Top 10 Tips for Cutting Costs in Your Foodservice Operation

With the economy affecting all of us, ongoingoverproduction. What to do with leftovers? How
cost control through careful spending is becomingcan they be recycled or recondition? Leftover
priority #1. According to Jeff Breeden ofturkey becomes turkey chili. Left over baked fish
Cook’s Direct, “Many of the restaurantcan be turned into delicious fish cakes served with
owners and foodservice managers that we talkremoulade sauce. It should also be the policy that
to everyday are telling us how the numbernothing is thrown out without the manager or
crunching in the kitchen is now critical to controllingchef’s approval. Leftover rice can become
costs and staying afloat during these roughtomato rice soup, or turn it into spectacular rice
times.” Here are ten easy tips to help you cutpudding. Leftover product would then be
costs in your kitchen.compared to the production sheet records so
Create a Sales Plan and Budgetthat adjustments may be made the next time
For every business goal, you should have a plan.that menu is served.”
To effectively manage kitchen costs, you need aAvoid Over-Staffing in Your Kitchen
good plan in place that balances sales projectionsJust like the seasonality of your business should
with expenses. Although going through thisbe reflected in your purchasing, make sure that
process is tedious, the outcome can save youyou’re staffing appropriately for busy times
hundreds, even thousands, of dollars. But to beas well as slower times of the day. Cross training
effective, you must measure actual costs andof employees can also lead to improved
revenues and compare these to your budget onproductivity in your kitchen by having one person
a monthly basis. For every area that is overhandle two roles during slower times.
budget, it’s time to dig into the account andTip #6: When customer traffic is down, use all
analyze why costs are too high. In some areas,available staff to prepare foods in advance. You
costs may be under budget. Understanding whycan have employees cook and freeze roasts, slice
costs are under budget is as important as diggingthem and prep for barbecue at a later date or
into those that are over budget.prepare and freeze batches of lasagna. All these
Good fiscal management is the key to anythings can be done well in advance so that you
successful business. A good business planoptimize labor.
evaluates your expenses, sets a budget, andReduce Energy Consumption and Start Saving
helps you to trim costs where necessary andMoney
most appropriate. It will also help you understandRestaurants and other foodservice operations are
the mechanics of your business. Being in tune withone of the highest energy consumers, using
each area of your operation will lead to greatroughly 2 ½ times more energy per square
profitability.foot than used in other commercial buildings.
Tip #1: Prepare a business plan with forecast andEnergy dollars are often wasted in the form of
budget for food purchases, restaurant equipmentexcess heat and noise generated by inefficient
and supplies, and repairs or services. Compareappliances, heating ventilation and air conditioning
your actual expenses against your budget forsystems, lighting and refrigeration. Investments in
each area on a monthly basis to identifyENERGY STAR equipment can help restaurant
overspending in any specific area before itowners and foodservice managers improve the
becomes a serious problem.performance of their operation while reducing
Review Your Ingredientsenergy costs. Restaurants that invest strategically
When kitchen costs start to soar, it’s time tocan cut utility costs 10 to 30 percent without
check out the ingredients being ordered by thesacrificing service, quality, style or comfort while
chef. Trying to offer too many kinds of foods onmaking significant contributions to a cleaner
a menu unnecessarily increases your food costs.environment. ENERGY STAR has a variety of
You’ll find that keeping the ingredients oncertified equipment that saves utility dollars. Some
hand for a larger than necessary menu isof the equipment certified by ENERGY STAR
expensive. It also makes it more difficult to useincludes fryers, hot food holding cabinets,
up certain food ingredients while they are stillcommercial solid door refrigerators and freezers,
fresh, potentially causing an increase in foodand commercial steam cookers, commercial
waste.dishwashers, and commercial ice makers.
Tip #2: From Bob Agrast of Menorah Park CenterTip #7: If you can’t replace your equipment
for Senior Living in Beechwood, OH: “Tracktoday, you can still reduce your utility expenses
your food purchases by components. Youby regularly cleaning and maintaining your existing
purchase multiple categories of products fromequipment. Make it a habit to clean the coils on
companies such as Sysco. If you track youryour refrigerator monthly or de-lime your
purchases as we do, it is easy to dissect yoursteamer periodically. To learn more tips, take a
spending and find cost trends. We track bylook at Ten Tips to Save Money and Energy in
splitting out the following minimum categories:Your Commercial Kitchen from Cook’s Direct.
Meat, poultry, seafood, produce, milk, pop,Minimize Waste by Ensuring Food Stays at Proper
bakery, wine. Groceries are subdivided further toTemperature
track nutritionals and thickened juices etc. You canMaintaining your walk-ins and any warming and
track as many as you are able to do. Onceholding equipment ensures you aren’t wasting
separated it is easy to watch your purchasesmoney on spoiled food. A good way to watch for
monthly to see if you are spending more in anyinventory spoilage is to check food temperatures
particular category. If you are, you are then ableat least every two hours to make sure it never
to delve in to finding what may have caused theenters the food Danger Zone. For prepared
spike in purchases in the category. It may befoods, like soups and buffet items, check the
justified, maybe not, but you at least knowinternal temperate frequently to ensure it
where to begin searching for food cost problems.maintains a minimum of 140o Fahrenheit.
