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Bo Bryant "The Restaurant Giant" - Food Cost for Beginners
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- เผยแพร่เมื่อ 17 ส.ค. 2024
- Restaurant Food Cost is a little more dynamic than you might think. Join me as we cover a simplified way to rationalize, track, manage and account for food cost and pick up some tips and tricks along that way, sure to help you drive down your cost of goods!
I really enjoy this subject. I had a lot of success in a restaurant that I managed I'm running the numbers on items to find out which one sold the best, and then finding ways to make them even more profitable one example was with steaks. The restaurant was buying prepackaged steaks that were very expensive. I was able to get a higher quality steak, cut it by hand, and save quite a few dollars per portion in comparison with the prepackaged ones. This had a huge impact on food cost and profitability. Another exampleof how I was able to make a dish more profitable was actually to increase the portion on our most popular item which was fish and chips. I actually increase the portion by 2 ounces, and was able to take the price from $15 up to $20. after I made the changes the dish continue to be the top seller the entire time I worked at the restaurant.
In the same respect, in regards to that same fish,we made sure that the fish was cut very consistently by only certain people to control the portions because there was a huge problem at the restaurant beforeI came there cutting pieces that were way too big and very inconsistent.
I love to cook but food cost control is a subject that I absolutely love. And I love to implement the systems that make controlling food cost easier
"We started to create a culture of excitement around doing it right." I'm not even finished with the video and had to pause it and give thanks. What a great exercise and tool for training! I've enjoyed this video tremendously. Thank you SO much! :)
Thank you for the feedback C Vaughan! I appreciate it. Let me know if you have any questions or other topics you'd like to see more about. Keep the culture going... "Doing it right" is the silver bullet secret to success!
As an individual that is gathering and assembling copious amounts of information for open a restaurant, I found this very informative and useful. Thank you for posting sir.
I'm glad it was helpful! Best of luck in your new restaurant.
@@RonaldBryantthank you so much, where is your email I want to sign in for getting this material
have no interest in restaurants... but this guy is so PROFESSIONAL i had to like & subscribe
You have a very large vocabulary that you apply in the appropriate context. Very articulate. I'm impressed.
This guy is a phenomenal speaker. very informative.
Thank you for the kind words Dave! Much appreciated.
excellent video. I've been in restaurants 20plus yrs. for past ten yrs had thoughts of opening a store. I've watched countless videos on these topics. your presentation was so spot on, I had to pull out pen and paper and take notes. thank you for concise and easily digestible information. you really cut through the bull. once again great presentation.
Thank you Scott! I apprecaite it!
Bo Byrant you should do courses online, people will def pay for them. I would.
Great video about food costs and the specifications of it.
Jacob Jung I agree
Great video!! Thank you!! Everything you mentioned is very useful. As a previous restaurant general manager and restaurants owner myself, I have to say that this video is so valuable for new restaurant owners or anyone in restaurant management. I learned a lot myself. Well done!
So clear and detailed info.. I have learn a lot with this videos.. Thank u sir.. For educating me..
I'm grateful for all this "course" I will struggle no more with costing thanks to you
Best of luck! ~ Bo
Great presentation and a real eye opener.
THX for doing the analytics and sharing with us! SSSOOOO INFORMATIVE!!!
I watched the first time his channel and I learn much more his really generous. thanks a lot ,
really love your videos.. Very straight forward. I am preparing myself to start my own small Jamaican restaurant and your videos have opened my eyes even more for me...Thank you
Thanks for the feedback Josette! Best of luck with your new venture!
Realistic and practical. Essential thinking for every new restauranteur.
Thanks Bo bryant
Very useful , i subscribed. In your great channel
Bader from Saudi Arabia 🇸🇦
The portion control exercise mentioned for the fries was also practiced in Taco Bell to measure meat filling scoops. I started my own business and have found these exercises very helpful to control portion sizes given to eat in customers when the food is given in a basket.
Thank you Bryan. I have 8 restaurants and this helped me a ton.
Trash Audit Idea is Amazing!
Nice! Let me know how it works for you.
Excellent video.
Thank you very much! ~ Bo
Working with you most have been extremely stressful! My boss has all the beer outside w no lock 😂 and we don’t give a shit no one takes anything he trust us so much that we don’t abuse that
Brilliant presentation Bo and really good tips for anyone to use.
