Top 6 Tips for Managing your Restaurant Effectively

The restaurant business is one that only thrives with the help of good management and professional employees. When dining out you know how easy it is to become annoyed with poor service and bad food. As a manager, you must always be on the lookout for ways to improve the quality of the food and employee performance to keep customers happy. Below are the top six tips for managing your restaurant effectively.

1) Lead By Example

In order to be an effective manager, you must show your employees what good customer service looks like. Have them observe you interacting with customers. Ask the customers if they are having a good experience and thank them for coming. This shows your employees what you expect them to provide in order to ensure customer satisfaction.

2) Quality Service

There should be a standard operating procedure in place so that each employee knows your standard for providing service. Someone should greet the customer immediately upon entering the restaurant. Their drinks order should be taken no later than two minutes after being seated. The waiter or waitress should check in on their customers every few minutes to ensure their glasses are full and they are enjoying their meal. Be sure not to overdo this though; a good server will be able to judge how much interaction a client is comfortable with. Going above and beyond will keep the customers coming back. Make quality service a priority.

3) Friendly Environment

Every manger should be aware of their work atmosphere. It is your job to make it pleasant for both the customer and your employees. Look for ways to continually improve on communications with your employees and let them know you are available to talk if they have any issues. Hire the best employees you can find and treat them with respect. This will ensure that they are content with their work, which will make the customer experience that much better.

4) Keep Costs Down

One of the biggest problems that you may face is keeping the cost of running your business within your budget. Keep accurate records by tracking the costs of food, labour, and other expenses. Ensure that you review your expenses periodically to ensure that you are meeting your goals and keeping costs down.

5) Discipline and Reward

Taking care of your employees sometimes requires discipline. In accordance with your employee handbook ensure that when rules are broken, the employee responsible is disciplined quickly and properly. This let’s everyone know that you mean business and following the rules is mandatory. The same goes for rewards. When an employee does something great, be sure to recognize them and let their peers know as well. This goes a long way in letting the employees know you are paying attention to their hard work.

6) Exceptional Food

No restaurant can survive by serving bad, cold, or otherwise unacceptable food. Make sure that every plate served to your customer is of the highest quality. If, there is a problem with a customer’s meal, work to replace it immediately. The customer will be happy you will get repeat business.

Being a good manager is more than just showing up. Taking care of the customers and employees keeps the restaurant running smoothly and keeps you in business.

For more info on Ideal Software’s Inventory Management system for controlling food cost IdealStockControl

November 2012 Issue of Ideal Software's Niche Notes, our FoodService industry newsletter.

IdealSoftwareNicheNotesNovember2012

This is a guest post from Ian Said, founder of idealsoftware.co.za, a software development company specializing in Inventory Control and POS reporting solutions. Follow Ian on Twitter @costofsale or email Ian info@idealsoftware.co.za.

Using Inventory Control Effectively

July 2012 Issue of Ideal Software's Niche Notes, our FoodService industry newsletter.

IdealSoftwareNicheNotesJuly2012

9 Tips for Choosing the Best Catering Staff

Whether you’re looking for a staff to prepare and serve food at a family function or an exquisite wedding reception, following some tips will help you to hire the best staff for your soiree.

1. Narrowing the Options:

If you live in a highly populated area, dozens of food service providers might exist. Ask for recommendations from family members and friends. You should also check out reviews via online websites / searches to see how the company fares in the grand scheme of things.

2. Menu Options:

When you’re hosting a braai/barbecue, you probably don’t want a company that only makes heavier foods best prepared in an oven, such as turkey and mashed potatoes. On the other hand, opting for a platter of sandwiches and potato salads is not the best idea for an elegant wedding reception. Make sure the style of the company matches your needs.

3. Cleanliness:

Visit the physical location of the food service staff and assess how clean the space is kept. If it’s dirty in there, chances are your food is not going to be of the cleanest and freshest variety.

4.Dietary Restrictions:

When members of your group have certain dietary restrictions, you must make sure the cooking staff can accommodate them. For example, if certain members of your party keep Kosher, see if special Kosher meals can be prepared for them. If some individuals are allergic to shellfish, make sure that none of the food is cooked near or with any shrimp, clams, crabs and so forth.

