How can you experiment with food cost control?

1 Calculate your food cost percentage

The first step to experiment with food cost control is to know your current food cost percentage, which is the ratio of your food expenses to your food sales. This will help you set a realistic and achievable goal for reducing your food costs and improving your profit margin. You can calculate your food cost percentage by dividing your total food cost (including purchases, inventory, and labor) by your total food sales for a given period. For example, if your food cost is $10,000 and your food sales are $25,000 in a month, your food cost percentage is 40%. Ideally, you want to keep your food cost percentage below 30%, depending on your type of cuisine and service.

2 Analyze your menu items

Once you have your food cost percentage, you can analyze your menu items to see which ones are contributing the most or the least to your food cost. You can use a menu engineering matrix to categorize your menu items based on their popularity and profitability. The matrix divides your menu into four quadrants: stars, plowhorses, puzzles, and dogs. Stars are high-profit and high-popularity items that you want to promote and highlight. Plowhorses are low-profit and high-popularity items that you want to optimize and increase their profitability. Puzzles are high-profit and low-popularity items that you want to test and improve their appeal. Dogs are low-profit and low-popularity items that you want to eliminate or replace with better options.

3 Experiment with portion control

One of the easiest and most effective ways to experiment with food cost control is to adjust your portion sizes according to your customers' preferences and expectations. Portion control can help you reduce waste, improve consistency, and increase customer satisfaction. You can use tools such as scales, measuring cups, spoons, scoops, and templates to ensure that each dish has the same amount and quality of ingredients. You can also use techniques such as pre-portioning, plating, and garnishing to enhance the presentation and perception of your dishes. You can also survey your customers and staff to get feedback on your portion sizes and make adjustments accordingly.

4 Experiment with recipe modification

Another way to experiment with food cost control is to modify your recipes to use cheaper or more available ingredients without compromising the taste and quality of your dishes. Recipe modification can help you save money, reduce inventory, and diversify your menu. You can use substitutions, such as using seasonal or local produce, using cheaper cuts of meat, or using dried herbs instead of fresh ones. You can also use extensions, such as adding fillers, binders, or sauces to stretch your ingredients. You can also use reductions, such as using less oil, butter, cheese, or cream to lower your calories and fat content. You can also use variations, such as adding different spices, flavors, or toppings to create new dishes.

5 Experiment with inventory management

A third way to experiment with food cost control is to manage your inventory more efficiently and effectively. Inventory management can help you avoid overstocking, understocking, spoilage, theft, and waste. You can use tools such as inventory software, spreadsheets, or checklists to track and monitor your inventory levels, usage, and turnover. You can also use techniques such as FIFO (first in, first out), par levels, and reorder points to ensure that you have enough inventory to meet your demand, but not too much that it expires or gets damaged. You can also use strategies such as cross-utilization, batch cooking, and preservation to maximize the use of your inventory and minimize the waste.

6 Experiment with pricing strategies

The final way to experiment with food cost control is to price your menu items strategically and competitively. Pricing strategies can help you increase your revenue, attract and retain customers, and create a perceived value for your dishes. You can use methods such as cost-plus pricing, value-based pricing, or competition-based pricing to determine the optimal price for your menu items based on your food cost, target profit, customer demand, and market conditions. You can also use tactics such as psychological pricing, bundle pricing, or differential pricing to influence your customers' buying behavior and perception of your menu items.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?