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Costing Costing – What is it?

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Costing in our context is the science of establishing how much each item on the menu costs in raw material terms. If you are selling a bottle of wine or a steak dinner, the principles are just the same. There are many factors in restaurant success, this is one of the most important. Accurate timely costings will ensure you have a viable product and that you will have a measurable element of profit.

You may be asking yourself why you should be doing any of this as you are not an accountant. The simple answer is that your accountant will have nothing to count, if you don’t get your costing done properly. Some of the building blocks of costing may look intimidating and some even contradictory to rational thought. It may take some time to get used to, but will eventually become second nature. It is a lot more complicated working out where your profit comes from if you haven’t gone through a process of costing.

The flow works like this:

1 Develop a FULL recipe for each menu item

2 Keep a current master list

3 Check what you need to cost

4 Cost everything

5 Understand the difference between stock weight and plate weight

6 Count all waste

7 Cost

8 Calculate menu price

9 Keep that master list updated

Follow these steps for every item you sell and you will be in a better position to make decisions. Again, none of this is rocket science, but it does take a bit of time to internalise the lessons if they are unfamiliar.

101 Restaurant Secrets

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