If you’re looking for a perfect storm of how supply and demand have left us all struggling, look no further than the humble chicken wing.
If you don’t know what your inventory is, you don’t know what your margins are, and you don’t know what you’re making, you’re dead in the water.
Simply put, restaurant menu engineering is the art of determining how profitable and popular menu items are at your restaurant. When done correctly, it can pay dividends by boosting profits by more than 10%.
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?