5. Cost of the Service:

One of the biggest concerns for many people when they are hiring individuals to staff their party is the cost. You want to know what the cost of the food is going to be. Be honest about your budget. In the event that you’re unable to afford the particular company, ask if they have packages that are more suitable to your budget.

6. Value of Customer Input:

Once you begin working with a company, you want them to value your input as opposed to just taking over the process. You may have a specific sauce recipe that you’d like them to follow. Ask how much input you’re allowed to have before booking the company.

7. Size of the Staff:

You also want to make sure that the staff can handle the party. Ask how many servers and cookers will be on staff the day of the party. If you’re having a 100 person function, one server is certainly not going to be enough.

8. Tastings:

Before booking with a food service company, find out if you can do a tasting. The only way to know if the food truly pleases your palate is to try it out!

9. Go With Your Gut:

It may be cliche to say “Go with your gut.” However, gut feelings are often right. As a human being, you can often pick up on people being dishonest or trying to swindle you. When you’re preparing for a party, you need to feel comfortable with all of the vendors, so choose a company about which you have a good feeling.

The food service staff is just one of the elements involved in planning that perfect party. Picking the best one in the area ensures that this area of the event will be a big hit that people talk about for years.

For more info on Ideal Software’s Inventory Management system follow the link IdealStockControl

If you enjoyed this article, please click on the Social links below and “Share the Knowledge”. Thanks!

The Importance of Social Media for Restaurant Profitability

It is uncommon now for a business person not to have heard of the importance of using social media in marketing their company. Since your customers are using social media to see what people are saying about your restaurant / food service establishment, if you don’t have a business development plan that includes social media marketing, then you losing out!

What is Social Media?

In a nutshell, social media are those social networking sites where individuals congregate to connect with friends and family; sites like Facebook, Twitter, LinkedIn and the newest addition, Pinterest, to name just a few. With so many people with similar interests congregating in one place it is no wonder that the business world quickly caught on to the importance of having a presence on these websites in order to promote their businesses. Facebook alone has 900 million users worldwide. Twitter has 200 million users worldwide. Another social media avenue to consider is your own website with a blog.  Having your own blog allows you to gain more advertising foothold in the social media world.  Blogging is often free or has very little cost associated with it, although there is a real time commitment to blogging.

How Social Media can affect your FoodService Business

One way to utilize social media when it comes to the food service industry is to ensure that your business has a presence within the social media structure.  For example, by using YouTube and Twitter channels to broadcast your company’s latest updates you can drive more traffic to your website or to your business itself.   By having a Facebook page you can ensure that your presence will be felt on Facebook, and that when you purchase selective advertising blocks on Facebook, that your ads will be seen by those who are most likely to increase your sales. One of the primary benefits to using social media – especially when it comes to food service businesses – is as an interactive two-way conversation with your customers; a means of getting input directly from them with regards to your food, service, location, cleanliness and any other aspect of your business.  Being able to determine how your customers really feel about your food service establishment can help you learn from them and to strike the right balance in your business. Engagement is the biggest key behind social media strategy.

Why Social Media Matters

No matter what marketing strategies you employ, the biggest advantage to social media marketing is in connecting and engaging with your customers; in making them feel as if they are a part of your business.  When your customers obtain instant updates in their email or on their Facebook page they feel as if they are involved in what is happening.  This is a feeling that does wonders for promoting customer and brand loyalty, even when it comes to an industry as volatile as that of the food service industry. But don’t take our word for it.  Look into what the leading social media sites have to offer in their corporate or business advertising sections and see if any of their options could potentially be used to promote your own business and to generate customer traffic.  You may find yourself pleasantly surprised at the results. Above all remember that social media requires patience, insight, some skill, and a clear understanding of your goals and of your audience.

What social media sites is your business using to connect and engage with your customers? 

For more info on Ideal Software’s Inventory Management system follow the link IdealStockControl

If you enjoyed this article, please click on the Social links below and “Share the Knowledge”. Thanks!

