Original: Li Sheng
For most existing catering companies
The era of small profits
It's hard to survive without low-cost exploitation. We can say that "price determines death"
Today's market competition is competition of power, competition of talent, competition of product and service quality, and competition of value
In a sense
Cost determines competitiveness of an enterprise. Business leaders should change traditional narrow concept of cost, combined with real situation in enterprise
Make full use of modern advanced cost control techniques to improve competitiveness of enterprises and meet challenges of all parties
In this regard, I will deeply analyze current procurement cost control skills according to current situation in food service industry and show them to everyone for inspiration
Session 1. Shopping
Purchasing is starting point and guarantee of restaurant operation
This is also first link in controlling food costs. To control costs well at procurement stage, this must be done
(1)
Develop procurement specification standards
In other words, purchased raw materials must be strictly regulated in terms of shape, color, grade, packaging requirements, etc.
Of course, it is not necessary to use specifications for every raw material, as a rule, only for those important raw materials that affect cost of dishes.
(2)
Restaurants should only buy ingredients that will soon be used
Purchasing staff should be familiar with menu and latest operating conditions of restaurant, so that there is only enough fresh ingredients for a day
(3)
Purchasing staff must have a good understanding of food ingredients and market dynamics
Purchase raw materials that meet needs of restaurant, on time, qualitatively and in quantity
(4)
At purchase
Look at prices and buy highest quality raw materials at most reasonable price
At same time, try to buy locally to save on shipping and other purchases
(5)
Regular ethics training for procurement staff
Let them tweak idea that everything is a restaurant and avoid substandard or private kickbacks
(6)
Developing procurement approval procedures
Departments that require raw materials must fill out a purchasing form, which is usually approved by chef and submitted to purchasing department. If purchase amount exceeds maximum limit, this should be reported to restaurant manager for approval< /p>
The procurement form is made in triplicate, first and second copies are sent to purchasing department, and third copy is kept by person responsible for purchasing department for future verification
Part 2: Acceptance
The restaurant must formulate working procedures for receiving raw materials, and acceptance is usually divided into three aspects: quality, quantity and price
(1)
Quality. The receiver must check whether purchased ingredients for dishes meet original specifications and requirements
(2)
Quantity: check quantity or double check weight of all ingredients of dish, and also check if delivery quantity matches quantity in application and quantity in invoice
(3)
Price: does price of purchased raw material match declared price
If there is a discrepancy in above three aspects
The restaurant must refuse to accept all or part of raw materials, and finance department must also refuse to pay and notify supplier of raw materials in a timely manner.
If all acceptance checks meet requirements, complete acceptance form and purchase a daily report
Section 3. Inventory
(1)
Inventory is an important part of cost control
Incorrect inventory will lead to spoilage or loss of raw materials, etc., which will increase cost of dishes and reduce profits
(2)
Storage and storage of raw materials should be handled by special personnel
The custodian is responsible for security of warehouse and no one can enter warehouse without permission
In addition, to prevent theft of raw materials, it is necessary to change locks regularly
(3)
After purchasing raw materials for dishes, they should be quickly placed in appropriate warehouse in accordance with their category and capacity
Keep at a suitable temperature
Restaurants have their own warehouses, such as dry goods warehouses, cold stores, ice storage, etc. Different warehouses have different requirements for raw materials
The main requirement is classification and storage in different rooms
(4)
All ingredients in stock must be marked with date of purchase
To handle inventory turnover well
In distribution of raw materials, principle of "first in, first out" should be observed, i.e. first stored raw material is used earlier, and last stored raw material is used later
(5)
In addition, custodian must always check operation of refrigeration and freezing equipment and temperature of each warehouse
Take good care of cleanliness in warehouse so that pests and rats do not damage or destroy raw materials for dishes in warehouse
(6)
At end of each month, keeper must take an inventory of raw materials in warehouse and fill out an inventory form
(7)
Inventory points must be weighted, but inventory cannot be scored
An accountant and a custodian should participate in inventory
The profit and loss situation must be strictly checked by restaurant manager
In principle, ratio of profit and loss of raw materials to amount of shipment this month should not exceed 1%
Part 4. Distribution of raw materials
Raw material release control has following two important aspects
(1)
Do not take materials from warehouse without approval.
