices have this favorable activity built into the price matrix. Now the bonus turns into a risky game. Bad weather, overtime pay opportunities and special events may keep residents onsite over the weekend even though the prices reflect more checkouts.

Some of the best operators provide a fantastic Sunday night meal and advertise the menu during the week. All efforts are focused on a big turnout. When the residents do not leave as expected, Sunday costs per manday can be very high.

A few years ago, Darden's stock went lower due to a major turnout at their all-you-can-eat seafood buffets. Higher patron counts actually hurt their bottom line.

I have found many of my clients pushing menu items with ideal food cost percentages over 50% (some over 100%). It's tough to make a decent profit when you're not charging enough for your popular menu items. When my clients were wrong on the low side, they tended to be wrong on the most popular items. Savvy patrons recognize a value and order these lost leaders more frequently. Do you know your costs?

Wednesday, February 15, 2006

Profitable Breakfast Buffets

From a strict percentage perspective, breakfast buffets can improve results. Many business traveler hotel concepts offer breakfast buffets. Since morning guests are in a hurry, the buffets serve two purposes: fast service and selection.

If you reward your breakfast guests with a well planned buffet, they will tell others. As a frequent traveler, I compare notes with fellow road warriors when we meet.

It's completely possible to achieve a 25% food cost or lower with a quality, basic breakfast buffet at the $10 price point. You may want to add a few extra special items and charge $12. For the weekday client, this should be done carefully. Destination resorts can (and should) offer a higher quality breakfast buffet at a premium price.

The beauty of breakfast buffets lies in the probability of selection and the ability to offer a similar layout daily. The urgency factor may be used to promote lunch buffets in business districts. However, it's tough to offer the same entrees each day. Lunch customers want variety.


Dinner buffets are a gamble in most business districts. The expense account crowd is often out for steak or seafood. Breakfast buffets are less risky and can improve overall food cost percentage.

Tuesday, February 07, 2006

Profile 2-Short Buffet Lines

When I think of buffets, Las Vegas always comes to mind first. My early trips to the city were from Colorado and we would arrive after midnight in a van. Typically, we would checkin to the hotel and then hit one of the countless buffets available at all hours.

One common sight, regardless of the time, was a 3 to 5 minute line to access the buffet. The dining areas were not always packed but there were always lines to start. We never encountered a Las Vegas buffet with really long lines since we went at off-peak times. The service areas were always well stocked. Our food value was exceptional (sometimes incredible).

In contrast, I have been to countless poorly attended buffets in the real world. These buffet events have a common profile: a short line (or nonexistent), empty pans, cold food (when it should be hot) and a poorly managed dining room. It's difficult for me to pay for this type of food service. I always ask if it's possible to order a la carte. Unless there is nothing else for miles, I won't stay if the a la carte option is refused.

As I sit eating my burger or club sandwich, I will count the patrons. Then I take an inventory of the serving line and I estimate the entire cost. In many cases, I will have the time to place my order, receive my meal, finish and settle the check with very little replenishment activity on the buffet stations. If there has been replenishment, I add a guess to my overall estimate.

I would expect the operators will transfer untouched cold food into the walkin at the end of the buffet. Perhaps, they will store some pans from the hot line for the next day. I try to envision how much extra food will be prepared the next day given my observation. My goal is a two day total cost estimate.

For sales, I include the observed count plus an estimate of patrons served during my absence. I double this sum and multiply by the price per patron. The estimated cost is always over 50% of the estimated revenue.

After sitting in on many staff meetings at client offices, I pay strict attention to any discussion of buffets. There is a high correlation between bad food cost percentages and slow buffets.

If you don't expect a decent turnout on specific days, I'd suggest a la carte service only.

Wednesday, February 01, 2006

Buffets and POS Investment

One of the biggest selling items on many hotel, restaurant and club menus is Sunday Brunch. Often, the POS system will rank the brunch as the top item and it's common to see it garner a hefty percentage of total weekly sales. If your operation fits this profile, you need to take it farther.

Create a POS menu item for all buffet components. Setup every pan as a modifier menu item in the Sunday Brunch group on the POS. Instruct the dining room manager to ring up each pan sent to the buffet line at the start of brunch. As pans require replenishment, the manager should continue to ring them up on the POS. Make a policy of no pans leaving the kitchen unless the order prints on the POS printer.

Why bother with this level of control? Your food cost will improve. Fewer weekly cost variances will be blamed on the brunch consumption.

It's now possible to cost each pan and accurately calculate brunch buffet consumption. The total cost divided by brunch sales may be compared to your overall food cost percentage. Forecasts may be improved to include both cover count and pan count estimates. Spoilage will decline through careful study of the entire picture.

After several brunches have been analyzed, patterns will develop. These hidden patterns will provide profit improvement opportunities. You'll find certain buffet layouts produce better results.

Let's face it, there is a big investment in the POS system. Get a better return on that investment during your busy times.

Monday, January 02, 2006

Buffet Style Events

My corporate background includes a nine year stretch with Sodexho. My field work was at major construction projects, oil production facilities, Calgary Winter Olympics and the Alaska Railroad. We served hungry men over 5,000 calories a day. They worked in the freezing cold of Alaska, Alberta, British Columbia and Colorado.

Our sites served 3 to 4 buffets a day. We had very tight cost control due to the nature of the industry. Our contracts were won in competitive bidding wars against as many as 20 companies. Serving all-you-can-eat (AYCE) buffet style meals to voracious diners is half art and half science. In our company, I was the scientist. Most of our projects were staffed with marvelous artists. I can vividly remember their efforts during the holiday season each year.

The four key people in any successful high volume buffet production team are the chef, the baker, the butcher and the chef de garde manger. It is the job of the baker to make the patrons want dessert before they ever take their meal. To accomplish this task, we staged our buffets with the pastries first. The best bakers were showmen. They worked their magic every night with batters and pies and loaves of bread.

Most of the purchase dollar in our business was spent with purveyors of meat and seafood. Our best chefs worked closely with their butchers to optimize purchases based on market conditions. We served T-Bone Steak twice a week on every Canadian and Alaskan site. The butchers would buy a variety of cuts: sides, hinds, long loins and short loins. They looked at each cut as a source for steaks. They knew the percentage yields and the number of T-Bones from each cut. Depending on market prices, they bought enough steaks (through huge cuts) for the week and used the trim in stews and ground beef.

For this style operation, it is essential to have a completely separate refrigerated area for leftovers. Ideally, the bulk of the food left over may be served at the next meal period. The chef de garde manger sliced cold roasts for sandwiches, used leftover chicken in salad. Shrimp and crab was spread lightly over well presented pasta salads.

Every day, I watched the coming and going from this cooler. At a good site, there was never much food in this storage area. The same was true for bakery items. Each baker had his own use for the previous day's leftovers. Some liked bread pudding and others liked to use bran muffins.

Most of my buffet clients serve Sunday brunch or special events. There is little opportunity for reusing over production. Food won't last until the next week. The best chefs still display elaborate desserts in a prominent location. They use trained cooks to slice meats carefully. Salad bars are presented with well made dressings and garnishes.

The best buffets have a favorable impact on food cost results. Unfortunately, many buffet operations hurt the overall food cost results. If your operation uses the weekly buffet as an excuse for poor results, I would consider changing the buffet style meals to banquet style. Portion control in a buffet operation is an art. Careful calculations are necessary to prevent over production.

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