food cost
Hospitality Financial Leadership: Food Cost Net Weight
David Lund | March 30, 2020
By David Lund With Guest Author Patrick McClary When people hear the term food cost, they generally think of the simple calculation of cost / selling price = food cost %. This calculation does little more than give you a percentage. Understanding and controlling food cost is much more complex. In operations that have proper controls and processes in place a spike in food cost can be traced back to one event. Operations that do not have a strong foundation of food cost usually react with bizarre behavior such as stepping up their garbage cans thinking that the costs increases are because of people throwing out food. That may be the case,...
Hospitality Financial Leadership: Controlling Food Cost – Top 10 List
David Lund | November 11, 2019
By David Lund Food cost is a never-ending battle in a war that does not end. You can never take your foot off the gas, if you do you will slow down. When you slow down in the food cost world it is costly. Back in the day I cut my teeth as a receiver, F&B cost control clerk and ultimately an F&B cost controller. Here is my top 10 list of food cost control strategies you can either put in place, re-commit to doing, or ask yourself why it is not already being done.😊 Shop Around Check Your Receiving Lock it Up Menu Costings Embrace Contribution Margin Separation of Duties After Hours Invoice Approval ...
Hospitality Financial Leadership: Global Food Cost vs Tracking Individual Outlet – Pros and Cons
David Lund | October 1, 2019
What is really important to realize is the food cost calculation in your hotel will always come back to the cost of goods formula. Any attempt to track and individualize the outlet food cost that I have ever seen is a big waste of time. It is a waste of time because it always comes back to the fact that the food cost is calculated by adding the opening inventory to the purchases and then subtracting the closing inventory – as well as any legitimate credits at month end – to calculate the food cost. This is never done in hotels by outlet simply because it is completely inefficient to do so. What I see time and time again is people tryin...