(2)
Get only ingredients you need for your meal
For this
The restaurant needs to improve its sourcing system, most common being use of a sourcing list
Four copies of application list, one for kitchen
One copy for warehouse clerk, one copy for accountant, and one copy for finance department. Generally speaking
The kitchen should inform warehouse in advance of requirements for collection of materials, so that warehouse owner can prepare in advance
Part 5. Roughing
The work of cost control in roughing process is mainly scientific and accurate measurement of net cost of various raw materials
In order to improve net material rate of raw materials, this must be done
(1)
When roughing, process in strict accordance with prescribed work procedures and requirements to achieve and maintain proper material net rate
(2)
For high value raw materials, experienced chefs should experiment first to suggest best processing method
(3)
Parts removed during rough processing (meat, bones, etc.) should be recycled as much as possible to improve their utilization rate and use them as efficiently as possible to reduce costs
Part 6. Mapping
Matching is an important link in determining cost of main ingredients and ingredients
When cutting and matching, actual position of raw material should be used according to actual position of raw material
Use big ingredients, use small ingredients, and make most of leftovers to keep cost down
Restaurants usually use a quota system for consumption of raw materials for dishes
Strict arrangement of dishes in accordance with specifications and quality requirements of menu items
After consumption of raw materials is determined, it is necessary to draw up a table for calculating quotas for consumption of raw materials for dishes and carefully follow it
Under or overdosing or poor use is strictly prohibited. The main ingredients must be weighed, and we must not rely on experience to grab them by chance, but strive to ensure characteristics and quality of dishes
Section 7. Cooking
Cooking catering products affects quality of dishes on one hand
On other hand, it is also closely related to cost control. The influence of cooking on cost of meals is mainly manifested in following two aspects
(1)
Amount of spices
From point of view of cooking, fewer seasonings are used, which account for lessA lower share of cost, but in terms of total number of catering products
The seasonings used and their cost are also significant, especially oil, monosodium glutamate and sugar
Therefore, in cooking process, it is necessary to strictly observe cost specification of seasonings, which will not only make quality of dishes more stable, but also make cost more accurate
(2)
The quality of dishes and percentage of their refusal
In cooking process, one pan, one dish should be preferred, special dishes should be prepared, work procedures should be strictly observed, and cooking times and temperatures should be respected.
If a guest comes to a restaurant for a bite to eat, has an opinion about dishes and asks to change them, this will affect quality of service and cost of dishes
Therefore
Every chef should work hard to improve their culinary skills and innovate, serve ingredients intelligently, and aim for no or less waste in order to effectively control cost of dishes in the cooking process
Section 8. Sales
On one hand, managing a selling link allows you to effectively stimulate sales
On other hand, this is necessary to ensure that all products sold are recycled
The goal of control at this stage is to deal with low-selling and slow-selling dishes in a timely manner through sales analysis
For this
First of all, you need to analyze list of dish sales. Thanks to analysis, we can not only identify effective needs of guests, but also promote catering sales
Managers must use results of this analysis effectively
For those "star dishes" with high profits and high popularity
Packaging and marketing should be actively developed, such as "Chef Recommended Meals"; for dishes with high profits but low popularity, find out reasons
To plan how to sell low-margin but highly popular dishes, learn how to increase profits
For marginal and less popular varieties, adjustments and substitutions should be made to increase sales efficiency and profit margins
Session 9. Service
Inadequate service during service process will also increase cost of dishes, mainly in following aspects
(1)
When waiter filled out menu, he did not re-check dishes ordered by guests, so when serving dishes, guests said that they did not order dishes
(2)
The service staff stole dishes and applied an insufficient amount, which caused complaints from guests
(3)
Serving staff overturned plates and soup pots when transferring or serving dishes
(4)
An error occurred during delivery. For example, waiter shifted dish ordered by guest at table 1 to table 2, but guest at table 2 did not explain
The above phenomena
Restaurant should strengthen professional ethics training and regular business-technical training for service personnel so that they can correct their attitude towards service
Establish a good attitude towards service, improve service skills, serve guests strictly according to rules, strive to avoid mistakes or make them less, minimize food costs
Session 10. Collection
A restaurant should not only do its job well from procurement of raw materials to preparation of dishes
Control costs in service process, but also pay attention to collection control to ensure profitability
Any errors during data collection
Due to loopholes, cost of meals will increase. Therefore, restaurant managers should control following aspects
(1)
Prevent missing or underpricing and underpricing
(2)
Indicate exact cost of each dish on invoice
(3)
Accounting is correct at checkout
(4)
Prevent missing andwhether to bypass accounts
(5)
Strict prevention of corruption and fraud by cashiers or other personnel
Session 11. Overview
Every day after business closes
A restaurant worker must prepare a "restaurant day report" based on invoices and menus. The working day report is compiled in three copies, one copy is kept independently
One copy is handed over to General Services along with invoice signed and paid by guest, and one copy is collected along with all invoices and menus
Reservations for banquets, etc., as well as cash in form of daily operating income, are transferred to finance department for review
The finance department should conduct a thorough check in accordance with "restaurant business day report" and related original documents to ensure interests of restaurant
Session 12. Focusing on innovative dishes and cost reduction
Controlling enterprise costs in addition to preventing them from rising
It may be more likely that cost will decrease to some extent each year, but there is always a limit to decrease in value
After reaching a certain limit, if it is not an innovative technology, process, equipment increase or improvement, etc., it will be difficult to reduce cost, and management may recover or increase if management is a little loose.
