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  • Keys to managing your food costs
    have specified Delivery drivers know which customers check their orders for quality and quantity and the ones that don t run the risk of getting short counted receiving inferior quality or short shelf life Once you sign the delivery receipt the produce is yours so don t accept it if it s not right Back of House Once the product is stored rotated and dated you are ready to look at the areas you control in the production process All restaurants should have standardized recipes for each product on the menu which is the basis for an individual food cost by item Apply your sales mix to the item costs for an overall theoretical food cost This is your operational food cost target on a daily weekly and period basis Managing your food inventory is essential to controlling food cost Key high cost or high usage items should be counted daily an expanded inventory should be counted weekly and a full food inventory should be taken on a period basis Using just food purchases as a basis for food cost calculation will provide inconsistent and inaccurate analysis Inventory can become inflated with improper ordering procedures which are usually the result of inaccurate sales forecasting Too much inventory will cause excess waste and tie up valuable working capital Too thin a level of inventory will cause product shortages and under portioning Regardless of who counts the inventory it is wise to never trust this process to just one person without some form of random or consistent validation Ghost inventory can easily be counted on the books for months hiding theft or other issues A general rule of thumb is that a good dollar value for your food inventory is 10 to 15 days worth of usage Your fresh products and short shelf life products should be turning at a faster rate than frozen and dry for example Managing food waste is important to overall food cost management Food that is wasted is money down the drain To properly track and then troubleshoot food waste problems it helps to do two waste counts each shift o Production waste includes all products wasted as a result of the food production and assembly process Examples of this are over or under cooked portions items returned to the kitchen from service staff and food dropped on the floor o Raw product waste is a result of poor inventory management such as stale dated products or spoiled products caused by lack of proper rotation Other raw product waste can come from delivery shortages or improper handling Good kitchens have two different coloured waste buckets in the kitchen one for finished production waste and one for raw waste These are counted and itemized each shift This helps quickly pinpoint where your training focus should be Front of House Most operators tend to focus their food cost efforts on the back of the house Your service staff can sometimes be the cause of high food cost and this

    Original URL path: http://restaurantcentral.ca/Managingfoodcosts.aspx (2016-02-14)
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  • One surprising thing that powers Canadian restaurants
    s enough to put a significant dent into an industry with annual revenues in excess of 50 billion in Canada and margins of only four per cent With numbers like that a single day shutdown would wash away roughly a month s profit Canadian restaurants can count themselves fortunate that the hot water service available to the industry is by and large efficient and reliable Yet amid fierce competition in the business taking a closer look at water heating technology is one way restaurants can control operating costs cut risk and get a jump on the competition Efficiency and reliability are paramount We know from our decades of experience that for Canadian restaurants reliability when it comes to the essentials such as hot water is the bread and butter of any successful operation says Geoff Atkinson Director of Commercial Services for EnerCare Commercial Services Canada s leading provider of energy conservation products and services Restaurant owners need not be put off by the prospect of a large up front expense when upgrading Unlike many other capital costs switching to a more reliable high efficiency hot water system has a minimal impact on cash flow Some rental programs for commercial water heating equipment have no up front costs for restaurant owners and the only out of pocket expense is a consistent monthly rental rate The savings derived from a high efficiency water heater usually materialize immediately A typical restaurant can expect to achieve cost savings of between 900 and 2 500 per year when upgrading from a standard 80 per cent efficiency water heater to a high efficiency water heater which is 98 per cent efficient Efficiency is maximized when the size of the water heater is appropriate for the level of day to day use Gaining control New technology also

    Original URL path: http://restaurantcentral.ca/hotwaterpowersrestaurants.aspx (2016-02-14)
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  • Avoid spoiled food with thorough inventory control
    than par level place a smaller order to bring it back up to par without going over Further train your staff to understand your inventory process Educate them about your categories purchase units issue units and inventory list With everyone on board when it comes to inventory control you ll be able to gain much needed feedback from your staff about food volumes Make it a routine to count inventory on a regular basis daily weekly etc because the more often you take inventory the quicker you ll be able to identify any imbalances Buying You may be tempted to buy several extra cases of fresh produce when there s a promotion or sale However if you won t be able to use it up within the week you ll be tossing all that food and money in the dumpster Take advantage of specials only when you know you ll be able to use all the goods that week Or ask if your supplier can deliver the items in various stages of ripeness so the shipment will last over a longer time period Receiving Thoroughly inspect all of your food shipments as soon as you receive them not just the items on top If items arrive spoiled or close to it contact your supplier right away and send the food back If this issue becomes a common problem it may be time to scout out a new vendor If any of your items are delivered hot pre cool them prior to refrigerating to prevent bacteria growth If you receive refrigerated items ensure they re delivered at the required temperature Organizing Keeping all of your food organized not just the perishables goes a long way to prevent food waste Label the shelves of your cooler freezer and dry storage areas That

