Minimizing Food Costs for Your Restaurant

Minimizing Food Costs for Your Restaurant

by | Sep 30, 2016 | Business Toolkit, Management

Whether you’re a brand new restaurant that’s just getting started or an established restaurant with a long history of success, controlling food costs is one of your top priorities. You don’t want to deliver anything less than the quality your customers have come to expect. On the other hand, you don’t want to overspend, either! Try some of these tips for minimizing food costs while still providing the excellent quality that every customer expects from your restaurant.

Know What Your Menu Items Cost

Have you ever taken the time to evaluate what each item on your menu actually costs you to create? Check out the individual cost of the ingredients and add them up in order to determine how much you’re really spending on each dish. Some of those premium dishes may end up costing you more than you think! Knowing how much you’re spending on each item will help you determine how you need to change your restaurant spending.

There are some things that are worth offering discounts on, even if the restaurant makes little or nothing on them.

Check Out the Menu

Do you have items on your menu that simply aren’t selling? Are there ingredients that you must purchase on a regular basis, but which often go bad before anyone orders meals that contain them? If so, it’s definitely time to change your menu.

You should also take food costs into account when developing your menu. Are there dishes that are above the regular price point for your restaurant? There are some things that are worth offering discounts on, even if the restaurant makes little or nothing on them, but you should be sure to evaluate the actual use of each of these menu items.

Evaluate Portion Sizes

Portion sizes can have a huge impact on the cost of each dish. If your dish is designed to have four ounces of meat, but the chef often tosses six ounces in arbitrarily, you’re wasting food. Make sure that you have a standard portion size for each dish. It won’t just help slice food costs; it will also help customers know what to expect every time they order their favorite menu item.

You should think outside the box and find ways to use as much of the food you’ve ordered as you can.

Control Your Inventory

Ordering food that ultimately goes bad is one of the biggest wastes of your restaurant’s food budget. Keep an eye on what’s coming in and what’s actually going out. Don’t let yourself run out of key ingredients, which could cause a problem for customers, but don’t over-order, either! Instead, create an inventory system that keeps the right amount of food coming in for your restaurant.

Watch the Waste

There’s a lot of potential for waste in many restaurant kitchens. From careless prep work that results in perfectly good food being thrown away to dishes that use only a portion of a meat or vegetable, then fail to recycle it for later use, you can find yourself throwing food away quickly – and throwing money away along with it. Look for creative ways to use as much of every piece of food as possible.

That doesn’t mean that you should attempt to use things that aren’t typically edible, but it does mean you should think outside the box and find ways to use as much of the food you’ve ordered as you can. Monitor the employees performing prep work to make sure they understand how to use the food properly.

Reducing food waste, controlling your inventory, and changing your menu to reflect the desires of customers and the needs of the restaurant will all help keep your restaurant running smoothly on a lower budget. The more attention you pay to the way you prepare your food, the lower your food costs will be. Often, that means that you can charge less for key dishes, keeping your customers happier, too!

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How to Avoid Surprise Health Inspections at Your Restaurant

How to Avoid Surprise Health Inspections at Your Restaurant

by | Sep 26, 2016 | Business Toolkit, Management

A restaurant can be a dangerous place, filled with razor-sharp cutting utensils, slippery floors, super-heated liquids and bodies moving at lightning speed in a confined area. It’s the type of hazardous environment that is a magnet for health inspections conducted by both the Occupational Safety and Hazards Administration (OSHA) and other workers’ compensation authorities. 

However, it doesn’t have to be this way. The key is to think safety, starting from senior management all the way down to the people bussing tables. It also comes down to something as simple as the design of the restaurant itself. Here are some suggestions, courtesy of Restaurant Hospitality and OSHA, on how the design of your restaurant can go a long way in reducing workplace injuries.

In the kitchen:

  • Buy countertops and cutting surfaces that can be adjusted to the right height for different workers.
  • Install dumbwaiters to transfer food products between floors.
  • Install sinks that are at the height of most workers’ hips. This helps prevent strain in dishwashing.
  • Buy thick rubber mats for use when kneeling.
  • Make sure that all the equipment, utensils, pots and pans needed in the kitchen are within reach of the shortest worker.

In the front of house:

  • Install coat racks at chest height.
  • Install hip-height bar sinks and ice storage at bars.
  • Install computer workstations for ordering that are adjustable with touchscreens.
  • Install lights at ordering computer workstations with dimmers that direct light upward, toward the ceiling.
  • Design at the bar is important, too. The distance between the bartender and customer should measure 22 inches or less.

Workers in the restaurant should:

  • Store heavy and frequently used items on racks that are no lower than hip height and no higher than chest height.
  • Limit very low and overhead storage to items not often used.
  • Rather than bending, stooping or kneeling, work at levels between your hips and chest. You should work in your power zone while sweeping the floor.

