Posts Tagged ‘stock control’

Making the most of it

Monday, January 18th, 2010

The recent bad weather may be seen as the last straw for many hospitality businesses on top of what has already been challenging 12 months.  But rather than letting it get you down, make the most of quiet periods, and take the time to put things in place so you are in a stronger position to capitalise when things pick up.

Here are my top ten things you could be doing this week that won’t cost you anything but your time, but will certainly go a long way to your success in 2010.

  1. Set your goals for the year.  Take some time to identify what you really want to achieve in 2010, and establish your plan to do this. You’ll find some useful resources here to help you with this.  Then share these with everyone who has a part to play in achieving them.
  2. Review your staff structure and resources in light of your plan.  Do you have the right people in the right roles to achieve this?  Will you need to hire, fire or develop certain team members to get to where you want to be?
  3. Take stock of your menus and their margins.  What tweaks do you need to generate more profit from each item?  Does your sales mix reflect the high profit items, or are you selling too many of the lower profit dishes? If so does this reflect a need to train your team how to upsell?
  4. Review your stock control systems. Tidy up your stores, take stock of what’s not shifting, what needs using before it goes out of date, and what needs to be written off.
  5. Review your website content. Does it accurately reflect what you are offering and present it in a way that entices your ideal prospective customers to read on and take some action? Do all the links work? (If you don’t already have a content management system – i.e. where you are able to manage the content of your site yourself – you may want to look into this.  I use WordPress for mine.)
  6. Take the customer journey – You and all you team to look at every aspect of your business from your customers’ perspective.  Draw up a list of areas that need attention, priorities and allocate responsibility amongst your team.
  7. Now provides a great opportunity for staff training.  Are all the team up to date on all product knowledge, not just in their own departments, but in all parts of the business.  The customer journey and an analysis of your sales mix may help flag up where knowledge is lacking.
  8. Plan your promotional activity for the whole year, so you can start collating ideas towards each of these promotions.  This includes reviewing your Christmas promotions, whilst they are still fresh in your mind and making notes of how you can improve on this for next Christmas.
  9. Get your customer listing up to date.  (If you don’t already have a contact management system now might be the time to look into this.)  Then get in touch with all your existing customers to remind them how much you value their custom by giving them an offer they can’t refuse.
  10. Review all your customer feedback, whether this is directly from customer comments or feedback forms, or from such sources as TripAdvisor. What can you learn from these, and what are the areas that need attention?

Update your plan and take some ACTION!

Here are some resources to help get you going.

Are you getting the basics right?

Thursday, July 23rd, 2009

With so much focus on increasing sales, are we remembering to keep tabs on our costs too?
Here are my 25 essentials to controlling food costs.
I’m sure there are many more ideas, but these are the basics…..

  1. Plan menus around seasonal availability
  2. Create costing cards for every menu item, and update ingredients costs as they change
  3. Include methods for all recipes, train chefs and provide the right tools to follow these methods
  4. Establish yields of all recipes, and check these are being achieved though production and sales controls
  5. Check suppliers prices before ordering, and adapt menu if costs reduce margin
  6. Only ever order what you need – chef will only be tempted to use more if it’s there, or it goes to waste
  7. Negotiate drop discounts with your main suppliers – if they can save on delivery costs they might be willing to negotiate
  8. Only ever buy products on offer if you know you can incorporate into the menu without it affecting your sales or margins
  9. Check invoice prices against list prices
  10. Don’t accept expensive substitutes for out of stock items
  11. Check all deliveries are complete, adequate shelf life and in good condition – never accept anything which is not to standard
  12. Keep stores tidy, with everything having its own place – it’s far easier to control
  13. Keep stores locked, with access only from those who need it
  14. Ensure stock rotation to avoid spoilage
  15. Take stock regularly, weekly if possible, but as a minimum monthly – to get accurate stock consumption figures (this also encourages low stocks and good rotation)
  16. Keep your menu choice limited to avoid low stock turnover – customers usually perceive this anyway with very extensive menus
  17. Keep records of patterns in menu popularity to help planning and ordering
  18. Batch cook as orders come in to meet demand
  19. Check what comes back on plates – and ask if wastage is due to poor quality or too big a portion?
  20. Keep a wastage book to track all wastage – you’ll be amazed how much goes in the bin and for avoidable reasons
  21. Investigate cost of a blast chiller if you don’t already have one – it could pay for itself in short space of time
  22. Ensure all chefs/service staff are trained in portion control
  23. Supply the right size serving equipment for a standard portion – if a portion of chips is 8 oz and you provide a 10 oz scoop that’s 25% over and your margin gone
  24. Educate staff in the budgets and margins involved in the businesses – if they think you make a fortune on each dish they wont respect food costs
  25. Have guidelines for staff meals and what they can and cant eat or drink
    ….And a bonus point…
  26. Accidents do happen – but ask staff to let you know when there has been anything out of the ordinary to affect wastage

Why reinvent the wheel. I have a range of costing tools and other business management resources, which can be found here.