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Friday, February 25, 2011

Easy Cost Control Measures you can Implement

Cost control is one task in restaurant management that needs a lot of scrutinizing. In layman's term, cost control is how you keep your expenses at a figure that does not exceed your budgeted expense. It is eliminating unnecessary spending.

Cost control is very critical especially in maintaining wise and optimal usage of ingredients. Controlling how ingredients and supplies are used in the kitchen while the restaurant is in operation is quite difficult so a lot of the cost controlling has to be done while the restaurant is off peak hours.

In my experience as a restaurant consultant, this is where a lot of restaurateurs give up easily only because it is tedious. From purchasing to releasing to inventory, it is a whole department all on its own. Admittedly so, I think that since the ingredients are the roots of the business, it has to be given a lot of attention.

Cost control is not easy to implement but here are quick changes you can do that can help:
  • EMPLOYEE EXIT CHECK. Make sure that employees' belongings are checked before they leave the premises. Check for items that could possibly be the company's properties.
  • MITIGATION CONTROL. In your stocks or inventory management, the person requesting cannot release the stocks to himself, the person who purchased cannot receive and check the receipts and the person releasing the stocks cannot do inventory.
  • REGULAR INVENTORY. Conduct an inventory of all stockrooms at least once a month specially for the purpose of getting a closing inventory. Beverages can be checked weekly or daily as well.
These are just a few things you can do to initiate cost control in your establishment.

Wednesday, February 23, 2011

The Water Situation

We all know that water has become more precious nowadays than it did 20 or 30 years ago. As a major component in this industry, the policies that govern service of water has changed.

Before, once a guest is seated, water is automatically served. When the glass gets half empty, the
waiter comes to refill the glass right away. All, of course, in the desire to give outstanding service.

Times have changed, of course. Water has become expensive, the source fragile that we have to buy bottled water as well.

When asked now about service policy on water, I would answer: Serve water if guest asks for it or if guest say yes to being served tap water.

One, guests have become extra-careful about the water they drink. A lot of people now drink only bottled or purified water. Two, water conservation is called for given the dreary forecast we are given about water scarcity. Three, there are a lot of people who are just not water drinkers.

Even if you have an abundance of water now, think about being thrifty about it. It's good for your pocket and it's good for nature. Most guests now understand our water situation.

If I may suggest these policies concerning water during service:
- Once guests are seated, ask guests for their order and ask if they'd like to be served water.
- Refill water glasses or goblets only when asked or ask guests if they want their glass refilled. I always cringe when I see a lot of water leftover in restaurants.

Saving on water does not mean holding back good service if done courteously.

Sunday, February 20, 2011

Do you know your average check?

AVERAGE CHECK is one of the figures that a restaurateur has to constantly know. Sadly, most managers don't even bother knowing these significant reports that can definitely help them in decision-making.

The Average Check is your Total Sales divided by Number of Guests.
Average Check = Total Sales
________
Number of guests

What do you need to get to your average check? A report of your total sales and a report
of your total number of guests. If you don't have a POS system, it is fine and this reporting can be done manually. Just total your sales to get your sales report. For the total number of guests, instruct your waiters to indicate number of guests for each orderslip and total those too.

Average check can be computed daily, weekly or month or even yearly. Just use the corresponding sales report and guest total for whicever time you wish. If you wish to get the average check on a daily basis, compute it using the data from the day you want to know your average guest check and so on.

The average guest check or average check tells you the average amount of money your cguests spend in your restaurant. It tells you if your computed per person rate or costing is quite congruent with what your guests actually buy.

Knowing your average guest check aids you in making the following decisions:
  • price adjustment
  • making specials
  • costing and pricing
  • creating promotions
There will be times the average check figure dips and this means you have to entice your customers to buy more. Furthermore, your guest check multiplied by your seating capacity multiplied by your turnover gives you your sales forecast. It can also allow you to play around the times you need to fill in or those times the restaurant can be made busier.

Like other restaurant reports, when you know your average guest check, it helps you think of ways to increase your sales and to attract customers.

Monday, February 14, 2011

Price increase or Portion Reduction?


This must be one hard part of being in the food business: balancing your aim to earn vis-a-vis the customer's value.