April 2012 Issue of Ideal Software's Niche Notes, our FoodService industry newsletter.

IdealSoftwareNicheNotesApril2012

5 Tips for Building Customer Loyalty

Owning and operating a restaurant in today’s economy can be a challenging proposition, which is why it is so important to build customer loyalty.  In truth repeat customers make up the bulk of any restaurant’s customer base and word-of-mouth advertising can do wonders for building up your clientele.  But how do you go about building customer loyalty in the restaurant industry?

While any one of the following five suggestions will help to increase your business, implementing all of them is highly recommended and definitely possible given a little time and planning.

Tip #1: Atmosphere is Everything

For dine-in customers the atmosphere of the establishment can rate right up there with the quality of service and nearly as high as the quality of your food.  But when you think of atmosphere, think more than the decorations and table linens; think also of an atmosphere of one-on-one recognition.  Customers like nothing better than visiting an establishment where they are recognized and called by name.  Encourage this kind of recognition in your staff.  Everyone from your bus boys to the chefs should be able to recognize repeat customers and make them feel comfortable.

Tip #2: Reward Your Repeat Customers

A customer rewards program for repeat customers is a must if you really want to establish your credibility with your repeat customers.  Perhaps a customer loyalty card (with a free meal after so many purchases) or coupons for a discount on their next meal purchased.  There are a number of options available when it comes to customer rewards, and each of them is worth the time and effort you will put into it.

Tip #3: Start a Newsletter

Believe it or not, many customers really do pay attention to what goes on in their local neighborhoods.  By starting a newsletter you can keep yourself firmly in their minds by their seeing your weekly or monthly newsletters in their email inbox.  This mailing list will also help to establish a list by which you can send out offers for discounts and special ‘group’ purchases or birthday discounts or other options, but the set up of a newsletter to address local concerns (and those specific to your restaurant) can be a viable option for asking for the emails.

Tip #4: Drawings and Giveaways

Having drawings and giveaways for repeat customers is a great way to keep them coming in.  Have a business card drawing for your lunchtime business clientele, or a random once a month door prize raffle where someone who came in during the course of an evening will receive a free meal for two, or free desert with their next purchase or something similar.

Tip #5: Reward Referrals

If a repeat customer refers a new customer to your restaurant, why not reward them?  Perhaps a coupon for free deserts the next time they come in, or even something as simple as a thank-you letter; something to let them know that you appreciate their support.

Truly, your repeat customers are the bread and butter of your business, so why not take the time to ensure that you do everything in your power to win their loyalty?  Not only will you be increasing the chances that they will keep on coming back, you’ll most likely gain new customers as well from their referrals, and that can be a very good thing.

Does your restaurant use any other strategies? Leave a comment below and let us know.

For more info on Ideal Software’s Inventory Management system follow the link IdealStockControl

March 2012 Issue of Ideal Software's Niche Notes, our FoodService industry newsletter.

IdealSoftwareNicheNotesMar2012

Technology Gap in the FoodService Industry

It is understandable that the concepts of “foodservice” and “technology” are not necessarily deemed as a likely fit, but the fact is, foodservice are more dependent on technology than most restaurateurs realize, and foodservice as a whole lags far behind when it comes to incorporating technological advances into their marketing and operations.

When thinking technology in foodservice, there are the obvious items like state-of-the art stoves, ovens and microwaves, which will allow you to cook your food faster and more efficiently than older models, but then there are the not-so-obvious types of technology; such as computers and the software that is run on them as well as interactive digital signage or even an up to the minute website.

Obviously, the slim to modest gains that most restaurants see leave them little to no room for sophisticated gadgetry, but as the next generation of consumers (those who have been immersed in computers and computer technology since birth) come of age, they will be expecting something more sophisticated than the same old thing that has been around for generations.

Benefits of Technology

And yet, more importantly than the expectations of an upcoming generation would have to be the benefits that even the smallest restaurants would gain from 1) developing a web presence and 2) from installing (and taking advantage of) the latest in computer software aimed at inventory tracking and restaurant management.

