Simple Ways to Work Smarter
In order to achieve higher revenues and lower expenses in the professional kitchen, it’s imperative to embrace new ideas that are
practical and cost-effective. Working efficiently can make your
operation more successful by maximizing time, resources and materials.
An organized kitchen can increase productivity, resulting in greater
profits.
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| You take dollars to the bank, not percentages |
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Which of your menu items deserves the most prominent places on your menu? How can you maximize your menu profitability? Calculation of the gross profit contribution of your items can lead to higher profits.
 Gross profit contribution calculation helps you optimize your menu Not necessarily. My philosophy is this... You take dollars to the bank, not percentages. Your food cost percentage isn't necessarily an accurate picture of how profitable your menu is. The gross profit contribution of an item tells the real story. Look at the chart below:
 Gross profit contribution of menu items Based on this information, students of the old school would encourage sales of the Tuna Sandwich over the Turkey Club. But look at the gross profit. Despite it's higher cost of sales, the Turkey Club offers an extra dollar in flow through profit. Although the retail price of the Turkey Club is higher, we will assume for comparison purposes that each sandwich is fairly priced. The point is to avoid making decisions based on food cost percentage. The first step is to accurately determine the cost each of your menu items. If you need help, download our Menu Item Costing Worksheet and protocols. It must become your mission to utilize all your skills to focus on the menu items that have the most dollar profit, not the lowest percentage cost.
See also:
Bill Main is a nationally-recognized author, consultant and speaker. His company, Bill Main & Associates, specializes in strategic growth plans for foodservice entrepreneurs. For information on how you can grow your top line revenues through innovative marketing, menu, leadership and training systems, visit www.billmain.com. |
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