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      Ron's Tip Jar - Published by Ron Santibanez   

July 10, 2012

 


In This Issue:

Tips and Things - A Cost Control Program Must Be Part Of Your Business Culture

A Bit of Wisdom - Purchasing Tip

 


 Tips and Things

A Cost Control Program Must Be Part Of Your Business Culture

 

THE PREVENTION AND DETECTION of fraud and theft are just ancillary benefits of a cost-control program, a premise that is not always clear to independent operators. Over the years I have implemented cost controls at several independent restaurants. Once completed, they would tell me that they now understood the true purpose and value of cost controls. A few independent owners felt that their physical presence and the hiring of family members eliminated the need for cost controls. Once they progressed beyond the singular idea that cost controls are to keep people from stealing and understood that the primary purpose was to provide feedback on day-to-day operations and decisions, they appreciated the real purpose and value.

Why donít all restaurant operators have cost-control programs? The answer is that they are not aware of the waste that is taking place around them. It is not very complicated, as it is all basic management. You have to be able to identify value, and you have to know your costs and detect where they are excessive. Cost control encompasses all areas from the back door to the front door; from purchasing to paying your bills; from recording each transaction to depositing the sales receipts in the bank. Cost control is also more than just computing percentages and ratios; it involves making decisions after the information has been compiled and interpreted.

Cost control is used to monitor the efficiency of individuals and departments; to inform management of what expenses are being incurred and what incomes are being received; and whether they are within standards or budgets. In essence, cost controls are for knowing where the business is headed, not for discovering where it has been. That enforces the preventative and proactive purposes of cost controls.


 

Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great.

 MARK TWAIN (1835Ė1910)

Humorist and writer

 


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 

 Purchasing Tip

Your purchasing strategy is an integral component of the overall business plan because it directly impacts profit margins, cash management, asset turnover, and return on investment. Efficient purchasing permits costs to be lowered without corresponding decrease in quality or portion sizes. Cost stability means menu prices remain stable and more competitive than those of operators who "ride the market" weekly.  

 


 

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

You may access the Blog directly or you can access it from our web site. www.RestaurantExperts.com

 


   

Follow me on Twitter @ronsantibanez. I post frequent tips and suggestions to Improve Your Profitability.


 

We are now featuring recipes from Chef Bob's Recipe File. We will be posting new recipes each week. Check back often to receive some of Chef Bob's favorite recipes.

You can also view our past newsletters on the site as well. 


  

Please visit our web site http://www.RestaurantExperts.com  You can view additional tips and techniques that are regularly posted on our Profit Line Facebook page.


Click here to view our feature page on Salad Republic 

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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


For information regarding our start-up and profit improvement services, call us at 866-903-5875. You may also reach me by email at ron@RestaurantExperts.com


 

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