“I know my food costs are higher than I am expecting them to be. But why are they high?”
|Reasons for High Food Cost
|Paying too much for food
||Vendor Contract Administration – store contract prices for each location for each vendor for each item with an expiration date and acceptable variance %. Be visually notified on the AP Invoice when the vendor has charged you for an item outside of your contract before paying the invoice.Item Price Monitoring – Identify the items with the greatest price increases over a given period of time with graphical reports that can be sorted by % change in purchase price. This visibility helps identify when a substitute item needs to be purchased, a menu price needs to increase, or the product needs to be sourced from a second vendor offering a more competitive price. The report also shows all the menu items that include these items with the highest price increases.
|Waste and Spoilage
||Waste and Spoilage Log – managers track the food that is thrown away due to over prepping or spoilage. This log creates a transaction that lowers COGS and books the expense to a COGS –Waste Account. Reports identify the most commonly wasted or spoiled goods and give management the visibility to identify training needs. Use the spoilage numbers to determine if you are buying and storing too much of a given item (i.e. you are buying more of than you can use during a given period.)
||Stock Counting and Theoretical Inventory – managers count their inventory on a regular basis. These quantities are compared to the expected inventory levels taken from the sales mix report (using the recipe costing cards to determine how many or how much of each item should have been used based on what was sold.) Reports display the variances sorted by variance % and amount so that you can focus on those of highest dollar value or highest variance %.
||Recipe Costing Cards w/ Preparation Training Videos – each menu item setup in the system contains a detailed description of the proper preparation. A photo of each item is displayed and a link to a video training of how to prep the time is available right from within the system.