Managing Rising Food Costs
By: Gordon Food Service
Corn and soybean prices are at a seven-year high. This means it costs more to feed herds, and those costs are passed along through higher prices for food and supplies. There’s also high demand for exported commodities, which challenges our supply of raw products. Here are some things to consider for operational efficiency:
Look at your data
Understanding your financial details is key to uncovering opportunities. Food costs and menu pricing are good places to start.
Plate costs:
Menu analysis:
Look at your data
Understanding your financial details is key to uncovering opportunities. Food costs and menu pricing are good places to start.
Plate costs:
- Do you know the cost of each dish on your menu?
- Are you accounting for additional costs for takeout (i.e., packaging)?
- Are you looking at food pricing trends when planning for your next order?
Menu analysis:
- Is your menu flexible, so you can move items on and off as prices change?
- Do you know what items are most profitable?
- Is your pricing accurate for your costs and similar to your competitors?
- Can you adjust menu prices by a small amount (even if it’s only a few cents)?
- Pay attention to your bussing— are there foods that go uneaten or products that are unused?
- Can you revisit portion sizing?
Products:
Here are ways to add-on sales to offset thinner margins:
Additional insights:
How to calculate food cost for your restaurant
How to do restaurant food inventory management right
Using your data to drive menu changes
- Have you done a side-by-side comparison of using value-added products vs. the waste and labor of processing yourself?
- Are you tracking inventory to make sure everything you purchase is used?
- Can you use items with more consistent pricing (potatoes, pasta, rice)?
- How else can you use a higher- margin item in a new way? Promote as an LTO or special.
Here are ways to add-on sales to offset thinner margins:
- Use a rewards program to generate repeat customers.
- Set up a limited-time ghost kitchen. Build a separate concept using your kitchen and staff focusing on a daypart that is not part of your normal business.
- Train your staff to suggest add-on items like appetizers, beverages and desserts.
- Focus on the experience. Customers often overlook price changes when there’s a high-value experience.
- Offer merchandise and gift programs such as clothing, gift boxes and proprietary sauces.
Additional insights:
How to calculate food cost for your restaurant
How to do restaurant food inventory management right
Using your data to drive menu changes
Utilize programs and product solutions
Gordon Food Service® offers many solutions aimed at helping you control costs. They provide product data to help you build a plan.
Market Updates
Organized by product group and based on what is happening in the market. You can subscribe to updates.
Recipe Manager™
Recipe Manager will help you compare food costs to menu prices so you can make strategic decisions that boost your profitability.
Inventory Manager™
Waste, spoilage, theft and overstocking are all “hidden” food costs that can seriously impede cash flow. Uncover inventory problems with Inventory Manager.
Markon Ready-Set-Serve® Produce
Guaranteed quality, dependable yields, safety assurance, and fast, easy preparation are the hallmarks of the Ready-Set-Serve brand. All products are prepared and packaged for foodservice operators’ specific needs and are 100 percent usable.
Gordon Signature® Simpli-Fry Oil
A high-performance oil may cost more but will last twice as long, actually making your costs less per day than with a commodity oil. Plus, you save labor costs with reduced fryer cleanouts.
For more ways to combat rising food costs contact your Sales Representative.
Gordon Food Service® offers many solutions aimed at helping you control costs. They provide product data to help you build a plan.
Market Updates
Organized by product group and based on what is happening in the market. You can subscribe to updates.
Recipe Manager™
Recipe Manager will help you compare food costs to menu prices so you can make strategic decisions that boost your profitability.
Inventory Manager™
Waste, spoilage, theft and overstocking are all “hidden” food costs that can seriously impede cash flow. Uncover inventory problems with Inventory Manager.
Markon Ready-Set-Serve® Produce
Guaranteed quality, dependable yields, safety assurance, and fast, easy preparation are the hallmarks of the Ready-Set-Serve brand. All products are prepared and packaged for foodservice operators’ specific needs and are 100 percent usable.
Gordon Signature® Simpli-Fry Oil
A high-performance oil may cost more but will last twice as long, actually making your costs less per day than with a commodity oil. Plus, you save labor costs with reduced fryer cleanouts.
For more ways to combat rising food costs contact your Sales Representative.
