Specializing in Restaurant Start Ups, Restaurant Turnaround, and Profit Improvement




     Ron's Tip Jar/Insights - Published by Ron Santibanez   

August 5, 2013


In This Issue:

Effective Cost Control Systems

Restaurant Start Up - Breakage and Loss

Quick Tip

Effective Cost Control Systems

Effective cost control systems must start at the top of your organization. No control program can function well unless ownership and management are committed to enforcing the standards and procedures. Central to every restaurant operation are the 12 primary functions.

The 12 functions are purchasing, receiving, storage, issuing, pre-preparation (rough prep), preparation (for service), portioning, transfer of food from kitchen to dining room, order taking/guest check, cash receipts, bank deposits, and accounts payable.

Many of the functions overlap and are simultaneously performed. All are interrelated and must be monitored, or you will never uncover the real cause of any variance between actual and standard costs. Controls for each function must must be operative as soon as the personnel are assigned or have access to the function area. Another way to look at the 12 function areas is to imagine each function as one link in a chain. The chain will only be as strong as the weakest link.


Thought For The Day

"It sounds extraordinary, but it's a fact that balance sheets can make fascinating reading"

~ Mary Archer

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Restaurant Start Up - Breakage and Loss

New restaurants tend to have higher than normal incidents of breakage and loss when it comes to supplies such as plate and glassware, silverware and linens. This is due to carelessness and the failure of management to have systems in place to control loss.

Quick Tip 

Don't delegate to people who don't want the responsibility. Not everyone wants to advance and it's futile to force activity on someone who does not want it.


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"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 "Ron's Tip Jar/Insights" by clicking here.

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