    Original URL path: http://restaurantcentral.ca/spoiledfood.aspx (2016-02-14)
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  • Seven tips to improve your restaurant’s inventory management
    can seriously impede your cash flow Proper restaurant inventory management will help you uncover and reduce food waste costs and maximize the dollars you spend on product Here are seven tips from foodservice distributor GFS Canada to effectively reduce food waste and control your restaurant food inventory 1 Assign a team Choose the people responsible for owning the entire inventory process including how product is organized and received Look for trustworthy individuals who are analytical in nature and not intimidated by a little math 2 Train them well Make sure your team members understand and are adept at the inventory method you use They need to know your inventory categories purchase units issue units food inventory list and more Also impress upon the rest of your staff how important a well managed kitchen food inventory list is to your operation 3 Make it routine Establish a set frequency for your inventory count weekly monthly yearly or even at the close of each business day The more often you take inventory the easier it is to identify and correct problems 4 Make it easy Organize inventory sheets to align with the location of products on your shelves That way the inventory taker won t be running back and forth between locations from item to item Two people make the process even easier one can count and the other can record the information on the sheet 5 Set inventory par levels A par level is the minimum quantity of an item you need to have in inventory to make it to your next delivery If the on hand quantity is lower than the par level simply order what you need to bring it back up to par Cycle menus make it easier to establish accurate par levels 6 Mind your menu Monitoring

    Original URL path: http://restaurantcentral.ca/restaurantinventorymanagement.aspx (2016-02-14)
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  • How to harness bargaining power when negotiating with restaurant and foodservice suppliers
    is not written in stone Make your negotiations an ongoing process and suppliers won t get complacent Keep using several suppliers and compare them regularly Do your research by determining exactly what it costs your supplier to get you the items you want you ll have an idea of how much wiggle room there is in the price And make sure you know the right people to talk to when it s time to negotiate There s no point in trying to get concessions out of someone who doesn t have the authority to offer you the deal you want And be prepared to walk away It s the oldest tactic in the book but it works If suppliers want your business they will negotiate further Negotiate with something other than money It s tough to negotiate discounts in an industry with tight margins and even tougher when you re only buying for one or two locations But there are other things you can ask for Talk with your suppliers about delivery times turnaround payment terms and quality Getting great terms can be more valuable than a couple of percentage points off the price Communicate with your suppliers and be friendly approachable and honest Show concern for their needs by understanding their business If the supplier is having a hard time selling or getting hold of a particular product consider being flexible in your offering Your size and ability to go with the flow can be a benefit Over time you may be surprised at how much more willing they will be to make concessions when they know and like you no matter how small an operation you run Follow seasons and sales cycles Take advantage of seasonal prices Produce is a cost that goes down dramatically when in season Change your menu items and pricing accordingly If there s something perishable a supplier needs to offload the price will be good If your kitchen is nimble and can incorporate it into the menu perhaps as a limited time feature this can make improve profitability particularly if this becomes frequent practice And don t forget about sales cycles If a salesperson needs to meet a monthly quota talk with them just before month s end It s a win win if you can help them fill their quota and negotiate a sizable savings Take advantage of your uniqueness If you specialize in a specialty food or cooking style you may be a supplier s main or only buyer for those items This means you have a lot more leverage when it comes to negotiating on price Shopping local can also save you some serious cash Nearby produce vendors and food manufacturers may have higher costs than overseas suppliers but when you factor in not having to ship product across a country or an ocean you may realize some significant savings and you re likely to get a higher quality product for which you can charge a premium Plus you re