Owners and managers should:

  • Create a written safety policy in your handbook. This should address separately the hazards most frequently encountered by employees. Work rules must meet or exceed OSHA standards. Work rules need to be in writing and be distributed to all.
  • Communicate the rules to employees. Ensure management is on board and all new employees are properly trained prior to starting. Implement continued training safety and establish safety committed, view vendor demos and educate workers on most frequently encountered hazards.
  • Take steps to discover violations. Oversee safety inspections, walk-throughs and audits. Watch for hazards or rule violations. Do periodic safety self-inspections.

Eventually, health inspections will find their way to your location, preferably just on a routine inspection and not because of some catastrophic workplace injury involving hot soup. But by using the information we’ve outlined above you will survive your next OSHA visit because you will have substantially reduced your risk profile.

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Best Tips to Advertise Your Restaurant’s Happy Hour

Best Tips to Advertise Your Restaurant’s Happy Hour

by | Sep 23, 2016 | Business Toolkit, Management

At the end of the workday, many people have just one thing on their mind: happy hour! They’re hungry and thirsty and as a restaurant or bar of any type, this is a real asset. The thing you need to know though is how to advertise your happy hour so you can make the very most of it. With this in mind, here are the pro-tips.

Understand Happy Hour’s Purpose

Unfortunately, many bar owners think of happy hour as a stand alone part of their day when it’s really not. Happy hour is a transitional time you should use to drive traffic to your bar or restaurant that evening.

Don’t think of a busy happy hour as a success. While it may help you break even, it’s not a success unless you have a busy lucrative dinner or evening. As such, happy hour is actually a traffic and sales driver. You want this traffic to stay for a full-price dinner, which means you need really compelling advertising for that.

Ramp Up In-House Marketing

You want to create a special place or, at the very least, have posters and signs around your establishment advertising happy hour. Make sure these show a list of the deals you’re offering. This way, even if your customers missed happy hour, they know to come in for it tomorrow.

It’s important you train your team on running a successful happy hour.

It’s also important you train your team on running a successful happy hour so they can turn it into a profitable experience. By investing in walking your guests through a happy hour to an enjoyable dinner or late night experience, you’ll bring in more business. Make sure your staff is ready to offer recommendations, talk up full-priced signature items, and, of course, answer questions about the specials.

Use Social Media to Your Advantage

Most bars and restaurants understand how important social media marketing is when it comes to bringing in customers. However, what many don’t understand is how helpful it is for advertising purposes, especially when it comes to happy hours.

Why? Because lots of people get antsy towards the end of the workday and start playing around with their social media feeds. By tweeting about your daily specials around 3-5pm, you’re reaching potential customers at exactly the right time – when they’re deciding where to go for that after-work drink!

Take your social media post to the next level by including an enticing image of either a food or drink special you’re offering. The visual aspect goes a long way in this respect.

Create More Deals

Since most people don’t go to happy hour by themselves, but instead go with a group of friends or coworkers, offer group deals on appetizers or pitchers. These turn your happy hour into the place they want to go.

Also, don’t forget about the power of bounce back coupons.

Also, don’t forget about the power of bounce back coupons. Giving your customers additional coupons for the next happy hour gives them extra incentive to return!

A Little Something Extra

Although cheap drinks and food are stars in their own right, they’re not exactly unique. To make your happy hour stand out in the crowd, try adding a little something extra. Think karaoke, live bands, trivia or games of some sort.

Whether it’s once a week or once a month, this will not only draw a wider crowd but also extend the amount of time, and money, customers are spending at your restaurant. Plus, it’s just another perk that you can advertise!

Offer a Special Menu

Most of the time, happy hour discounts are on drinks and appetizers that are already on the menu. However, if you spend time creating a menu just for happy hour, customers are more likely to stop by and try these offerings.

If you spend time creating a menu just for happy hour, customers are more likely to stop by and try those drinks or food.

There’s a lot to consider when it comes to happy hour, but the gist is that it should be a unique and relaxing experience for your customers that’s affordable, so they can enjoy it on the reg. Then, it’s all about spreading the word!

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Here’s How Much Your Time Actually Costs

Here’s How Much Your Time Actually Costs

by | Sep 9, 2016 | Business Toolkit, Management

When you’re in hospitality or food service, there’s plenty that demands your time and attention. However, what many fail to calculate is the cost of their time. Take a moment to consider this: what does your time really cost? While it’s not a perfect estimate, understanding what you’re sacrificing by trying to do it all yourself can give you a much stronger picture of what you need to outsource to others.

Calculating Your Value

In essence, the value of your time is expressed by your annual salary including benefits divided by the number of hours you actually work each year.

