YOU BREWED IT, COOKED IT AND SOLD IT NOW WHAT?
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1 YOU BREWED IT, COOKED IT AND SOLD IT NOW WHAT? Jason Weissberg General Manager, Dogfish Brewings and Eats Objectives 1. Define 3 P&L line items to analyze for improved operation efficiency 2. Identify 5 focus areas to improve the bottom line 3. Provide 10 simple actions for costefficiency without sacrificing quality Know Your Business Strategies to measure operational efficiency Menu planning and beverage cost of goods calculator Labor cost calculator Purchasing and receiving safety and sanitation Understand basic practices Solicit cooperation from local health department 1
2 Know Your Business Inspect what you expect You can t manage what you can t measure Identify measurable goals on your P&L Target food/labor cost Sales goals Consistent costs Review key metrics daily Labor percentage Discounts, comps and voids Product mix sales report Manage Your Business Don t let your business manage you Daily routines to achieve daily goals Opening checklist Closing checklist Communication system Revenue Centers Beer Liquor and wine Ordering Who orders? When? From whom? Price compare your purchases Establish ordering pars Regularly update inventory/cost sheets Don t order from the office 2
3 Receiving Pay for what you receive Inspect deliveries Quality, condition, accuracy Properly check in deliveries to ensure accuracy Menu execution Portion, portion, portion Portion according to the recipe Spot check Prep lists with accurate par levels Recipe consistency Utilize P-Mix to establish production pars Sample Menu Costing Sample Menu Costing Ingredients Quantity Unit Unit Cost Extension Tortilla 2 ea $0.06 $0.12 Fish 6 oz $0.26 $1.55 Napa Apple Slaw 1 4 oz $0.59 $0.59 Chipotle Crema 2 oz $0.17 $0.34 Black Beans and Rice 1 4 oz $0.41 $0.41 Ingredients Quantity Unit Unit Cost Extension Tortilla 2 ea $0.06 $0.12 Fish 7 oz $0.26 $1.81 Napa Apple Slaw oz $0.59 $0.89 Chipotle Crema 3 oz $0.17 $0.51 Black Beans and Rice oz $0.41 $0.51 Total Recipe Cost $3.01 Cost per Serving $3.01 Menu Price $14.00 Cost 22% Total Recipe Cost $3.01 Cost per Serving $3.84 Menu Price $14.00 Cost 27% 3
4 Menu Item Sample Menu Costing Quantity Sold per Month Recipe Cost Cost Per Serving Difference Fish Taco 1088 $ $ ($903.04) Portion control is key! What do you do to keep portions consistent? Cost of Goods Formula COG = Beginning Inventory + Purchases Ending Inventory Example: COG COG = $ $3456 $7975 = $3726 sales = $12,500 %FC = $3726/$12,500 = 29% Manage waste Record and track Compare P-mix to inventory Identify variances Organized shelves discourage waste Beer Accurate costs per batch Well-designed draft system Reduce waste Inventory Beverage tracking software 4
5 Beer Account for every drop Give away all you want Empower your staff Compare P-Mix to daily inventory to identify variance Train staff to pour properly Follow up Stock what sells Liquor and Wine Let your customers determine your brands Pour the volume you priced Proper glassware Training Monitoring Inventory Labor Lowering Operating Costs Supplies Chemicals Equipment Purchase Maintenance Managed services POS System Labor Schedule based on your operational needs Monitor labor cost daily Make adjustments quickly Follow the schedule Costs associated with early/late clock in 5
6 Labor Cost Total labor dollar required to operate your business Example: Kitchen Labor Cost All of your labor dollars used to create your food (e.g., cooks, prep, dishwashers) Kitchen Labor % = Labor $/ Sales $2500 salaries/$12,500 Sales = 20% Supplies Non-food and beverage items required to run the business Easiest category to waste money Compare prices Look at the independent operator Items used for their intended purpose Chemicals Most expensive item on your shelf Most frequently misused item Over pouring Mixing Wrong application Equipment Purchase Purchase what you need not what you want Get at least 3 bids minimum on major purchases Staff training Operation Maintenance 6
7 Equipment Maintenance Preventive maintenance agreements Negotiate Know your rates for service Know how your equipment works Troubleshoot before making the call Plugged in? Breaker tripped? Turned on? Scheduled defrost? Managed Services Trash pickup Adjust pickups based on volume Negotiate and compare vendors Consider recycling and/or composting Grease pickup Are you being paid for your grease? Is your current arrangement working? POS System Track and monitor sales accurately Provides useful history Scheduling capabilities Makes examining the business easier THANK YOU 7
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