You are very kind! Thank you for the feedback. ~ Bo
Very interesting and informative videos for those who is running their own business and they don't know how to control food cost... It's just a great video you put great efforts on this video. It's long video but very knowledgeable 👍🏻👍🏻👍🏻
So nice of you, thank you! ~ Bo
This is brillant, much needed and very informative...
This is brilliant, much needed information, thank you very much.
Thanks for the words of encouragement! Much appreciated.
Thank you so much for the feedback! Stay tuned, working on a new project as we speak.
This is amazing and i have a job interview tomorrow this thing gonna help me a lot. Thanks indeed ❤️
👏 👏 👏 excellent presentation
Thank you lots of great advice
You deserve more subs man, I know this is an old video but damn you put a lot of effort and I for into this video.
That's very kind my friend! I appreciate you and I am glad that the information was helpful. Best of luck in your endeavors. ~ Bo
Really well made video. Thank you
watched this as i folded laundry.. got me thinking about aspects i hadn't yet
Awesome video, thank you for sharing it.
I really enjoy your video. Thank you very much
Thank you Sabar! I appreciate the feedback. Best wishes!
Thank you and great video ! Looking forward for more of your amazing presentations !
You are incredibly kind. Thank you for the feedback! Working on a new project as we speak.
Great video...thank you
very nice video... thanks a lot for the guidance
Very informative video thank you are sharing.
Great info inside detail video
Great video Bo.
thank you for the great ways to control theft and waste
Good video, but the difference between chain and independent is food cost. Working for Sysco I learned that sales are generally marked up on an average of 15-30% for independent and sometimes negative for bigger clients. They are more important and if a sales person needs to hit their 15% average on their territory, they will charge the smaller accounts more to offset their bigger accounts not being there.
Sysco doesn't work on Mark-Up they work on Margin. Interesting little fact: 10% Mark Up on $100 is $10. 10% Margin on 100 is $11. Sysco is no dummy, that is for sure! That lesson notwithstanding, an independent street account is certainly subject to paying more than a chain restaurant and while some of that has to do with a sales persons discretion, there is also a lot more supply chain sophistication coming from the chains, simply meaning they know what behaviors a distributor is looking for and they offer those behaviors in exchange for better pricing, typically contracted. For example, they know that total number of drops per week and total number of cases per drop are the ultimate currency when it comes to leveraging distributor price. And they also sign contracts with distributors that contractually lock an agreed upon Margin or Mark-Up schedule so that a sales rep cannot just adjust pricing to help their commissions. Great feed back though, I really appreciate you taking the time to watch my video and leave a comment! Cheers, Bo
ROCK-N-ROLL Brother!!!
Brian you deserve to be followed man👍
Thank you, learned much from you Bo.
Glad to hear it! Thank you for the feedback! ~ Bo
All great tips. I have a question about preventing theft by locking the trash container -- *_does the manager have to then return to the container when the garbage is being picked up later on by the sanitation department?_* Or is there a "standard lock" that the sanitation department has keys to? (similar to luggage locks that airport security has keys to open). Just wondering. Thanks.
Thank you very much. I'm looking at the possibility of starting a small catering service for my area and you definitely added huge value to my approach; I thank you. Question : you mentioned a book. How would I download this. Thanks again
thank you for putting this online
Thanks for the feedback. If there are any topics you would more info on, let me know.
Very informative thank you so much
You are so welcome! Thanks for the feedback! ~ Bo
This is amazing!! I am learning so much!!
Thank you so much! I am happy to hear that. Keep it up!
Great video! Enjoyed hearing your insights.
Thank you Crude Cheata!
Thank you for the feedback! I appreciate it. Let me know if there are any future topics you would like to see.
have a good day to anybody who read this.
Thanks so much for this great presentation sir. Could you please explain me how can I get a copy of your presentation? Thanks and cheers
Thank you Ronald.
My pleasure Mimi! Thanks for watching!
Great content
Informative.
Thank you
Very good information , and thanks for posting it !!
