High Food Costs

Be aware that your menu's design might be contributing to your cost control problems.

Your high food costs might be inherent in your menu and not have anything to do with what is not being done in the kitchen or dining room. For example, the menu might contain too many items, which can lead to excessive inventories and waste from items that aren't selling. Poor forecasting might be resulting in over preparation and unsold leftovers, or the sale of high food cost items might be overshadowing the sales mix of low food cost items.

Menu items might be improperly priced. Pricing them too high might discourage selection by customers, while pricing too low can sacrifice additional revenue that would lower your food costs. Sometimes the cost of ingredients increases, and there is no way to increase price in the short run. As a result, food costs will be higher until prices are raised or costs return to normal.

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