Let’s look at these separately.

Comprehensive Website

When it comes to establishing a web presence, it’s really quite simple, if your customers can’t find you, they can’t buy your food.  With a whole new generation of consumers who never bother to open a Yellow Pages, it can mean the difference between life and death for a restaurant if they don’t opt to develop a solid web page that advertises their establishment and which is searchable not only from a desktop computer, but by mobile searches as well (a technique that you will most likely need a professional web developer to achieve). Remember to stay away from heavy “Flash” websites. Why? Because Adobe Flash, the much-heralded plugin providing music, animation, video and interactivity to websites isn’t supported by many mobile devices.

Computer Software

As for the computer software for restaurant management and inventory tracking, the benefits should be obvious.  By streamlining your operations and by establishing an inventory tracking system that calculates even the smallest details, you can save yourself a significant amount of money and develop new methods and techniques of staff and resource management (as well as food preparation) that will enable you to increase your profits.

While more and more of the larger chain restaurants are making the jump to high-tech (both websites and software) many small establishments are being left behind, unsure of how to proceed, or unwilling to invest in something they have (before now) never needed.  But even with the transition under way, the food industry as a whole lags far behind other businesses when it comes to technology.

Is your restaurant utilizing the many benefits of technology? Leave a comment below.

For more info on Ideal Software’s Inventory Management system follow the link IdealStockControl

February 2012 Issue of Ideal Software's Niche Notes, our FoodService industry newsletter.

IdealSoftwareNicheNotesFeb2012

101 Ways to Deal with Food Cost - Part 5 - Security & Safety

In this month’s Food Cost article we take a look at “Security and Safety” when dealing with restaurant food cost problem areas, part 5 in our current series “101 Ways to Deal with Food Cost”.

The food is great, the service fabulous and the restaurant is busier than ever, but are you wondering why the bottom line isn’t all it should be? Check your FOOD COST! Here are possible food cost problem areas:

Guest Check and Cash Drawer Security

Never make an outgoing check to cash, and don’t accept them either. With a ‘cash’ check anyone could deposit the check as his or her own, or worse: the receiver of the check could bank it and claim it never arrived. Your check is always your last chance for a receipt, and security of that check is paramount.

Bank Deposit / Accounts Payable

Proper auditing of bank deposits and charges slips must be conducted to ensure all deposits were made and to account for missing checks. Upon receipt of the bank statement, don’t put it aside for your accountant; reconcile it yourself and you will gain new insight into the business and close the last loophole where money could escape.

Kitchen Safety Procedures

Ensuring your patrons and staff aren’t injured on the premises is more than a matter of caring for their well being; it’s an essential part of avoiding a business threatening lawsuit and lengthy downtime. Labour and food saving, insurance saving, workers’ compensation reductions and sick pay savings, not to mention staying out of civil court, all come from putting safety procedures in place and sticking to them.

The High Cost of Food-Borne Illness

Food-borne illness cost lives and money. According to the FDA, millions of people become sick each year and thousands die after eating contaminated or mishandled foods. Children, the elderly and people with weakened immune system are especially vulnerable to food-borne illness.

What makes food unsafe?

Hazards can be introduced into Foodservice operations in numerous ways by employees, food, equipment cleaning supplies and customers. The hazards may be biological or physical.

What can you and your staff do to prevent Food Borne Illness? An important part of the production is keeping food safe. Make sure you have HACCP procedure in place and train your kitchen staff in food safety.

Weighting the Risks

Certain foods and food service procedures are more hazardous than others. High protein foods, such as meats and milk based products and foods that require a lot of handling during preparation require special attention by food service operations. Roast beef, turkey, ham and Chinese foods, for instance, have been linked with more outbreaks of food-borne illness than pizza, barbecued meat or eggs salad, yet all of these foods are considered potentially hazardous. Other foods, such as garlic in oil, rice, melon and sprouts, also have been linked with outbreaks of food-borne illness.

