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Prime Costs: Understanding and Application for Restaurants

Synergy Suite

They serve as a compass, guiding decisions on pricing strategies, menu development, and staffing levels, ultimately influencing the delicate balance between offering high-quality cuisine and ensuring the establishment’s profitability. For restaurant owners and managers, understanding and effectively managing prime costs are paramount.

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How to Wield Restaurant Food Costs to Your Advantage

MBB Hospitality

It involves tracking the cost of each ingredient, understanding seasonality, and recognizing price fluctuations. This granular approach helps in making informed decisions about menu design, portion sizes, and pricing, ensuring that each dish contributes positively to your bottom line.

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How to Calculate Food Costs in Your Restaurant

Synergy Suite

For example: $50,000 worth of initial inventory + $25,000 worth of inventory purchased – $45,000 worth of ending inventory = $30,000 in actual costs (or COGS) This calculation is more accurate than cost-per-dish because you’re using tangible inventory and purchase price numbers. Raise menu prices. Examine your menu.

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Ditch Your Hyper-Specific Menu Plan. You Won’t Regret It.

EATER

The obsessive routine helped with everyone’s anxiety: When the news seemed to change hourly in March and April, knowing exactly what was for dinner each night was a small point of control. Got the budget for it? However, most children seem to hate these tricks. Buyer beware. Pick a night for experiments. Preorder some new cookbooks.

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7 Tips to Control Restaurant Spending in 2022

Restaurant Engine

4: Take a Look at Portion Control. Does your kitchen staff serve portions that are too big? If you are over-portioning your plates, your food costs are going to explode. Make sure you know how much of your extra-large portions is being thrown away. Another of the biggest draws on your budget is staff costs.

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2023 Outlook: Trends and Challenges Restaurants Will See, Part One

Modern Restaurant Management

Rising Consumer Expectations : Recession fears will cause many consumers to be more discerning with their food and beverage budget, and bar and restaurant owners will continue to battle over wallet share. Consumers are realizing it’s a delicious wine with a good price point. – Lori Bolin, President of BrewLogix.

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Restaurant Operations Overview: What You Need to Know

7 Shifts

Portion control in the kitchen saves on inventory, which helps keep the restaurant profitable. How is the restaurant's budget broken down between key expenses like food costs, labor, and fixed costs? Ultimately, every decision made in a restaurant boils down to finances.

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