What I would like to know is how do you come to the conclusion of how you are breaking this dollar down ??. Because you are approaching this as if there is a limit to how much you can charge, or what customers would be willing to pay ,, and that's not even mentioning the other factors that could influence that breakdown , such as the type of food , volume sold , price of rent , area , ,etc..
Great question @WISHBONEL7. I'll do a follow up video on this subject in more depth but in the meantime, there is a relative limit to how much you can charge. This is more of a menu engineering and psychology proposition based on how consumers perceive what is called "fair market value". While certainly there are items that are creative, new or so unique that the consumer doesn't have a way to rationalize its value and you can indeed capture better food costs and sell your products for a higher price. You are also correct about mitigating factors but the basis for this video is in the title. "...for Beginners". These rules should be applied as minimum value expectations for profitability. For example, if your rent as a percentage of sales is above 7% that illustrates that you have a sales (volume) issue and that will impact profitability vs. a food cost issue. You can run the best food cost in the world but if you cannot break the sales volume to get that number at or below 7% it doesn't matter. If on the other hand your rent is well below 7% of total sales you either have above avg. traffic (which is good) or your in a your in a less desirable real estate location. Getting a cheap location usually has a lot more to do with the real estate grading. A less visible, lower traffic area is going to require a higher spend (typically) in marketing cost to let people know you are there and what is saved in your rent percentage is typically offset by a higher spend in your marketing cost. As for as food, the deeper and more intricate you go with the food itself, adding more unique items and more labor by making something very creative may indeed drive down the cost of the product or allow you to charge more but you have to consider the combinative effect of food and labor as a whole (prime cost). At the end of the day, I am hopeful that you can crack this code and if/when you do I also encourage you to share because baseline and benchmark values I have shared I this video tend to be the predictable range and while there are exception to the rule, we don't see them as often as we would like. So if you find some, share them! Great question! Keep them coming.
Great video. I am a CPA and I am trying to determine the labor costs for a full service restaurant / bar like Applebees. Generally speaking it should run about 28%. However, how much of this is kitchen staff, bar staff and wait staff? Nobody seems to know and yet, any restaurant that is properly calculating its labor costs must know the allocation of these three areas of labor. Can you help?
Thanks
This is extremely variable, I can tell you. Small differences in the level of service can change the numbers by 5-10% easily. How much employees are earning will depend greatly on where you are located, too. Employee costs in some places dwarf rent and food costs in some places for fine dining.
I appreciate the response. However, that is like saying that it is impossible to generalize about food and labor costs. Generally, food costs should be between 28 - 30% and labor costs should be about the same. The costs can vary widely depending on how the restaurant is run. Still, people can quote these percentages as generalizations.
Therefore, why can't anyone break the labor costs down between the kitchen staff, the bar staff and the wait staff. With proper accounting the good restaurants must track this information.
Because, like it or not, labor expenses encompass too many variables to be standardised. Food costs are easy by comparison. To give you an example, I am currently building a restaurant in Helsinki where the labor will account for over 50% of our overhead, with the front of the house being the majority of that burden because there are no tips here and so wait staff expects to be paid in full for their labor. The cost of labor here is high, and so is the demand for service. Many restaurants here make the stupid mistake of trying to cut back on labor, which means less table turnover. You are literally shooting yourself in the foot by trying to save money that way.
My gosh KC, this answer is so overdue. I am sorry I missed this question. If it still matters there are some benchmarking standards that we apply to labor percentage. They differ from Full-service to Quick-service and it sounds like you were asking about Full-service. As a standard we use a rule of 9-10% for management labor, 8-9% for kitchen labor (as a general rule, some states with a higher minimum wage are looking more like 9-10%), 7-8% for FOH labor with a Bar (lower without a bar by about 1%) and about 3-4% on employee benefits, leaving a benchmark low of 27% and a high of 31%. There are a number of factors like sales per square foot, menu mix, prep and food technicality, and total size of the restaurant but these are good numbers to use as a baseline. I know it is extremely late, but I hope it helps. Kind regards, Bo
I've learned a lot... Thank you for the video. More subscriber to come!!
Thanks Roy! I appreciate the feedback. More videos coming soon.
thank you for your practical tips, but please could you tell me more about food cost for takeaway. Thanks in advance for your time.
very good lesson
Glad you think so!
