Reasons for changes in restaurant production costs

How to control catering costs

With the changes in the market environment, more and more competitors, and the impact of the macroeconomic situation, the catering market is also undergoing major changes : Market competition is becoming increasingly fierce, and the era of high profits is a thing of the past. Capture profits from internal management. Strengthening financial management, reducing costs and obtaining maximum profits are the starting point and destination of strengthening catering management.

Procurement link - planned procurement, pre-control

The characteristics of catering and kitchen procurement are: diverse varieties, short shelf life of raw materials, and large price changes. In particular, the procurement of food raw materials is the focus and difficulty of kitchen cost control.

Establish raw material procurement plan and approval process. Catering department managers should formulate periodic raw material procurement plans based on the operational characteristics of hotel catering and refine the approval process. For example, for raw materials that go directly into the kitchen every day, the purchase amount of raw materials for the next day must be determined based on the business situation of the day and the existing storage capacity of the warehouse, and shall be reviewed and approved by the executive chef. Important raw materials such as swallow, chicken wings, abalone, etc. must be subject to secondary control and must be declared by the head chef, reviewed by the catering director and submitted to the general manager for approval. Reduce unplanned purchases. Unplanned and large items must be submitted to the general manager for approval for purchase.

Establish a strict periodic inquiry and quotation system. At present, most hotel catering raw materials that go directly into the kitchen are priced every 10 days. For varieties with relatively stable daily prices, ten-day or monthly prices are implemented. The Catering Department has established a periodic market inquiry system and strictly implemented it. To detect market price changes in a timely manner. At the same time, you can also find seasonal dishes and enrich the variety of food for dining.

Implement a tiered pricing plan. At present, the tiered pricing maturely used by hotels effectively restricts the bidder, price setter and purchasing department. That is, the bidder bids every ten days, the price setter and the purchasing department personnel open the boxes together, the purchasing department enters the bid price, the catering department and the purchasing department enter the market inquiry from the other party, and the price setter obtains the raw materials from the three channels. The price information is compared and screened, and the price is determined based on the situation, without the three parties meeting each other.

Prepare standard market orders. In order to ensure that the specifications of various food raw materials are in line with market supply and kitchen production needs, kitchen managers must strictly prepare the company's purchase details. There are many varieties and specifications of food raw materials, and their market forms are different. Therefore, the company's procurement specifications, that is, raw material specifications, must be formulated according to its own business scope, as standards and standards that suppliers and acceptance personnel must abide by. Basis for acceptance.

Acceptance link - strictly control the purchase

The purpose of acceptance control is to inspect the purchased raw materials and check the price and quantity of the purchased raw materials according to the hotel's own food raw material quality specifications. Whether it is consistent with the quotation and order, and the various raw materials received are delivered to the warehouse or kitchen in a timely manner. Therefore, acceptance control is the first step before this raw material enters the kitchen and warehouse.

Establish clear acceptance criteria. The executive chef of each hotel should formulate raw material standards that are suitable for the market and meet the requirements for dish production based on the hotel's menu. For raw materials that go directly into the kitchen, dedicated kitchen acceptance personnel and procurement acceptance personnel are required to check the quantity and quality standards of raw materials, as well as purchase orders and quotations every day. We will resolutely return raw materials that are of poor quality or exceed reservations to ensure the quality and reasonable quantity of raw materials flowing into the kitchen.

Implement the acceptance responsible person system. The acceptance work should be carried out by a full-time acceptance inspector, and the business should receive professional guidance from the catering department. Acceptance personnel should have rich knowledge of raw materials, know how to cook, recognize raw materials, and be good at identification. And you need to visit the market regularly to get first-hand information. In the selection of acceptance personnel, it is required to have good professional ethics, be honest, shrewd, careful, and act impartially. Acceptors must implement "three no-acceptances": no acceptance of excessive purchases, poor quality, or inconsistent specifications; no acceptance of items purchased without approval; no acceptance of items whose price and quantity are inconsistent with the purchase order. Daily acceptance inspection must involve the participation of catering department personnel. After the inspection, the inspector must fill in the acceptance certificate. If quality problems are discovered in the future, the first person responsible must bear responsibility.

Valuable raw material labels are managed by dedicated personnel. For some valuable items, a labeling system should be established and managed by a dedicated person in the management team. Such as swallows, abalone, etc., not only the weight, but also the number, quantity, and portion control must be recorded. For some valuable seafood, such as lobsters, elephant clams, etc., it is also required to record the number to facilitate financial accounting and control.

