Increasing Profitability for Foodservice Industry

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Increasing Profitability for Foodservice Industry

• Provided by
• National Pork Board

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General Foodservice Formulas and Cost Saving Tips
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Food Cost Equations

• Food Cost of one Menu Item
• Cost of Item 4.75 37 Food Cost
• Selling Price 12.99
• Food Cost of Entire Menu
• Start Inven.PurchasesEnd Inven. 11070-80
  33
• Total Sales 300
• 33 Actual Food Cost

Source Food Service Managers Guide to Creative
Cost Cutting, 2005
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Theoretical Food Cost Equation
Theoretical Food Cost (Also called Potential
Food Cost )
Source http//www.foodreference.com/html/artfoodc
ost.html, 2009
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Waste Equation

• Compare theoretical food cost (what it should
  cost) to actual food cost to find inefficiency.
• Actual Food Cost Theoretical Food Cost Waste
  
• 33 - 31 2
• (Multiply waste by sales to figure dollar amount
  wasted)

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Causes of Waste

• Portion control
• Returns
• Preparation errors
• Theft
• Inventory tracking (orders vs. receivables)
• Poor product rotation (spoiled food)

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Break Even Equation

• Number of guests required to serve to break even
  
• Total Fixed Costs
• Customer Check Avg. Variable Cost per Guest
• 3000
• 25-10

Source Controlling Restaurant Foodservice
Operating Costs, 2003
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Income Goal Equation

• Number of guests to serve in order to meet income
  goal
• Total Fixed Costs Desired Income Customer
  Check Avg. Variable Cost per Guest

Source Controlling Restaurant Foodservice
Operating Costs, 2003
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Foodservice Cost Saving Tips

• Inspect coolers and freezers to keep food from
  falling behind shelves and spoiling
• Only trim off what is needed when prepping food
• Use meat trimmings for soup stock

Source http//www.ciwmb.ca.gov/bizwaste/factsheet
s/FoodSrvc.htm, 2009
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Foodservice Cost Saving Tips

• Adjust the size of meals if they are constantly
  being thrown out
• Store hot leftovers from different areas in
  separate containers to avoid spoiling

Source http//www.ciwmb.ca.gov/bizwaste/factsheet
s/FoodSrvc.htm, 2009
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Foodservice Cost Saving Tips

• Reuse leftovers within two days of preparation to
  prevent waste
• Use pan drippings from roasting for sauces and
  flavorful stocks.

Source http//www.ciwmb.ca.gov/bizwaste/factsheet
s/FoodSrvc.htm, 2009
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Menu Analysis
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Menu Sales Analysis

• Track what you are selling
• How much of an item was sold?
• The cost of the item
• The profitability of an item
• Number of meals served out of 100

Source Food Service Managers Guide to Creative
Cost Cutting, 2005
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Menu Design Important to Increase Profit

• Layout is importantput best dishes where
  customer will find it
• Consumers first look at the menu is as
  following top, then bottom, then land somewhere
  in the middle
• Explain the dishbe sure to include descriptive
  words while writing menu
• People will pay more for words such as
  full-flavored, natural and center-cut
• Remember your brandmenu must be in line with
  companys brand image

Source Mouthwatering Menu Design by Miriam
Marcus, 2009
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Pork Your Profitability
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Low Slow

• Roasting your pork at a lower temperature and
  slower will mean higher yields, less shrink, and
  juicer pork roasts
• Higher Profit

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Dry Heat Roasting

• Low-Heat Roasting tenderizes, retains juices,
  provides higher cooking yields for pork

• High-Heat Roasting toughens, shrinks, and dries
  out pork, creates uneven degrees of doneness

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Pork as a Substitute

• Experiment with pork as a substitute for other
  proteins
• Pork burgers
• Ham steak
• Pork tacos
• Pork Piccata
• Pork can serve as a less expensive alternative,
  saving you money

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The Benefit of Bacon

• Bacon can be a key profit ingredient on your
  menu.
• _______________________________________________
• When made available to add to a sandwich or salad
  for .50 or 1, profit margins can be high for
  bacon
• _______________________________________________
• Bacon on the menu has increased 33 since 2003

Source Advertising age and MenuMine from
Foodservice Research Institute
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Whole Loin Creates Savings

• When you buy a whole boneless loin and
• cut it yourself, you create many different
• meal options and potentially save money!
• Think Value.

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5 Cuts, 5 Recipes from the Loin
Southwestern Kabobs from cubes
Carolina Country-Style Ribs
Fajitas from strips
Spanish Pork Roast from the sirloin
Tangy Maple-Marinated Chops
All recipes found at www.Theotherwhitemeat.com
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For further information contact

• Stacie Schafer
• sschafer_at_pork.org
• 515-223-3530