    Original URL path: http://restaurantcentral.ca/negotiatingwithfoodservicesuppliers.aspx (2016-02-14)
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  • Six tips to reduce food waste at your restaurant or foodservice operation
    your waste you must first figure out how much you are wasting and what you are wasting Keep a spreadsheet of which items and how much you are throwing out each night and then adjust your orders accordingly For example if you are serving 2oz of sour cream with your tacos and notice that the majority of your customers are only consuming 1oz cut down your serving size to 1oz 2 Rotate your stock When your inventory arrives make sure that all stock is labelled and dated and shelved behind any older stock Make sure you use up all the items with the oldest dates first This will not only prevent the need to throw out expired or spoiled food but by using up your stock in a timely manner your food will actually taste better 3 Assess your prep waste A significant portion of your waste may come from your food prep Assess your prep waste by monitoring your chefs to see if they are wasting by prepping the food incorrectly or throwing out useable food You can also reuse and recycle food items that are not on your menu For example fats cut from meat could be rendered and used as oils day old bread could be made into croutons vegetable peelings or rinds of cheese could be used to flavour soups and stocks You may also consider donating your food scraps to a food bank and receive a tax cut in return 4 Use smaller plates Control the portion size of what you serve your customers by putting your food on a smaller plate Placing the same amount of food on a larger dish can make the serving appear much smaller than placing the same serving of food on a smaller plate 5 Use seasonal fresh foods

    Original URL path: http://restaurantcentral.ca/tipstoreducefoodwaste.aspx (2016-02-14)
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  • Archives: Cost Control
    make the numbers work The people with the opportunity to Evaluate complimentary snacking A fresh baked loaf pita crisps pretzels or bread sticks many restaurants provide guests with complimentary snack while seated and waiting for their order This traditional value added service is appreciated by Out of control out of business How to reduce inventory control losses at your restaurant High gross margins on beverages and food can cover up a massive amount of operating errors in some businesses Now due to increasing costs bargain seeking and socially connected consumers Eight ways to lower costs at your restaurant A new year has started and perhaps one of your restaurant or foodservice operation s resolutions is to try to cut on costs and reduce waste Food and linen wastage theft poor inventory control and not selling Twenty simple solutions to build your restaurant s bottom line After the crazy pace of December with holiday parties and seasonal celebrations the short days and long nights of January and February can be downright depressing How you manage your cash and protect Five tips for negotiating your restaurant s business lease It takes much more to run a profitable restaurant than marketing managing and menus With the majority of restaurateurs leasing commercial space the commercial lease location and rental rate can dictate How to lower your labour cost per guest Friday night is when you have your lowest labour cost per guest Do the math it s easy Take your payroll and take your guest checks for each day of the week and see how much more you pay in labour cost Keeping tabs on food and beverage costs With food and beverage costs eating up more than one third of a restaurant operation s sales it makes good sense and more than a

    Original URL path: http://restaurantcentral.ca/CostControlArchives.aspx (2016-02-14)
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  • How to save your restaurant or foodservice operation money by filing Records of Employment electronically
    It was pretty tedious and time consuming says Bob Constantinidis the national payroll and benefits manager Constantinidis says he was sceptical when he first heard about filing ROEs electronically but decided to try it with the Pizza 73 restaurants After a positive 18 month trial and attending a Service Canada ROE Webinar last August he was convinced that going electronic was a better way to produce ROEs In late 2011 Pizza Pizza registered with Service Canada to use ROE Web I think the biggest saving is in time with regard to receiving calls from Service Canada says Constantinidis With us issuing so many paper Records of Employment there was a good chance of receiving a lot of questions from Service Canada asking about the accuracy of the ROEs Now when we produce them with ROE Web before we send them in the system does a verification check If there are any errors we correct them before we send them and we re good to go Roy Khan manager of payroll and benefits at Prime Restaurants Inc agrees with Constantinidis that accuracy is one of the benefits of ROE Web Prime Restaurants operates franchise restaurants and pubs such as East Side Mario s The head office in Mississauga prepares payroll for 12 corporate stores There are 700 restaurant employees and another 100 at head office Between 400 and 500 ROEs are issued annually Khan recalls that when filling out paper ROEs there was always the possibility of making errors You d be doing manual calculations says Khan If you use paper you re just transcribing information or transposing to documents so you could make a mistake that way Prime Restaurants has been filing ROEs electronically for the past eight years With ROE Web Khan says employees are happier because they don

    Original URL path: http://restaurantcentral.ca/electronicRecordsofEmployment.aspx (2016-02-14)
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