Achieved 7% reduction in Food Cost for a Restaurant

Achieved 7% reduction in Food Cost for a Restaurant

Our team assisted a restaurant with one of their most pressing challenges i.e. controlling food cost to improve gross profitability.

The Challenge
As any restaurant owner would realize, it is not easy to manage an inventory which includes hundreds of ingredients and food materials. Ensuring wastage levels are kept at minimum, stocks never run short, quality and pricing is as per standard and the achievement of standard cost and profit margins is not an easy task!

The Risk
Achieving ideal food cost is the life line for any sustainable restaurant. If a restaurant starts to lose it’s margins, the accumulative effect may result in a negative impact on it’s bottom lines forcing them to shut down gradually.

How we solved the problem?
Kaem’s consultants helped the client in the following manner:

  • Re engineered inventory management and procurement processes and policies
  • Assisted client to properly document their recipes for standard costing purposes
  • Implemented PixelPoint POS with recipe management functionality
  • Automated procurement process to make the process more controlled
  • Developed reports and analytics  in system to be utilized by management for better monitoring
  • Provided functionality to enable remote access to POS reports

As a result of more robust controls, enhanced reporting and integration between systems, the restaurant was able to achieve a 7% reduction in it’s food cost. Thus resulting in a higher bottom line for their business. With their biggest problem solved, the restaurant owners are now looking to expand into more branches.