Insights - Published by Ron Santibanez   

August 1, 2012


In This Issue:

Tips and Things - You Must Forecast Accurately How Much You Are Going To Sell

A Bit of Wisdom - Restaurant Myth


 Tips and Things


Advanced planning is an important step in any business strategy. Being able to predict within 5 percent of what you are going to sell can improve the quality of your decisions significantly. When it comes to food-cost control, itís necessary to estimate what and how much you are going to sell of each item listed on your menu. You donít want to run out of something, and you donít want to be left with excessive leftovers and waste.

Knowing what you are going to sell enables you to be better prepared. Armed with an estimate of the number of covers to be served, your sales-mix sales history is used to forecast how many of each menu item is likely to be sold. You then base the purchases and preparation forecast on those numbers so that you do not run out of an item in the middle of a meal period. At the same time the process will keep you from preparing too much and finishing the day with too many leftovers that cannot be sold a second day.

Remember: Being forced to work with leftovers will result in higher food costs and impose restrictions on your menu offerings. Early run-outs not only disappoint customers but can also disrupt the smooth production on the cooking line because demand may switch to a station that is not prepared for the additional volume.

Your chef or kitchen manager will determine the amount of food to prepare based on the projected number of customers that are expected at a particular time of day or day of the week. Employees must be scheduled according to the number of customers expected.

If your forecasts are off by more than 5 percent, note your actual sales and adjust upward or downward in the future. Managers and chefs come and go, so it is imperative that you keep good records of your sales history in order to forecast accurately.


 Be kind, for everyone you meet is fighting a hard battle.

PLATO (c. 427Ė347 B.C.)


For those of you who would like to grow your own herbs and vegetables for your restaurant but don't have the room, a new product is now available. It is called the Tower Garden. This would be a terrific addition to your patio dining area. It is a unique product, it is attractive, and it is sure to become a conversation piece. You can use it to grow a multitude of vegetables, flowers, fruits, and herbs. The cost is minimal, and it pays for itself in a matter of months.   

Click here for more information on this amazing product and to order. It's great for the home as well.

A Bit of Wisdom 

 Restaurant Myth.....


Costing out each item is very important, particularly to determine the gross profit contribution of each item. However, determining what the customers will pay is the most important consideration. While not an exact science, shopping the local competition plus an evaluation of your customersí income levels and spending habits, should provide valuable information to use as a framework for pricing decisions.



Additional "Tips" are now available on "Ron's Blog."



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We are now featuring recipes from Chef Bob's Recipe File. We will be posting new recipes each week.

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 We encourage you to contact us if there are specific subjects you would like to see addressed in "Insights" or "Ron's Tip Jar".

"Insights" is a newsletter discussing issues that affect your restaurants profitability delivered by Ron Santibanez. You may also view past issues of "Insights" and "Ron's Tip Jar" by clicking here.

Contact us at ron@RestaurantExperts.com

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