I know my COGS numbers, now what? The restaurant industry has historically managed their teams to the Actual COGS numbers. The age old equation, Beginning Inventory + Purchases – Ending Inventory = Usage. Usage/Sales=COGS. The most successful operators understand this is only part of the equation. Understanding the Theoretical Cost or “perfect performance” and how far away the team is from
If you’re using pen and paper to take inventory, you know which ingredients you need to order for next week. That’s great. But, do you have a true sense for how often each ingredient sells out? Do you know how much money you’re losing to spillage, over portioning, orders being sent back, theft, and more?