How do you factor in waste and theft in your food cost reports?

1 Track your inventory

The first step to factor in waste and theft in your food cost reports is to track your inventory accurately and regularly. You need to know how much food you have on hand, how much you order, how much you use, and how much you discard or lose. You can use a simple spreadsheet, a software program, or a mobile app to record your inventory data. By tracking your inventory, you can calculate your actual food cost, which is the difference between your opening and closing inventory, plus your purchases, minus any transfers or credits.

2 Conduct waste audits

The second step to factor in waste and theft in your food cost reports is to conduct waste audits periodically. A waste audit is a process of measuring and analyzing the amount and type of food that is thrown away or spoiled in your kitchen. You can use a scale, a bin, and a log sheet to collect and record your waste data. By conducting waste audits, you can identify the sources and causes of waste, such as overproduction, poor storage, incorrect portioning, or low quality.

3 Implement waste reduction strategies

The third step to factor in waste and theft in your food cost reports is to implement waste reduction strategies based on your waste audit results. You can use various techniques to minimize waste, such as menu planning, inventory management, portion control, staff training, or composting. By implementing waste reduction strategies, you can lower your food cost, improve your efficiency, and reduce your environmental impact.

4 Monitor your staff behavior

The fourth step to factor in waste and theft in your food cost reports is to monitor your staff behavior and performance. You need to be aware of any signs or patterns of theft, such as missing inventory, unexplained sales discrepancies, or suspicious transactions. You can use cameras, security systems, or audits to deter and detect theft. By monitoring your staff behavior, you can prevent or address any dishonest or unethical actions that can affect your food cost and reputation.

5 Create a positive culture

The fifth step to factor in waste and theft in your food cost reports is to create a positive culture and environment in your kitchen. You need to foster a sense of teamwork, accountability, and ownership among your staff. You can use incentives, recognition, or feedback to motivate and reward your staff for their performance and behavior. By creating a positive culture, you can increase your staff loyalty, engagement, and productivity.

6 Review and adjust your reports

The sixth step to factor in waste and theft in your food cost reports is to review and adjust your reports regularly. You need to compare your actual food cost with your ideal food cost, which is the theoretical cost of the food you use based on your recipes and portions. You also need to compare your food cost percentage with your target or industry standard, which is the ratio of your food cost to your sales. By reviewing and adjusting your reports, you can identify and correct any errors, variances, or opportunities for improvement.

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?