FOOD COST': A VERY COSTLY INGREDIENT IN THE CULINARY INDUSTRY

Food cost and beverage costs are never-ending battles in the kitchen and food & beverage department respectively. Taken together, food & beverage costs incur the highest expenditure and is one of the biggest challenges for the hospitality industry. 

Food cost remains one of the most key components of the kitchen and takes up a large chunk of the kitchen department's expenditure. How to balance the food cost with revenue is probably the biggest question for a professional chef to help run the business profitably. Thus, the best and most effective option for the executive chef is to properly train the kitchen staff in the most important tasks on how to streamline and reduce food costs. Food cost training is an absolute necessity for culinary staff, and even basic arithmetic is used in culinary accounting. In fact, every five percent cost you save is ten percent you earn. Communicating the daily and budgeted food costs along with any variances with the team is also important for the chef to educate them on the subject.       

Some of the major causes of high food costs have been identified as wastages and the misuse of food. Untrained employees will inevitably lack the necessary knowledge to use company resources economically. If you don’t train your employees properly, it will be a big risk for your organization.

The most likely outcomes of employees' poor motivation are its logical repercussions such as no opportunities for advancement in their hospitality career. Even the most hard-working employees leave their jobs because they lose their trust and confidence in the organization that they work in. The employees’ satisfaction should, therefore, be a top priority in any organization. That might also make customers suffer or have a bad experience. On the other hand, well-trained employees can transform their organization from an average establishment into a most-outstanding one. Such professional training will enable employees to use food cost technology applications to make service attitudes more tangible. My viewpoint is that these factors can also directly affect an organization’s reputation. Likewise, increasing the level of outstanding customer service will help meet the company's financial goals.

Thanks for taking the time to read my article. I appreciate your valuable feedback.

I respectfully invite every one of you to please watch my food cost presentation. Link here you will get the correct information.

https://www.youtube.com/watch?v=l-LHj_oymZM&t=25s