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Five Proven Practices to Combat the Rising Cost of Food Products

The cost of meat, seafood, produce, eggs, and a host of other food products has gone up considerably over the past year. In addition, some industry professionals are predicting another 8%-10% overall bump in restaurant supplies in 2022.

While raising menu prices is one way to offset the increasing cost of doing business, it’s not the only way to maintain profit margins.

First, be sure you’re being smart in how you’re purchasing products as well as your processes and practices for handling food products once they come in your back door.

Here’s a shortlist of practices followed by many of the most successful and profitable members on RestaurantOwner.com. If they’re not part of your standard operating procedures, now may be the perfect time to consider implementing some changes in the way you purchase and control your food products

1. Don’t over-purchase. Buy just what you think you’ll actually use. This will reduce waste, spoilage and improve portioning, as employees won’t think they have an endless supply of products on the shelf.

2. Check your product specs. Are you using the most appropriate grade or quality of product for the task? If 99% of your customers won’t notice the difference, maybe it’s time to change the specs on some products.

3. Check your portion sizes. This can be tricky because you don’t want to lower customers’ perception of value. But when faced with price increases or tweaking portion sizes, take your pick.

4. Consolidate purchases. Could you get lower overall prices by buying more products from one supplier? Some restaurants have lowered their food costs by 4% to 5% and even more by doing this.

5. Calculate your food cost every week, not just once a month. Weekly food costing will make your kitchen staff more aware and accountable for food cost fluctuations. You’ll be able to respond to problems quickly and it will change the culture in your kitchen when your KM or chef knows that food cost is calculated every week, not just once a month.

When food and other costs go up, you’ve got three options to maintain your margins. 1) Work smarter to control your costs, 2) raise prices or 3) a combination of both. Make sure you’re doing all you can to make the most of the food you do get at the best prices possible.

Source: RestaurantOwner.com