Hand Washing Exercise

Ensure employees wash their hands. ‘Are your hands really clean?’ Hand washing is perhaps the most critical aspect of good personal hygiene in food service. Workers should wash their hands with soap and warm water for 20seconds. When working with food, they should wash gloved hands as often as bare hands. Hand washing is a simple yet effective method for eliminating cross contamination.

Cautions for Cold Foods

When you are preparing cold foods, you are at one of the most hazardous points in the food preparation process. There are two key reasons for this: First, cold food preparation usually takes place at room temperature. Second, cold food is one of the most common points of contamination and cross-contamination.

Food Irradiation

You should know that if you buy irradiated food, it will cost more. Industry experts estimate the increase at 2-3 cents per pound for fruits and vegetables and 3-5 cents a pound for meat and poultry products. But these costs may be offset by advantages such as keeping a product fresh longer and enhancing its safety. However, the treatment will also bring benefits to consumers in terms of availability and quantity, storage life convenience and improved hygiene of the food. Federal rules require irradiated foods to be labeled as such to distinguish them from non irradiated foods.

For information on Ideal Software’s Stock Control system for monitoring Food Cost IdealStockControl
Part 1 in our series “101 Ways to deal with Food Cost” 33 Possible Food Cost Problem Areas
Part 2 in our series “101 Ways to deal with Food Cost” Back to Basics
Part 3 in our series “101 Ways to deal with Food Cost” The Menu, Pricing & Standardized Recipes
Part 4 in our series “101 Ways to deal with Food Cost” Purchasing and Receiving

Motivating Staff in the Restaurant Industry

When it comes to motivating and keeping staff happy in the restaurant industry, there is one thing that is a must; throw the advice of the motivational gurus out the window.

That’s right, while much of the advice offered by motivational speakers and advisors is great when it is applied to the workforce in, say, a corporate or business setting, the restaurant industry is a whole different world.

While the dynamics between management and staff is similar to what you find anywhere else, and while there is plenty of interaction between staff members themselves, the primary focus when it comes to motivating and keeping staff happy in the restaurant industry is in making them feel as if they have a vested interest in “their” restaurant’s continued success and reputation.  Easy enough to say, you may think, but how do you put that into practice?

Motivating your staff is a fairly straightforward matter; it depends entirely on giving them something to be proud of.  Emphasizing the quality of your customer service and bragging up your staff to your clients will give the staff something to live up to, and will instill a sense of loyalty and pride.  This can be done in a dozen different ways.  A handful are listed below which may help you get started in the right direction. But before you can even begin to reward or motivate your staff, you need to “understand your target market”.

Many of your employees are considerably younger than you are and their idea of The Future or A Reward may differ greatly from yours. To you the future is next year or next decade or maybe the end of your lease. To the young people who work for you, the future is tomorrow, Saturday night or just maybe next summer. Reward? Well nothing satisfies like instant gratification. Carry a few prepaid cell phone vouchers or maybe even lotto tickets and reward your staff on the spot. And if they win? Well hopefully they will buy you out and YOU can stop worrying about the future.

Employee of the Month/Quarter/Year: 

Having an employee of the month/quarter/year program is a great way to show your staff AND your customers just what a great staff you have.  Fair warning, however, words are not enough.  Put their picture on the wall with a short bio that explains why they were chosen, but to double the impact, make it worth the employee’s time.  Perhaps a cash gift or a gift card can help with motivation.

Have an “Employees in the News” wall: 

Every community has its share of events; things like sports competitions, high school and college graduations and other events that make it into the newspaper.  Display your employee’s achievements outside of work in a prominent place; let it be known that you care about their life outside of work and want them to do well.

Reward for Work Well Done: 

It seems as if every industry focuses on the negative, taking away tips or bonuses for poor quality work, or docking hours for mistakes.  This, however, tends to rebound negatively in the end, so why not start off on the right foot and reward for work well done?  If one of the wait staff agrees to come in on their day off, match their tips for the day as a gesture of good will, or hold a contest for bus boys for the most tables cleared each day.

