Reduce Loss with Food and Beverage Cost Control Software

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Some amount of loss is unavoidable in the restaurant industry. Dishes get spilled, or contaminated, or something goes off before you expect it to. Those are some of the costs of doing business in food service. But there are many other ways that loss happens in the food service industry that are much more controllable. By utilizing food and beverage cost control software, you can minimize loss in your kitchen, get costs under control, and help to ensure that your business is profitable.

Monitor Margins

The restaurant and food service industry, more than any other type of business, often operates on razor thin margins. Saving just a few cents on a dish can be the difference between profit and loss. For a restaurant to really know if it’s succeeding or not, it’s important to have a very clear idea of the actual cost of each dish, so that you can make sure it’s being prepared, served, and charged appropriately. If you’re consistently losing a small amount of useable ingredients in every preparation of a meal, that will have a dramatic effect on your bottom line.

Internal Loss

It’s an unfortunate truth that the largest source of loss in any business is internal. Very little of it is malicious, but merely, an opportunity taken. By having processes in place that encourage employees to report all losses as they occur, you are able to keep more accurate inventories, which helps you to create the perception of being watched. Many studies have shown that most people will behave more honestly when know they are being observed. Food and beverage cost control software can help create that perception, and reduce internal loss.

Avoid Spoilage

How often have you reached into your kitchen’s pantry and found an item that you’d absolutely forgotten? One of the important features of great food and beverage cost control software is inventory control. By using software that keeps track of what’s where in your kitchen, you’ll be able to keep track of which foods need to move quickly through the kitchen to avoid being spoiled. You can create dishes which will use up overstock, or put them on special to encourage people to choose them.

Reporting Components

With a small food service business, you might be able to track the basics of your sales and inventory, but as your business gets more complex, it’s impossible to keep track of this without some kind of software; there’s just too much data. Instead of opting for a less specialized software, choose one that will work specifically for your restaurant business. If nothing else, cost control software specialized for the food and beverage industry will have great reporting components that will help you to zero in on where your profits are being lost. The right cost control formulas will help you make sure that you have enough profit margin to keep your business running and profitable, and take a weight off your mind.

Excellent Integration

Don’t waste your time with a software that is going to require you to switch over your accounting programs, or duplicate your work in order to help you out. Make sure that the software you choose fully integrates with your existing data and accounting programs for a truly seamless kitchen software experience. Your time is valuable, and you shouldn’t waste it on busy work.

When you’re looking for a high quality food and beverage cost control software, look for one that combines all of these features to make sure that your kitchen is seamlessly efficient, minimizes loss, and has a clear and consistent understanding of how everything is running.

Big Data is revolutionizing food service

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All businesses depend on interactions with their customers for long term success. From Facebook making decisions about what status updates users want to see to grocery stores understanding what to put on their end caps, Big Data drives their decisions. Instead of the typical data collection methods, where everything is plugged into a spreadsheet that limits how the information can be reviewed, Big Data offers a variety of ways to interrogate information and identify patterns.

Here are just three ways that the food service industry is using Big Data to revolutionize how business is run.

Test & Learn

Word of mouth is no way to run a business. Looking at receipts and asking managers which dishes were most popular is good anecdotal evidence, but to really be sure of whether or not a dish is cost effective, popular, and worth continuing to serve, many food service companies are turning to Big Data. QSR Magazine, in an article about Big Data, talks about how Subway has used one of its locations to test out new menu items and determine their potential success before developing and pushing them out to all restaurants.

Menu Analytics

Anyone who has worked in the restaurant business for any length of time knows that a menu is more than just a list of items that restaurant guests can purchase. Graphic design tricks as simple as putting a box around an item name, or adding the word “succulent” to a description of “fresh fish” can increase orders and change purchasing patterns. But to know if your menu changes have worked, you need to have a clear picture of how many items have been ordered with old and new menu designs.

Big Data can help you discover this information.

Customer Patterns

Training servers and operators to offer add-ons is standard business practice, but some customers express frustration at being asked. Is it possible to anticipate which customers will be interested in suggestions, and which will be put off, by the time of day that they’re eating, or the brand of credit card they carry? Big Data says yes. Big Data can help restaurant and food service managers determine what items will be most successful with certain types of customers at certain times of day.

For businesses within the food service industry, having access to Big Data can help them make their business more cost effective, more successful, and help it to produce less waste.

Tell us how your business already makes use of Big Data!