As a restaurant owner, dealing with high food costs may be one of the most significant issues that you encounter. Many different situations trigger food prices to rise. Some, such as the seasonal increase in ingredients prices, are external.
Others may be internal factors such as waste in the kitchen or staff theft. Regardless, if your profits are shrinking, it may be a signal that your food cost is out of line. Before slipping into the red any further, here is a quick refresher course regarding food cost control methods you can apply now for immediate results.
What Causes High Food Cost?
After talking to a wide range of restaurant owners and operation managers across the island, we've nailed down 3 potential causes that might be responsible for hiking up costs.
Not tracking raw ingredients prices regularly
Not maintaining proper relationships with suppliers
Not keeping & tracking daily / weekly records of your costs
#1 Not tracking raw ingredients' price regularly
Having been in the foodservice industry for a long time, you know how difficult it is to keep up with price fluctuations— especially with fresh produce and vegetables; since we import almost everything, prices can get quite volatile.
Using FoodRazor, you can track all the variances through daily email notifications, which removes the stress of having to check market prices manually.
We notify you daily regarding any price changes in your ingredients so you can immediately contact your supplier and negotiate for a better price. Those few cents saved can amount to tens of thousands of dollars when you account for the amount you ordered in the long run!