Lower Food Cost Overnight with 1 Simple System
Lower food cost 2-3% overnight with one simple system. In fact, it’s an industry insider secret your restaurant food distributor probably doesn’t want you to know about. Watch this video or read below to learn how to lower food cost with one simple system.
One of the best ways to make sure you’re stretching every dollar and lower food cost is to order a descending dollar report. You can get this from your vendor. It shows what you spent the most money on down to the least amount of money. This isn’t necessarily in volume, but in price per item. It’s not that I ordered 10 cases, it’s that I spent $1,000 — which could have been 1 case. Based on these figures, you can try to find like or better products at cheaper prices, which can have a huge impact on your business and your bank account.
Don’t beat up your distributor and demand lower prices. (That’s a prime vendor agreement – covered in another video tip!) Instead, take a look at what you’re purchasing and if you change some of the item, can you lower food cost?
Go to your broad line distributor, or all of them, and request a descending dollar report, showing you what you spend the most money on to what I spend the least amount of money on.
Your top 10 items that you purchase represent 50% of your purchasing.
Order a descending dollar report from your vendor to review what you spent the most money on down to the least amount of money. This isn’t necessarily in volume, but in price per item.
Based on these figures, you can try to find like or better products at cheaper prices, which can have a huge impact on your business. For example, you can take something you usually spend $3,000 a month on and get it down to $2,500. I’ve had members cut their spending by 5, 7, even 10 percent.
Watch the video above for a thorough explanation for what the descending dollar report is, how can you get it from your vendors and how it to use it as a tool to lower food cost.
If you would like to learn more systems to lower food cost, read our free special report, Breaking Away from the Insanity: How to easily take control of your restaurant and make more money. Download it here. Be sure to visit our YouTube channel for more helpful restaurant management video tips.