Do You Have A Finger On The Pulse Of Your Business?

Having a finger on the pulse of your business means having control of your costs. And cost control is a living, breathing entity requiring constant management and involves every step of receiving, storing, utilization, preparation and execution.

Cost controls are more about controlling people than controlling things. Food doesn’t walk out the door on it’s own, liquor doesn’t over-pour itself, and payroll isn’t wrong unless someone gives inaccurate numbers. In each of these instances, the problem is a result of human action or lack of it. In order for your business to be profitable and to reach your financial goals, you must direct, regulate and restrain the action of your employees.

Here are some 12 ways you can implement cost controls in your business:

  • Establish recipe standards to eliminate inconsistency and wasted product.
  • Create a receiving procedure to ensure quality product is delivered to your door.
  • Implement portion controls to ensure consistency and manage food/beverage cost.
  • Analyze sales history to identify trends to help you manage product purchasing.
  • Take the time to train your employees on standard operating procedures and set an example by following your own rules.
  • Study product mixes to alert you of discrepancies between purchasing and sales.
  • Implement monthly inventories on all food and beverages.
  • Review past invoices to ensure correct pricing from your vendors.
  • Inventory costly items weekly to ensure against waste and theft.
  • Don't be afraid to observe and correct employees, they want to succeed.
  • Hold management and employees accountable.
  • Prepare and follow budgets to achieve your financials goals.

If your goal is to be the best restaurant in the city, you've got to have the controls in place to ensure quality products, training to deliver quality service and a profitable business to keep it all going. Some of these tasks are relatively easy to implement, while others may require outside help.