Will grocery prices hike impact restaurant business in 2017

Will grocery prices hike impact restaurant business in 2017

During these times of increasing grocery prices, it is very essential for a restaurant business to strike a balance between food costs, pricing each dish and primarily customer satisfaction. So here are some tips to in order to strike that balance for the year 2017:

1.       Track Raw Materials Costs at a Recipe Level

A computerized tracking system should be there to check the dish cost at the recipe level. Whenever you add a recipe in the system, it should give its current cost based on the current raw materials pricing.

This will help you track your usage and stock availability based on orders. Once a process is set, following it becomes easier. Many a times you hear people say,“ Have you tried so and so dish of this restaurant !?”. That dish is often the first thing coming to anyone’s mind hearing the restaurant name. Narrow down the list of such 10 items on your menu and track the raw material costs for them, if not for entire menu.

Track Raw Material Costs at recipe level

2.       Reduce Waste

Wastage can be reduced at multiple points:

·         Wastage of Raw Materials

Suppose weekly need of Paneer is on an average 7 kgs and every week you buy 10 kgs, 3 kgs paneer gets wasted each week. Tracking raw material stocks can reduce such wastage.

·         Wastage of cooked dish

While preparing a dish on the menu for which order is received, utmost care should be given to the proportions of each ingredient as per the recipe, so that when the dish is cooked it is exactly 1 portion and no extra wastage is made.

·         Wasted as leftover

Many a times, a new customer may not be well aware of the portions served in each dish. It is a good practice to suggest him with the proportion of dishes in order that there is minimal leftover food by the customers.

·         Follow the lean method to reduce wastage

Remember to order in smaller quantities (based on average consumption) to avoid wastage and check pilferage. This not only helps you save on your expenditure but also gives you a better picture of grocery consumption usage pattern.

3.       Menu Engineering

Menu Engineering is a very important aspect of managing food costs. A menu is not just a piece of paper with a list of food items with their respective prices but the first step to sell your produce. Menu Engineering will actually bring down the menu items to the dishes which are profitable and the ones not profitable.

With an increase in prices of raw materials, it is very essential to consistently evaluation your menu and you are pricing food items as per the season as well as more focus can be given to your more profitable food items. Seasonal dishes can be marketed and promoted for increased sales hence increasing profit margins.

highlight seasonal dishes

Trilyo is a smart restaurant assistant or app that collects all your restaurants’ information from sales, promos, social media, payments, feedback across all channels to help you investigate customer better. We believe when you have deep insight about your guests, you can sell better.

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