Acceptance results record file. Purchasing and acceptance personnel are required to fill in the "Purchasing and Acceptance Daily Report" every day, record the supply of raw materials, evaluate the creditworthiness of suppliers, and make relevant analyses. A summary analysis is required every 10 days (before pricing) and the report is submitted to the catering department. , Finance Department and General Manager’s Office.

Inventory link - effectively reduce inventory costs

The purpose of inventory control is to ensure hotel operations with the lowest inventory level through scientific inventory management measures. In our assessment of hotel general managers, there are also specific indicators on inventory, the purpose of which is to reduce inventory and increase cash flow.

Improve the regular inventory system. The catering department should regularly conduct inventory in the secondary warehouse. This is usually done every half month. Through inventory, it is clear which varieties should be controlled and what control methods should be adopted, such as suspending the purchase, allocating for use, and shipping out the warehouse for use as soon as possible, etc., thereby reducing the occupation of inventory funds, speeding up capital turnover, and saving costs.

Use the minimum amount of funds to ensure the normal operation of the business. Strictly control the inventory of purchased materials. Check inventory items every day (especially inventory items in refrigerators and freezers), replenish insufficient items in a timely manner, and reduce or stop supply of slow-moving items to avoid losses caused by raw material deterioration. The upper and lower limits of inventory should be reasonably set according to the current operating conditions, and inventory control should be carried out by secondary kitchen warehouse managers every day, and the principle of first-in, first-out should be followed to ensure the quality of raw materials. For some raw materials that are unsaleable due to the off-season, Drinks and other beverages are promptly promoted through the front desk to avoid waste caused by expired raw materials.

Do a good job in delivery management. Distribution control is one of the key points of storage control. The purpose of distribution control is to distribute raw material specifications and quantities that meet demand according to business needs, and to control cost expenditures from the source. Establish a strict entry, exit and collection system. A signature sample should be set up in the warehouse, especially for valuables, which should be collected by a designated person. Warehouse managers should do a good job of registering the incoming and outgoing raw materials, so that they can clearly see the ratio of daily operating conditions to the quantity of raw materials received. It is necessary to do the following: there is no requisition sheet, and the distributing personnel are not allowed to issue or receive it; the requisition sheet is not filled in clearly, the leader in charge does not sign it or does not match it; the quantity and amount do not match, and the content and form filled in do not comply with the hotel's financial management The requirements of the system are not distributed and other rules. For some expensive wines, the "bottle-for-bottle" method can be used to control them.

Shelf life management. Food, beverages, cigarettes, etc. all have a certain shelf life. Some materials have a short shelf life. All warehousing must have labels and certain maintenance expectations. For example, drinks must be processed a few days before the shelf life. A complaint once occurred in a hotel. It turned out that the drinks that the guests drank during breakfast had expired that day. Although the hotel did not suffer any losses in the end, it left a very bad impression on the guests.

Establish a strict loss reporting system. Establish a strict loss reporting system for the deterioration, damage, and loss of raw materials, tobacco and alcohol, such as tableware, and establish a reasonable loss reporting rate. If the loss exceeds the regulations, the department must analyze and explain the reasons, and link it to the department bonus assessment.

Take stock of key points at the end of the month. Inventory is a meticulous work and is the basis for all analytical data. The accuracy of inventory also affects the accuracy of costs. An abnormality was found in the gross profit margin of a certain hotel's catering business that month. When the company's finance department went for an inspection, it was found that the hotel's catering department only accurately counted the materials in stock when inventorying, and only made a gross estimate of the materials in use, resulting in a large change in gross profit margin. Therefore, when doing inventory, the first principle is to check the physical objects first and then reconcile the accounts; the second is to inventory the quantity of raw materials in stock, and more importantly, the quantity of food raw materials in use; the third is to inventory the beverages in stock and the beverages in use. Alcoholic beverages (such as the unused quantity of opened bottles).

Production link - standardized operations to control losses

For the control of the production link, the main task is to establish a standard system.

Moreover, the head chef must regularly train the ordering staff on food matching, profit control, and nutrition knowledge to increase sales at the front desk.

