Many chefs and managers know the value of doing thorough food costings regularly, but simply don’t have the time. Many simply buy from the first supplier who comes along, or their favourite, without ever doing comparisons of prices. Many just hate doing the maths involved! Many think they know the costs of products but find they have not taken into account fuel levies, freight, price rises and so on.
The real cost of your food is more than you think. Have you considered wastage during preparation? Staff meals? Spoilage or accidents? Freezer or fridge breakdowns? Recipe testing? Garnishing costs?
When you have an accurate picture of your food costs by recipe, you can also then have a better idea of what your top items are, or those that make you more money, and those that are less profitable. Are you selling more of the top item? If so, you can afford to have a few items on the menu that are less profitable, in order to provide variety or interest. Have you ever examined your sales mix of products? Do you know which items make you the most money? Are they low or high food cost? Low or high labour cost?
The more you understand your business in detail, the more you can make informed decisions and be proactive in business strategies. The more you understand your finances the more likely you are to be profitable and successful. The more you understand where your money goes, the better able you are to be flexible in responding to business needs and opportunities.
Jo has a great deal of experience in costing dishes, whether for one or one hundred. Costing can give you detailed picture of your real food costs and help you to track your expenses. Simple spreadsheets are used, which do the maths for you.
Another aspect of food costing is stocktaking. This is another task that is often overlooked as being boring and unimportant. But it can tell you a great deal. By examining your monthly purchases against your stock used and held each month, you will soon pick up, for example, if stock is going missing. You will also have a better picture of what is on your stock shelf, what is spoiled or damaged each month, and stock approaching its use-by date. This can then govern menu choices or specials.
For some companies, it is useful and important to cost every dish on the menu, and every time the menu is changed. For other smaller businesses, food costing might only be done twice a year, and then only for some dishes on the menu. For others with frequently changing menus, it may be more important to know exactly what your key suppliers are charging for your main items of produce, before purchasing.
We can discuss what is appropriate for your business at our first meeting. Often food costing is done in conjunction with standardising recipes and menus, and implementing stocktake procedures.
