Jan 262014
 
Alcohol Costs – Monitor Closely

In the restaurant business, alcohol is the single best margin generator.   If you are going to have a profit, this is where the money is made.  As an owner, you need to understand the value of alcohol sales and the associated costs.  This aspect of operations not only generates high contribution margins, it covers its share of costs and ultimately adds to the bottom line.  In this article, I’ll explain the concept of the contribution [… Read More …]

Feb 242013
 
How to Purchase Equipment for a Restaurant – Business Finesse

Purchasing equipment for a restaurant is a daunting task.  There are three phases to successfully purchase restaurant equipment.  The first is planning, see How to Purchase Equipment for a Restaurant – Planning Phase for more information about this phase.  The second is research, go to How to Purchase Equipment for a Restaurant – Research Phase for an understanding of this phase.  This article covers the third phase of purchasing equipment, using business finesse to negotiate [… Read More …]

Feb 192013
 
How to Purchase Equipment for a Restaurant – Research Phase

Purchasing equipment for a restaurant is a daunting task.  There are three phases to successfully purchase restaurant equipment.  The first is planning, see http://businessecon.org/2013/02/how-to-purchase-equipment-for-a-restaurant-planning-phase/ for more information about this phase.  The second is research.  This article covers this phase of purchasing equipment.  The third in this series is using business finesse to purchase the equipment for the best price.  Research This is really an extension of planning.  If done properly, this will take a few [… Read More …]

Feb 182013
 
How to Purchase Equipment for a Restaurant – Planning Phase

Equipment costs for a restaurant can easily consume the gross profit of your restaurant.  The key is to keep the costs low in order to spread the costs appropriately over time.  Purchasing equipment for a restaurant requires planning, researching and using finesse to acquire equipment at the lowest cost possible.  This article is dedicated to teaching the owner how to purchase the equipment for a restaurant at the lowest cost possible. To keep costs down, [… Read More …]

Jan 082013
 
Controlling Food Costs in the Restaurant Industry

The top two costs associated with owning a restaurant is labor and food.  Controlling these costs in effect is the bottom line in your business.  So how do you control food costs?  First identify the correct quantity and quality of food you serve.  Next, look at the flow of food on a daily and weekly basis.  Finally evaluate tools and techniques to reduce food volume and waste.  By taking these steps, an owner of a [… Read More …]

Dec 092012
 
Controlling Labor Costs in a Restaurant

There are two costs that stand out in the restaurant industry.  Food and labor comprise more than 45% of the typical expenses of the restaurant.  No other expense comes close to these two costs.  This article is dedicated to controlling the labor costs in your restaurant. No two restaurants are alike.  So there is no definitive formula.  You have to use information that is available and exercise reasonable expectations of the outcome.  For fast food, [… Read More …]

Dec 032012
 
Food Service - An Introduction to Owning a Restaurant

I have always been impressed by those that provide this product and service to our society.  Overall, I don’t think they charge enough, but that is just my opinion.  It also comes out in the numbers.  I have reviewed the books for over 40 different types of food service operations.   From franchise based to the hot dog cart, from those that serve quality food to those that buy their food supplies at the local Sam’s [… Read More …]