Sales ranking analysis. The existing catering competition is fierce and the frequency of dish innovation is high. Regular sales ranking analysis of dishes and drinks can not only discover the effective needs of guests, but also promote catering sales. A certain hotel has been open for nearly 4 years, and there are nearly 8,000 dishes on the computer. However, after analysis, it was found that only 900 varieties are sold on average per month, and only 450 varieties are sold for more than 6 portions per month. This results in a large amount of material preparation, low sales volume, and unclear features. It is recommended that hotels analyze the sales rankings of dishes every quarter (or every two months). Those with high profits and high popularity can be classified as "star dishes" and should be vigorously promoted, such as developed into "chef recommended dishes"; For dishes with high profits but low popularity, we need to find out the reasons, such as insufficient introduction, unpopular taste, unsophisticated menus, etc., and plan how to sell them; for dishes with low profits but high popularity, we need to innovate and discuss how to improve them. Profit; while varieties with low profits and low popularity should be adjusted to improve sales efficiency and profit margins.

Determination and analysis of cost differences

Catering managers hold regular cost analysis meetings and find the reasons, which is an important task in catering cost control.

Monthly food and beverage cost accounting. Catering cost control should be based on the target cost and measure, inspect, supervise and guide the various costs incurred in daily management, so that the cost expenditure does not exceed the predetermined standards or budget on the premise of meeting the needs of business activities. . Therefore, the department should complete the cost report work every day; analyze the gross profit margin report every 10 days; conduct food and beverage cost accounting every month to calculate the food cost rate and beverage cost rate.

Convene a cost analysis meeting. The Catering Department convenes a meeting once a month to hold a financial analysis meeting with the Finance Department, Catering Cost Controller, and Marketing Department representatives. Compare and analyze the current month's operating income and costs as well as the costs of previous months to find and analyze the reasons for failure to meet or significantly exceeding the gross profit margin standard.

Manage all employees - comprehensive assessment

Strengthen energy control - reduce energy consumption. Cultivate energy-saving awareness among all employees. Grassroots management personnel have strengthened inspections. Fans and air conditioners have been turned on according to different seasons and business needs, and waste in the use of gas and water has been controlled as much as possible. Some hotels have compiled an "Energy Consumption Control Knowledge Manual" for energy consumption control, so that all employees can learn it, develop habits, and reduce energy consumption. The catering department should also formulate a detailed "Closing Checklist" to conduct daily inspections after closing. The engineering department should be required to copy the energy consumption report every day and compare it with the revenue of the day. If any abnormalities are found, the cause should be found immediately.

Reduce the loss of equipment aging. Such as the daily correct maintenance and maintenance of circulating water and temperature control of raw materials, storage and refrigeration of raw materials, dish processing equipment, cooking and production equipment, etc.

Establish a comprehensive economic responsibility assessment system. To further improve cost control, a strict responsibility cost assessment system must be established. Based on the catering annual operating assessment indicators, the department directors and executive chefs will be assessed on their responsibilities. At the same time, various indicators are broken down into regions and teams, and are linked to economic interests on the basis of assessment, so that there are rewards and penalties.

Scientific staffing and dynamic employment. It is necessary to scientifically and rationally designate positions and rationally use various types of personnel, and dynamically use personnel according to operating seasons to reasonably control labor costs.

Involve everyone to raise awareness. Employees in all work links and positions are the direct and effective controllers of costs and expenses. Only all employees form a full-staff cost management group from top to bottom, forming an atmosphere where everyone contributes to the hotel and focuses on efficiency everywhere.

Future development trends - information technology and catering cost control

The development of modern technology and the application of management systems will make our management more convenient and efficient. Technology is also the development trend of catering management. The use of information management tools can improve the efficiency of the operation layer, improve the control strength of the management layer, and improve the scientific nature of decision-making at the decision-making layer. Therefore, catering employees should strengthen their studies and promote scientific management.

Improve the information management system and implement a standardized catering cost accounting system. Utilize advanced computer systems to improve the information management system. For example, the logistics system we used before can scientifically manage procurement-acceptance-inventory-standard menu-cost accounting-supplier communication, etc. At the same time, we must also pay attention to the application of existing software system functions. For example, the existing NCR system can regularly conduct guest consumption analysis, dish sales ranking, etc. Provide useful data to strengthen cost control.

To control catering costs well, we must adhere to one principle: to control costs under the premise of established product positioning and product standards. We should pay attention to the target market and the hotel's product positioning, and focus on quality first. We need to sort out the work process, improve the work habits, improve the work system, and enhance the ability to turn knowledge into profits