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

March 27, 2013


In This Issue:

Tips and Things - What is Food Cost?

Leadership - The Job of a Leader

 Restaurant Start Up - The Grand Opening


 Tips and Things

What is Food Cost?

Food cost reflects only food that was consumed. If purchased food is still in inventory, it is not an expense, but an asset. Consequently, if you are using purchases as a figure for your food cost on your income statement, you are probably overstating your food cost. If you are using "average inventory" to calculate food cost consumed, your actual food cost can be more or less that what it is showing, depending on which day of the week the month ends.

Therefore, your choices are: Take inventory regularly and know the true cost of food consumed each month, or take it once a year and operate in the dark for 11 months. You cannot afford to wait 11 months to discover that you have a food cost problem..

Thought For The Day

"Management's job is to see the company not as it is, but as it can become."

~ John W. Teets


 The job of the leader is to determine in what direction the company should be moving, communicate that direction to the staff and then help the herd to move in that way. It is not to enforce a set of rules merely to preserve the illusion of control.

Every once in a while you will have someone wandering off to the north. North is a good direction. There is nothing wrong with north; its just not the direction you want the heard moving. (There is a time for everyone to head off in their own direction. Your job as an effective leader is not to fight that urge, merely to channel it in an appropriate manner).

Restaurant Start Up - The Grand Opening 

  No matter how great your marketing plan is, even if it brings in hundreds of new guests each week, if you have a bad product (e.g., inconsistency) all you will have accomplished is to more quickly let people know about it. So, before you schedule a grand opening, drop big bucks on advertising, or spend a fortune on any other type of advertising, make sure you are ready to serve your new guests in a manner that will make them repeat customers and who will spread positive word-of-mouth endorsements.  



You can now read todays Restaurant Business News on our website .  


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



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

Be sure to take advantage of our "Ask The Experts" page. This is your chance to ask any questions you have regarding restaurant operations, culinary, marketing and start up issues.



Visit our web site RestaurantExperts.  You can view additional tips and techniques in addition to restaurant industry news that is regularly posted on our Profit Line Facebook page.


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

"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.

Contact us at RonSantibanez@gmail.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 RonSantibanez@gmail.com



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