Every industry comes with its own set of myths; the restaurant industry is no different. If you want to profit and prosper as a responsible restaurateur, you need to avoid myths that may pull you down and take your restaurant with it.
You get volume discounts when purchasing large quantities
When products are purchased more than it is needed it leads to theft, spoilage, extra waste and larger portion sizes. A hospitality consultant will be smart and purchase exactly what the restaurant needs. The price may be higher, but in the long run it will make a difference between cash overage and cash shortage. Neither are good scenarios for any restaurateur to find themselves in. Cash overage indicates unrecorded sales, a nightmare situation for any restaurant.
Low food costs lead to larger profit margin
Profitable restaurants are known to have high food costs. In fact, in some of these restaurants the food costs is close to 50%. It is less about low or high food costs and more about the dollars your menu generates. Mark menu items accordingly and focus on gross profit contribution instead of low food costs.
The manager or chef in charge should check on deliveries
Usually, during a busy restaurant run these two people are the least likely to have time on their hands. Check in deliveries need to have a thorough checkup performed. What restaurants can do instead is to have a designated receiving clerk to be responsible for deliveries during certain hours. A dedicated employee can log in hours without any interruption and devote their complete attention to the job at hand.
Marking the menu items is the most important job
It is important to mark each menu item to determine gross profit contribution. What you need to focus on, however, are immediate market prices. A restaurant consultant will check the local competition, evaluate income levels of customers, and gauge spending habits to gain insight on pricing decisions.
The bookkeeper is the best accountant
This is not entirely true. The bartender may be your best accountant. A bartender with their years of experience working behind the bar would know how to record liquor usage, stir sticks, glasses, toothpicks and count olives. This is not to say you shouldn’t have a bookkeeper to keep track of financial records. If a bartender is willing, however, to lend a helping hand to the accounts department, do not hesitate to use their practical insight into how accounts really work.