After a certain price reduction
Catering companies can only cut costs through innovation, reduce amount of raw materials or find new ones through technological innovation
Replacing old and expensive raw materials with cheaper raw materials; increase utilization rate of raw materials, reduce waste of raw materials, and increase number of finished products or first-class products in terms of technological innovation
Innovative workflows and management techniques to increase productivity and use equipment to reduce labor and fixed unit costs; increase sales through innovative marketing methods
Reduce marketing costs per unit of product. Only continuous innovation and effective incentives to stimulate innovation are main and key way for catering to continuously reduce costs
Session 13. Focus on key points to cut costs
All aspects of costing
The role of each item in cost can be different, and some links play a key role in formation of cost
Some relationships have little effect on formation of costs. Enterprise cost management must start at key points and cover key cost points, often achieving double value for half effort
For example, in catering industry, it is difficult to find new ingredients for dishes, and prices for common ingredients are relatively open and transparent
Nowadays, innovative cooking methods and changing combination of raw materials are becoming key to increasing profits and reducing costs
Lesson 14. Control and cut costs
Catering companies can also divide cost of dishes into controllable and non-controllable costs. Of course, so-called uncontrollable costs are relative
There are no absolute uncontrollable costs. Uncontrollable cost usually refers to value generated as a result of decision making by enterprise, including salaries of management personnel.
Depreciation expenses and some business management expenses, as these expenses were formed after establishment of enterprise or implementation of solution, on general terms
It changes less and it doesn't make much sense for you to put a lot of effort into controlling these relatively fixed costs
Only those that can be artificially regulated during production and operation, such as consumption of raw materials, consumption of dishes, purchase price of raw materials
Office expenses, travel expenses, transportation expenses, capital use fees and other controllable expenses, it makes sense for us to make an effort to control them
Lesson 15. Master system and cut costs
Cost control requires involvement of all cost-related personnel
How to fully realize role of each stakeholder in cost control is one of problems that enterprise cost control should solve
The cost control of an enterprise cannot be based on conscious wishes of everyone, it is necessary to create a cost control system and an appropriate incentive and deterrence mechanism
Rely on system, use incentives and restrictions to mobilize subjective initiative of employees to control costs, link cost savings to direct interests of controllers, and use rewards and punishments to transform enterprise's passive cost control into active cost control. for all employees
Lesson 16: Eliminate Hidden Costs and Reduce Costs
Traditional cost control methods of most catering companies are often ineffective, and space forthere is too little cost reduction that these cost control methods can provide
And excessive control over costs is often achieved by reducing quality of food and weakening quality of service, for example, by reducing cost of purchases
Due to lower raw material prices, this weakens company's competitiveness in long term
Actually
The reason for this phenomenon is that these enterprises only see all kinds of "explicit costs" in enterprise, but turn a blind eye to various "hidden costs" in enterprise. Controlling these "hidden costs"
In addition to traditional methods of cost control, cost reduction should be viewed from the perspective of corporate strategy, linking cost control to enhancing corporate competitive advantage
Cost control is an important tool for increasing revenue and reducing costs in hotels.
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