Value = Annual Salary (+ Benefits) / Annual Hours Worked

If you’re starting your business from scratch and its net worth is relatively low, your hourly cost might be as well. On the other hand, if you’re running a successful restaurant or hotel, you might find that your time is worth more than you think.

Examining the Balance

How much does it really cost to complete a particular activity, whether it’s having your taxes done, cleaning out an old storage room, or taking care of the decor for a new restaurant?

Sure, doing it yourself seems like a great way to shave a little money off of your budget, but that’s only true if your time could not be better used in accomplishing other tasks.

If you’re forcing yourself to work overtime, you’re lowering your net worth – and potentially bringing down the net worth of your business.

The Cost of Experience

Hiring experienced professionals to take care of things might have a higher up-front cost, but it also means that you can be sure the job is done right.

From a new paint job that won’t peel off the walls or need to be redone because you chose the wrong kind of paint to an experienced financial professional to oversee your books, hiring a professional means several things:

  • Less time spent cleaning up mistakes later
  • Greater professionalism
  • Higher levels of accuracy the first time
  • Accomplishing the task much faster than you’d be able to do it

Your contributions to your business are many and varied. You’ve done plenty of things, particularly in the business’s early days. The longer you own your restaurant or hotel, however, the more your time is worth–and the more important it is that you bring in professionals who will help make the most of it.

Sending another individual or hiring out a particular task is a more cost-effective use of your resources.

Your Employees’ Time Matters, Too

Accepting that your time is important is just one step in the process of making the most of your business. It’s also important to acknowledge how much your employees’ time means.

Whether it’s the manager who is the absolute best at dealing with customer complaints or the server who always receives glowing reviews from customers, sending them to take care of menial tasks means that you’re paying their current (higher) salary for those tasks.

In many cases, sending another individual–or hiring out a particular task instead of having your employees complete it–is a more cost-effective use of your resources.

Understanding the true worth of both yourself and your employees is the ideal way to increase your business and make the most of every aspect of it. The cliche is, “Time is money!” The truth is, your time is worth your money. Acknowledging that will make it much easier to decide which tasks are truly worth your time and which ones are better moved to someone else’s plate.

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What a Little Competitor Spying Can Teach You

by | Sep 2, 2016 | Management

Keeping an eye on your competitors is valuable, but it’s something you should definitely be prepared for in advance. Blundering into a competitor’s restaurant and ordering a meal with no preparation is going to lead to little in the way of insight and is very likely to be a waste of time and money. And if you’re sending someone else to do it, you need to be sure that they are equally prepared. Here’s how to get started

Start with a digital stakeout

Examining their web presence and digital marketing materials is an easy way to start off from a safe distance, and it will help you to develop ideas about what to focus in on when you actually go in for a visit.

Check out their website. Put yourself in the shoes of the target customer, or better yet, get the feedback of a few other people who are close matches. Try to determine whether the structure and presentation of the site are enticing and welcoming. Does it provide enough information about the menu? And how well does it work on a variety of devices, from the office desktop to a smartphone?

Put yourself in the shoes of the target customer, or better yet, get the feedback of a few other people who are close matches.

Stalk on social media. Keep in mind that this type of traffic can be faked by services who are hired out for this purpose – a sure sign of fraud is a lot of followers and upvoters who have a very limited posting history and aren’t very active. How are they doing for likes, shares and comments? Is there a consistent theme or style to the posts that are most upvoted and shared?

Google them. Start with just their name, then search for their primary food category in conjunction with their location. Also, look into a few of the results like Yelp and TripAdvisor to see what their customers think. Where do they rank in terms of results? What are customers saying on review sites?

Get some face time

An in-person visit is mostly going to be centered on gauging the staff, the atmosphere and the internal marketing materials. You can get some sense for the quality of their food and beverages, but obviously, this is something that can vary greatly from day to day and from dish to dish. So, here are a few items to take note of.

Eyeball the overall layout. Think about what is appealing to the customer, and what could be interfering with their dining experience. Take note of which aspects of the atmosphere are working well and if this is something you could imitate or create your own variant of. Are the customers enjoying themselves? Does the staff have to waste time with inefficient movement to get supplies? Is it easy for customers to move around or is it a hassle?

Make specific note of what’s going wrong with competitors as well as what they’re doing right – these are the areas you can directly emphasize to customers.

Put the staff to the test. Get a rough head count of the staff, and how it compares to your numbers to provide similar service with the similar atmosphere. Take note of how long everything takes to get done, from initial contact to offering to bring the bill to the table. Is the waitstaff pro-active about refills and checking on customer needs? How do they handle unexpected questions, requests and complaints? What is their general demeanor and attitude?

Look into amenities. Make a trip to the restroom just to see how they’re keeping it up. While there’s no scientific correlation between a dirty restroom and a dirty kitchen, customers certainly get a negative impression of the establishment from the condition of the restroom, to the point that a nasty restroom can cause up to 30% of business to never return.

