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Old 12-03-2009, 01:55 PM   #1 (permalink)
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Default Cost Control and Profit

By relentlessly focusing on your Prime Cost (labor, food, liquor) within days of the close of your fiscal WEEK, management can identify and control any unexpected uptick in your major cost center areas. Since the average restaurant spends 60-70% of every sales dollar in the Prime Cost area, just a one percent savings in food, one percent in liquor, and one percent in labor can save a restaurant achieving $1,500,000 in sales over $30,000 per year!
 
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Old 12-18-2009, 01:02 PM   #2 (permalink)
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Default cost control and budget again

remember it is easier to move cogs % earlier when the numbers are smaller, i think the trick is to start well at the begining and stay there. When I was a KM my managers and I would work a hrly position on Monday lunch. A slow day , we would stay in touch with the processes and because of the VERY low hrly labor % we always started off the month or week well below budget, and because of this we were able to slip up at times later and still be where we needed to be to budget. I ran the lowest labor in the company of 30 stores for 8 straight months.

As a cost controller I tried to spend money on the backside of revenue. Rather than spend on the front side and end up hoping for the sales needed to stay within budget.
 
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Old 01-13-2010, 08:21 AM   #3 (permalink)
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I have learned and set up my operational calendar to run from mon - sun. doing all my inventories, purchases, and payroll on sun night or early mon morning. That gives me a overview of the week. But I also use a daily snap shot where I can see my labor, purchases and usage for the day. Sometimes this might seem like micromanaging, but it sure help you keep your fingers on the heart beat of your business, especially if you have multiple sites or venues. I also have found this an easy way to diagnosis problems with existing restaurants who are loosing money. I agree It is easier to catch problems on the front end instead of the back.

Jack
 
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