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 restaurant can set and control the costs.

Alcohol Costs – Monitor Closely

Alcohol Costs

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. 

Controlling Labor Costs in a Restaurant

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 food service operation.

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