Work Sponsored Events:

There is nothing like camaraderie to instill a sense of loyalty in one’s staff, which is why it is always a good idea to get involved in community events.  Put together a softball team, or a bowling team made up of staff members and then use their activities as a focal point for getting the rest of the staff together regularly (the focus being on fun, not work!).  You’ll be surprised at how quickly they become motivated.

Walk the Talk:

If you want to be an inspiration to your staff you must walk the talk. Be an example of what you want from others. Don’t blow your top if you have a bad day. If things go wrong, deal with it calmly; and always be energetic even if you don’t feel like it. Consistency is key.

Conclusion:

In conclusion, you won’t have to limit yourself to just those motivational suggestions listed above, let your imagination soar, and see just how quickly your staff changes their tune and becomes truly interested in ensuring “their” restaurant does well!

For information on Ideal Software’s Stock Control system for monitoring Food Cost IdealStockControl

Ideal Software Season's Greetings

Ideal Software thanks their customers for the support received throughout 2011.

IdealSoftwareSeasonsGreetings2011

101 Ways to Deal with Food Cost - Part 4 - Purchasing and Receiving

Part 4 in our series “101 Ways to Deal with Food Cost” deals with Purchasing and Receiving, providing useful tips in dealing with food cost in these areas.

Purchasing Tips:

The goal of purchasing is to obtain wholesome, safe foods to meet your menu requirements. The operation must have food to serve customers when needed. The food needs to be the right quality consistent with the operation’s standards and purchased at the lowest possible cost.

Inventory Levels

The first step in computing what item to order and how much you need is to determine the inventory level, or the amount needed on hand at all times. This is a simple amount you need to order, you must first know the amount you have in inventory. Walk through the storage areas and mark in the “ On Hand” column the amounts that are there. To determine the “Build to Amount” you will need to know when regularly scheduled deliveries between deliveries. Add on about 15% to the average amount used; this will cover unexpected usage, a late need to order is the difference between the ‘Build to Amount’ and the amount “On Hand”. Experience and food demand will reveal the amount an average order should contain. By purchasing too little, the restaurant may run out of suppliers before the next delivery. Ordering too much will result in tying up money and putting a drain on the restaurant’s cash flow. Buying up items in large amounts can save money, but you must consider the cash flow costs.

Purchasing and Ordering

What exactly is the difference? Purchasing is setting the policy on which suppliers, brands, grades and varieties of products will be ordered. These are your standardized purchase specifications; the specifics of how items are delivered, paid for and returned. These specifications are negotiated between management and distributors. Basically, purchasing is what you order and from whom. Ordering, then, is simply the act of contacting the suppliers and notifying them of the quantity you require.

Purchasing Specifications

By creating purchasing specifications, you can control which items you purchase and you can maintain which items you purchase consistency. This information is extremely important if you have more than one person that does ordering in your operation.

Purchasing and Inventory Software

Purchasing and Inventory Software is readily available to restaurant operators. Many larger organizations are using inventory control software that saves a significant amount of time and money. Most managers are used to the monthly grind, standing in walk-ins counting eggs, butter pats and frozen chickens. With inventory control software, mangers can use a laser scanner, similar to the ones used in grocery stores, to scan bar codes. The software can also be linked to your distributors and you can place your orders electronically based on the inventory.

Inventory, Storage and Accounts Payable

Ordering effectively is impossible unless you are completely familiar with the inventory items. Prior to orders being placed with vendors, counts of stock need to be established. Software programs are able to determine order quantities based upon par balances and sales figures.

Perpetual Inventory

Perpetual Inventory is a check on the daily usage of your main entrée items from freezers and walk-ins. This is for tracking expensive items, such as meat, seafood, chicken, cans of caviar, etc. When completed, the perpetual inventory will ensure that no bulk products have been pilfered from the freezer or walk-ins.

Purchasing Kickbacks and Gifts

Unfortunately, the food service industry is notorious for kickbacks. It is even more unfortunate that these kickbacks or gifts are essentially paid for by you in the form of higher prices. You need to ensure different employees receive and purchase stock as well as check prices regularly.

Here are some ideas to help keep kickbacks out of your store by ensuring different employees receive and purchase stock as well as check prices regularly.