When menu review comes, a restaurateur is always faced with the hard decision of either increasing prices or reducing portion size so as to keep the price where it is now.

Owners or managers would always be afraid to increase prices since it might turn off customers. They might opt to go to another restaurant instead. On the other hand, reducing proportions is a turn-off as well. Guests often think they've been cheated upon when the portion is not the same as their last visit.

Are you in this same dilemma as well?

Before you decide, look at some factors to consider:

IS YOUR FOOD ADMIRED UPON?
Restaurants whose food is a favorite will probably have less problem incerasing prices and more problems if they reduce proportion. If your food is some kind of a market leader, it is better to increase prices as minimal as you can.

DO YOU HAVE OTHER COMPETITORS WITH BASICALLY THE SAME FOOD?
Same product lines with basically the same taste would put you in a difficult situation.

IS THE ECONOMY WHERE YOU ARE BAD?
You might think increase prices to make up for the lesser market share or reduce proportion to keep customers. Increasing price in this situation would mean making up for the lessened number of guests. Reducing proportion might turn off customers as well thus lessening your profit all the more.

Whichever you decide on, remember to be as discreet as possible. If you're increasing prices, do it in the least amount of increase you can muster. With the inflation and oil price hikes, customers tend to understand non-substantial increases.

If you reduce proportion, it's either you couple it with a price reduction as well. (Think sachet economy. A little of something.) Or if you reduce proportion, try to make it as not very obvious as you can. Reducing proportion but maintaining your price is dangerous sometimes in the food industry especially for high-end products.

Price increase or portion reduction? Weigh your options well and ask your customers about what they think. Whichever you choose, always remember to keep your customers in consideration and not just your own gains.

Friday, February 11, 2011

The Waiter of my Dreams

I was lucky to have my practicum in college in one of the best hotels in Metro Manila, EDSA Shangri-la Hotel, more than a decade ago. I am thankful I got accepted in their program. It was then that I knew why so many students want to get in their trainee program.

We were given the choice to train in ten departments. I chose two restaurant waiter assignments out of the ten. Now I am glad I did because the men and women I worked with were a great inspiration to my work now.

These waiters were great. They were well-groomed, professional and polite. They know the service standards. Most of all, they were the kinds of waiters who knew how to converse with their guests.

I am often frustrated when visiting restaurants where the waiters barely open their mouth at all or who look like they have been hauling tables just before service time.

When restaurants hire waiters, they think of waiters as people who will carry plates and trays from window to the guest's table. That is just not enough. For me, waiters should above all know the SOPs of serving food and should know their menu well. They should be goodlooking and neat. They should be able to engage in a respectful yet friendly conversation with guests. They should put the guests' comfort and satisfaction above all else.

If you own a restaurant, hire someone that can do more than carry trays. Waiters are your representatives. They should be employees you can be proud of.

Wednesday, February 9, 2011

Dining Trends in 2011

Every new year requires a review and a forecast: A review of the year gone by and a forecast for the year ahead.

2011 posts not entirely new trends from 2010. However, it would be important to take a look at how our guests would like to dine this year.

Going light
In previous years, we thought diners would start preferring healthy dishes. But we were wrong. The restaurants that chose healthy are now finding it hard to maintain the attention. Diners are preferring "light", that is, less cholesterol and fat contents but not devoid of some creaminess and savor. Going light would also mean more appropriate or, for some, smaller portions. This is to lessen the intake of more calories and to feel a little bit better about devouring sinful treats.

There might not be any increase in demand for vegetarian dishes.

Liking simple and bold flavors
There is a returning back of simple flavors. Most of them reminding diners of comfort foods, dishes made by grandma, mom's recipe and the like. Maybe comfort food would be a more apt term for this preference. At the same time, diners are more ready to try new tastes, combination of ingredients not done before.

Pleasing to the eye
Taste matters but diners are going to be intense on how their food is plated. With culinary schools, cooking shows and food magaziines abound, diners' eyes are now more demanding than ever. They want a pretty plate, an elegant plate. They want their food to look great while tasting even greater.

Personal cooking
Exclusive, by=appointment-only dining will get more attention. Diners have tried all sorts of restaurants, cuisine and the like. Now they are hungry for even more. Personal chefs and exclusive dining rooms are going to be busy.