In some cases, several different visits will be appropriate to gather all of this data. It can also be helpful to have your staff pick up a variety of meals to get a better sense of the food quality. During all visits, most critically, make specific note of what’s going wrong with competitors as well as what they’re doing right — these are the areas you can directly capitalize on and emphasize to customers.

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How To Create An Excellent Restaurant Menu

How To Create An Excellent Restaurant Menu

by | Aug 26, 2016 | Business Toolkit, Management

Lots of people remember a restaurant from their past or even in their present in which they enjoyed a neighborhood kind of aura, friendly, laid back with some of the best food on the planet. The food might have been a mix of your everyday sandwiches and a steak to die for, or the food could have been something a five-star chef would turn out. The menu was a typed list of the food and its description, every now and then paired with a wine or beer to complement the food. The ambiance might have drawn people to the restaurant initially, but the food kept them coming back for more. Times change, though, and menus reflect that change. If you need to know how to create a good restaurant menu, we have five tips that will help.

1. Create the goal of the menu

A menu should represent the personality of the restaurant. Your brand is at stake, here, and the diner will recognize this in the menu. Diners should be impressed with the presentation and be ready to recommend the restaurant to one and all. We know that’s a tall order, you should pardon the pun, but take a look at American restaurant Cracker Barrel’s menu: homestyle fixin’s, Grandpa’s Country Fried Breakfast, fancy fixin’s, wholesome fixin’s –  we’re sure you get the idea. The whole aura is homey, comforting and the food filling for a great price.

Tip: Your menu should be logical. Begin with appetizers, followed by entrees, perhaps fixin’s, desserts then drinks. Pictures help, but don’t overload the menu. Just a few pictures and a personality-indicating description will do just fine.

2. Do your homework

You’ll need to research how a successful establishment presents its menu. Check online as well as the brick and mortar store. Figure in your own financials, marketing and potential sales. Look up either online or in a library professional publications describing what’s new and selling wildly in certain areas. Additionally, you’ll need to decide your personality. Shall your establishment be a beanery, a classy joint or quick-natured?  What do you do well, and will it sell in your area? Compare pricing, too.

Tip: Balance your food costs by offering several dishes using one ingredient. For example, if you offer a burger, offer to top it with ingredients from other dishes such as lobster, shrimp, gourmet cheeses, specialty sauces like truffle aiola, and even bacon and eggs.

A menu should represent the personality of the restaurant. Your brand is at stake, here, and the diner will recognize this in the menu.

3. Come up with a design

The eye follows many things, among them light and color. Highlight your specialties or any new ideas you’re trying out. Keep it simple. Stick to one easy to read font. Don’t make the menu sixteen pages; this annoys diners, who must search for what they want. One or two nicely typewritten pages tell diners what is available with no fuss. Remember that if you laminate your menu, you can’t change it without going back to the printer. Plastic covers allow you to update or change menu items when needed. Having more than one menu isn’t expensive, and it makes things easier on diners when they don’t have to get past breakfast items to get to lunch or dinner items.

Tip: The color of your menu should reflect the personality of your restaurant. For example, reds and yellows would feel natural in a restaurant serving spicy dishes, while blues and silvers would better suit a seafood restaurant. Place pictures or a special label around specialties or new menu items. Offer a variety of prices to suit a variety of diners. Keep the descriptions short and sweet.

4. Avoid mistakes

We’ve all handled menus that were taller than we were, heavy ones we almost couldn’t lift and menus that presented too much color or pictures for us to take in. Mistakes you want to avoid include making your print too small to read, excluding English terms for foreign dishes, menus without daily specials or weekly specials, and using generic clip art from the Web to illustrate dishes that won’t look like the pictures when they arrive.

Tip: You only get one chance to make a good first impression. Ensure your menu presents your restaurant’s personality without all the hype.

Analyzing which dishes sell the best and which are slower in comparison to your competition should enter the pricing picture.

5. Price it right

Items like certain meats and cheeses tend to fluctuate in price, and we mean going up not down. Keeping this in mind, price your dishes competitively with other restaurants of your type. If the prices of your ingredients go up, cover it by raising prices by a dollar or two. Most diners won’t notice a slight rise in price, but they’ll know instantly if a six to ten dollar price increase will strain their budget. Not everyone can afford filet mignon, so offer dishes lower in price but just as tasty.

Tip: Examine your menu from a customer’s point of view. Taking pictures of the food will give you an idea if the dishes are worth what you’re charging. Analyzing which dishes sell the best and which are slower in comparison to your competition should also enter the pricing picture.

How your restaurant is perceived by diners begins with your menu. Making it attractive, fun and properly priced is essential to weather the changes happening in restaurants today. Want some menu design ideas? Head over to Envato or Graphic River to browse and download.

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