Receiving Tips:

 

Plan ahead

Plan ahead for deliveries to ensure sufficient refrigerator and freezer space.

Mark all items for storage

Mark all items for storage with the date of arrival or the ‘use by’ date.

Delivery Truck

When Delivery truck arrives, make sure it looks and smells clean and is equipped with the proper food storage equipment. Then inspect foods immediately.

Reject food that has been thawed and refrozen

Look for signs of thawing and refreezing, such as large crystals, solid areas of ice or excessive ice in containers.

Content damage

Look for content damage and insect infestations.

Invoice accuracy

Check the accuracy of the invoice with regard to the purchase order, specifically price, damage, quality, quantity, brands, grades and variety. Items that are not correct need to be noted and returned before the driver leaves and the driver must sign the form. The vendor’s invoice also should be checked against the actual purchase order.

Check temperature

Check temperature of refrigerated and frozen foods, especially eggs and dairy products, fresh meat and fish and poultry products.

Keep all flooring clean

Keep all flooring clean of food particles and debris.

Calibration

Calibration makes sure all scales and thermometers are in place and calibrated.

Remove empty containers

Remove empty containers and packing materials immediately to separate trash area.

For information on Ideal Software’s Stock Control system for monitoring Food Cost IdealStockControl

To view Part 1 “101 Ways to deal with Food Cost” 33 Possible Food Cost Problem Areas

To view Part 2 “101 Ways to deal with Food Cost” Back to Basics

To view Part 3 “101 Ways to deal with Food Cost” The Menu, Pricing and Standardized Recipes

Importance of Inventory Management for Restaurant Profitability

The importance of inventory management for restaurant profitability cannot be stressed enough. Without being able to effectively manage the flow of foods and supplies in an effective manner, the chances of making any sort of significant profit from your food service shrink significantly.  But how does one effectively take control of their inventory?

What Constitutes an Inventory?

It may seem like a rather inane question, but the question of what constitutes an inventory can play a significant part in helping a restaurant to achieve profitability.
When it comes to a restaurant’s inventory, it is important to realize that you are not only talking about the food itself, but about the food items used to cook or process the food (shortening for deep frying, seasonings, drinks, garnishes etc.) but also about the items used to prepare and present the food and to set the atmosphere (paper placemats, plastic flatware, straws, napkins, disposable cups etc.).
Being aware of what products you use in your day-to-day services as well as how many you use and the cost of each product (as well as how that cost translates into the cost of sale passed on to the customer) all come together to create the ‘big picture’ of your inventory and what you need to have on hand in order to maintain the integrity of your service.
But the most important thing that any restaurant owner can do, however, is to find a way to not only organize their inventory, but to maximize their tracking of foods and supplies as well as streamline their re-ordering of needed items.

The Need for Organization

There are four main points that you need to address when considering the organization of your inventory;
1)  An accurate list of what you have available to use.
2)  An accurate assessment of how much you will use on a daily or weekly basis.
3)  A means to be able to track this usage for accuracy
4)  A quick and effective method of re-ordering or restocking your inventory.
While it is quite possible to list and track all of this information manually, it is far more efficient and effective if an electronic inventory management system is put into use.

The Importance of I.T. in Inventory Management

Information Technology has come a long way in a very short length of time.  Some of the programs available today to help restaurant owners in assessing, organizing, prioritizing, tracking and reordering their inventory make the old ways of inventory management look torturous by comparison.  Modern IT inventory management software systems can ensure that a restaurant’s inventory is managed as effectively as possible, resulting in significant financial savings.

What Streamlined Inventory Management Means to You

The more efficient your overall inventory system is the smoother your food production process will be; the more customers you will be able to serve in the same period of time, and the quicker you will be able to replace the supplies used so that more food can be prepared and more customers served.  The end result, of course, is that by the most effective use of your restaurant’s inventory management, the higher your restaurant profitability will be, and in this economy, that is definitely something to cheer about.

For more info on Ideal Software’s Inventory Control system visit Ideal-Stock-Control