The same technique can be performed withTip #8: Have your equipment serviced regularly to
repairs and non-food expenses.”make sure it’s calibrated and running at peak
Make Portion Control Your Priorityefficiency.
Small changes in portion size can create bigSave on Utility Bills through Reduced Water Usage
payoffs or negative results to your bottom line. IfReducing your water usage doesn’t just save
your portions are too large, or even just moreyou money in the water bill. It saves you money
than your customers expect, you’re throwingin your electric, gas, and sewer bills as well. Utility
money away.companies read your water meter to calculate
To better understand the impact, consider thisyour monthly sewer bill. They estimate that most
example. Your operation serves sandwiches withof your water goes down the drain, so reducing
¼ lb of deli meat and you serve 50 of thesewater usage also saves on sewer costs.
each day. Few people can tell the differenceRegardless if your water heater runs on gas or
between 4 oz. (¼ lb) or 4-½ oz, so let’selectric, reducing the water usage will reduce the
imagine that your servers are measuring theamount of money needed to keep that water
meat, but aren’t focused on accuracy andheated. Using energy efficient products like a
tend to go heavy rather than light. If there’ssteamer or dishwasher will increase the savings
an extra ½ oz. of meat on a sandwich, theyeven further. They use less of both water and
probably can’t tell, but that ½ oz at 50electricity than their standard counterparts, so
sandwiches a day ends up being almost 11 lbs ofwhen you buy an ENERGY STAR qualifying
deli meat at the end of one week. That’sdishwasher, you are reducing your water and
568-¾ lbs by the end of the year. If you’reelectricity bills.
paying only $5 per pound for that meat,Tip #9: Replace older faucets with newly
you’ve just given away $2,843.75, onedeveloped models that conserve water without
sandwich at a time. Now think of that with morecompromising performance. You can find a list of
expensive ingredients or in bigger quantities! Youendorsed products on the official Green
get the idea.Restaurant Association web site.
Tip #3: The right portion control utensils can bringWork with your Suppliers
consistency to your kitchen and ensure thatWhether it is seasonal produce from local growers
portion sizes are perfect. Proper portion controlor clearance products from your equipment and
serving utensils and portion control scales canrestaurant supply vendor, let your suppliers work
ensure consistent portions every time, even withfor you. By developing relationships with your
a change in staff.suppliers, you can often have them do the leg
Review your Extras to See Where you Can Savework for you to get what you need at the best
Atmosphere and extras are a great way tovalue. As you develop a relationship, a good
impress customers, but when money is tightsupplier will get to know your business and your
it’s timeto cut back. Review the extras withneeds. They can advise you on upcoming
staff that aren’t needed and that aren’topportunities for you to save money through
a part of your customer service. If it isn’tsmart planning and buying.
adding any customer value, then reducing usageTip #10: Use the internet to do some quick and
or cutting it altogether can improve costs.easy price research to ensure you’re
Tip #4: Document everything that is consideredsuppliers are working for you. Websites like or can
an extra from the garnish on the salad plates tohelp you compare market prices so you feel
the replacement kitchen supplies like covers onconfident when negotiating with your suppliers.
the trays during the holidays. Put a dollar figure onAbout Jeff Breeden and Cook’s Direct:
each extra and consider which options will createJeff Breeden is active in the Foodservice Industry
the biggest impact. Finally, call a meeting with staffthrough his work at Cook’s and as a member
members, especially those who interact withof NAFED (National Association of Food Equipment
customers, and brainstorm for ideas to lessenDealers). During the past 12 years, he has held a
costs but still maintain customer satisfaction.variety of roles including new product
Take a Look at Your Garbagedevelopment, national account sales, and brand
How much of your inventory is going to waste?development. In his current responsibility as Chief
Inventory orders should coincide with the seasonalMerchant, he utilizes his experience and expertise
traffic of your restaurant or operation. Make sureto find innovative equipment and supply solutions
inventory is ordered with the least amount ofto meet the evolving needs of restaurant and
overstock waste.institutional foodservice operations. Cook’s
Tip #5: From Bob Agrast of Menorah Park CenterDirect provides a full range of commercial kitchen
for Senior Living in Beechwood, OH: “Worksolutions including all types of kitchen supplies and
your boxes at least two times a day. Your boxesheavy duty restaurant equipment to correctional
(walk ins) are the greatest collector of wastefacilities, institutions and other large foodservice
because unlike the storeroom, the items in youroperations across North America. The company
coolers have a short shelf life and the clock iswas founded over 10 years ago and is known for
ticking. It is not just about proper sanitation whenits innovative products, strong customer service
you check your walk ins and other coolers. Checkand expert knowledge of institutional kitchen
for overproduction. Decide how to reduceoperations.