Category: Back of House Cloud Dine Systems Company News Front of House Restaurant

The Trifecta of Restaurant Profitability

20 dollar money
During a recent discussion with a restaurant franchisee, the issue of profitability came up. As he put it, the restaurant business has three basic levers that the owner/management can control: food sales, food costs, and labor costs. I call these the trifecta of restaurant profitability since you simultaneously need to get all three correct. (Ok, food and labor costs are prime costs, so technically it should be called exacta or perfecta of restaurant profitability. I wouldn’t describe most restaurants as exact or perfect. So I went with trifecta.)
These are so important, but when was the last time you looked at them in your restaurant?
Here’s a simple suggestion for each to get you started.

Food Costs

Create a simple sheet that tracks throwaways daily. The restaurant franchisee found $75 a day in savings here.

Labor Costs

Pick a day of the week and look at the staffing verses the sales. Is there an extra hand here?

Food Sales

Pick the five most popular items on your menu. Does your wait staff consistency upsell add-ons for these entrees (assuming it makes sense)?
P.S. We are working on a product to make the management of the trifecta much easier. More on that in 2013.
Photo credits: (Money Shots Ver4 by Creative Commons Attribution 2.0 Generic License
Tag: food costs inventory labor costs profitability revenue sales scheduling trifecta
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