12 Know your food cost for every single item
In the food and coffee business your food cost is one of the two key
numbers that you must have total control over. You need to know
your food cost every week. Every single week. You have got to
know how much it costs you to create the level of sales you
achieved. Count your stock at the beginning of the week and at the
end of the week and then sit down and count your invoices.
The numbers won’t lie.
Control waste and develop systems to check wastage levels. Create
simple wastage sheets and most importantly make sure they are
filled in with a monetary value. Consider using clear bin bags so
that everyone is more aware of what is being thrown out. Make
sure every item has a PLU key on the till. Compare theory with
actual every week. Get this – 2% variance on a £300K café is £6k off
the bottom line.
Consider bin bag audits to ensure that proper procedures are being
adhered to. It isn’t fun but it makes it very easy to check up on how
well the kitchen is being run and how tight things are. Worried that
you might be offending staff? May we refer you to Number One?
Knowing your food costs for each item and having a clear
understanding of how the margins differ between products will
help to fuel your marketing. The reason we love coffee so much is
because the margin is so great. But don’t forget that a lower
percentage margin can still mean a higher pound note margin. In
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