Very helpful
I enjoyed the entire video.
Thanks JonesJr876!
Great vid! Subscribed.
Thanks Ricky Bobby (great name!)
How do we get that free book? Just now getting into the Consulting business. :)
Thanks so muc for this information
My pleasure. Thanks for the positive feedback!
does this apply to food products as well?
Brilliant! You mentioned you had a book? Where can I buy it?
Thanks for the feedback Sophie. You can get my books on Amazon. "Profit Pro Plus" is the menu engineering and food costing book or my book "On the Menu". I also have a book called "Whisper Marketing - The Restaurant Secret Formula". Sorry for the delayed response. Take care.
From where do restaurants get pepsi ? Would they buy in large quantities from stores, or would they procure directly from company to get it at reasonable price ?
Pepsi and Coke typically have two different sales divisions in most markets. One is bottling which deliver bottles and cans the other is BIB system product which stands for bag in the box. This is the product used for the fountain machines and typically mix at about a 5 to 1 water to syrup ration. That product is most often found through food service distribution.
interested on a free book ,,how does it work?
How can I get this presentation?
waw! thank you so mush...
My pleasure. Thanks you so much for the positive feedback!
How do I calculate projected/expected sales of my restaurant...when I need to make sure that my profit should be more than my investment so that I don't get into a loss?
P.S. I'm yet to open a restaurant.
Aashpreet Kaur How big is your spot going to be? (Sq. Ft)
How many tables are you planning on having?
What is your rent at location?
You can figure out how much each sq. Ft of your restaurant will need to make.
What is your average price per guest?
These questions determine how much income you will need to be making to eventually turn profit after your initial investment.
Sorry for the delay. A quick rule of thumb that I use in forecasting feasibility is to use the rule of rent as 7% to sales. The fastest way to calculate this is take your rent (if known) and divide the number by 7. Then multiple that remained by 100. This will give your monthly sales needed to hit the 7% rent benchmark. If you haven't identified a space or ideal size yet you would have to figure out what you think your PPA (Per Person Average Sale) would be and then multiply that by the number of seats in your restaurant. Then ,multiply that number by 1.2 (for full service) or 2.6 (Quick Service) - based on industry median daily seat turns. That you give you a baseline forecast of what you can expect in sales. I hope that helps. I know it may sound complicated but I don't have enough info to be more specific.
His microphone wasnt working or he did not turn it on, it was ambient natural camera mic audio. Darn.
Sorry Phil, this was one of my first videos. They're getting better. Thank for watching. I hope it helped. ~ Bo
Oh yeah? When is the last time you were on the roof?
-LT
👍👍
is any one have idear about how can reduce coast in big restaurent specialy buffet restaurent
Hey Ammar, would love to help! I can definitely help out!
@@nigelthelegend please if you can
Is there is any way to reduce to coast of this problem I have really is big business I work in but really I can't figure out how can reduce chemical product
Maybe independent restaurants can hide their profits better :p
Can i get your free book?
While the subject is meaningful and useful to many viewers, may I point out that somebody on his team should take my English 101 class in order to learn how to spell. Throughout the presentation, my attention kept being drawn to how one word was always spelt incorrectly - in the top left hand of the screen the word SOULTION is seen. It should be SOLUTION.
'nuf sed.
Wotdermatter just make sure you spell “spelt” spelled.
I appreciate the feedback. No team, just me... trying to put out useful, meaningful content for free! Sometimes my need to capture content and get it out quickly prevents me from being at thorough as I should be. I appreciate the feedback though. Kind regards, and thanks for watching! ~ Bo
This doesn’t make sense no one would be opening restaurants if they watch this video .
sorry but if your employees are "stealing" food to feed themselves you may need to look at how much you pay them. I don't care how good your food is that employee would eat eat at home if they could 90% of the time
Bullshit. It's the other way round! If an employee is coming to the realisation that they're having to STEAL food because they aren't being paid enough, then they should get a job that pays more! Or go get some education! Kitchen work just isn't very well paid unless you work your way up, but you know that when you apply for the job. There's no excuse for theft.
Lol low pay student hungry students!
Very poor sound quality
Thank you
You're welcome! I hope it helps. Best of luck to you!