Top 10 Tips for Cutting Costs in Your Foodservice Operation

With the economy affecting all of us, ongoing cost control through careful spending is becoming priority #1. According to Jeff Breeden of Cook’s Direct, “Many of the restaurant owners and foodservice managers that we talk to everyday are telling us how the number crunching in the kitchen is now critical to controlling costs and staying afloat during these rough times.” Here are ten easy tips to help you cut costs in your kitchen.

Create a Sales Plan and Budget

For every business goal, you should have a plan. To effectively manage kitchen costs, you need a good plan in place that balances sales projections with expenses. Although going through this process is tedious, the outcome can save you hundreds, even thousands, of dollars. But to be effective, you must measure actual costs and revenues and compare these to your budget on a monthly basis. For every area that is over budget, it’s time to dig into the account and analyze why costs are too high. In some areas, costs may be under budget. Understanding why costs are under budget is as important as digging into those that are over budget.

Good fiscal management is the key to any successful business. A good business plan evaluates your expenses, sets a budget, and helps you to trim costs where necessary and most appropriate. It will also help you understand the mechanics of your business. Being in tune with each area of your operation will lead to great profitability.

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