Foodival Malaysia-F&B Procurement & Cost Control’s Post

🍽️ Mastering P&L: The Key to Success in F&B Management 🍽️ In the Food & Beverage industry, understanding the Profit and Loss (P&L) statement is essential for running a successful operation. It’s not just about serving great food; it’s about making smart financial decisions to ensure profitability and growth. 📊 As an F&B Operation Management, having a deep knowledge of P&L helps me to: Control food and labor costs efficiently. Optimize menu pricing and promotions based on profitability. Track expenses like inventory, waste, and overhead to maximize margins. Identify trends and make adjustments that drive revenue while minimizing unnecessary costs. 💡 By mastering P&L, we can ensure that every decision aligns with the financial health of the business, allowing us to deliver excellent service while maintaining profitability. At the end of the day, understanding the financial details of the operation is just as important as the customer experience. Both go hand-in-hand for sustained success in the competitive F&B industry. #FoodAndBeverage #PnL #CostControl #RevenueManagement #BusinessStrategy #FnBManagement #OperationalExcellence #Profitability #MenuEngineering #Leadership #SustainableGrowth #FinancialSuccess #FnBIndustry #CustomerExperience #Opentowork

Explore the strategies chain operators are using to stand out in a tough economic climate in this Foodservice Equipment & Supplies article! Some highlights are: - Successful chains are not just focusing on pricing but are employing multifaceted strategies including new menu items, operational efficiencies, and a deep understanding of value, beyond pricing, to attract customers. - Some chains are expanding into smaller markets and leveraging food trucks as a lower-cost strategy to test and build their brands. https://lnkd.in/erQmiY65

5 simple steps to increase your restaurant's profits.. 1. Accountability of daily/weekly/monthly purchases Keep detailed records of all purchases to identify spending patterns, control costs, and optimize inventory management. This helps in maintaining stock levels efficiently and ensures you never run out of essential ingredients. 2. Monitor menu profitability on regular basis Analyze the profitability of each menu item to understand which dishes contribute most to your revenue and focus on promoting or adjusting prices accordingly. This insight enables you to make informed decisions about menu offerings and maximize profitability. 3. Actual stock analysis Utilize accurate stock tracking to prevent overstocking or shortages, minimize waste, and ensure you have the right ingredients available at all times. This improves inventory turnover and reduces food spoilage, thereby lowering operational costs. 4. Proper day- end process Automate and simplify end-of-day procedures such as sales reconciliation and cash handling to save time, reduce errors, and improve operational efficiency. This ensures accurate financial reporting and smooth transitions between shifts. 5. Financial Management Use comprehensive financial reporting and analysis features to gain insights into your restaurant's financial health, make informed decisions, and plan for future growth effectively. This includes monitoring expenses, identifying revenue trends, and optimizing budget allocation to enhance profitability.

Finding the Right Suppliers for Your Restaurant: A Strategic Approach 🍴 In the restaurant industry, a strong supply chain is not just an operational necessity—it's a competitive advantage. Our latest blog delves into the critical role of suppliers and outlines a strategic 6️⃣-step process to find the best ones for your large-scale operations. Why This Matters: The right suppliers can significantly reduce food costs, enhance the quality of your offerings, and ensure consistency across all service points. With 60% of restaurants seeking new suppliers to cut costs, according to the 2024 State of the Restaurant Industry Report, understanding how to choose and manage these relationships effectively is more crucial than ever. What You'll Learn: - Procurement Strategies: From establishing SOPs to mastering the procurement cycle, learn how to streamline operations and ensure you're getting the best value for your money. - Technology Integration: Discover how digital tools like Apicbase can simplify the procurement process, making it easy to manage orders, track inventory, and maintain quality standards across multiple locations. - Building Relationships: Get insights on not just finding suppliers but also nurturing those relationships to ensure long-term success and reliability. Whether you're overseeing a multi-site operation or just looking to refine your current supplier strategy, this guide provides essential insights and practical steps to enhance your supply chain management. 🔗 Read the full article via the link in the comments. I'm keen to hear from you—what challenges have you faced in managing suppliers, and how have you overcome them? Let’s discuss in the comments! #RestaurantManagement #SupplyChainExcellence #FoodServiceIndustry #ProcurementStrategy #HospitalityManagement

Want to cut costs and tighten up your operations? The secret? Track your variance. What is variance? It's the difference between your theoretical cost (what it should cost to sell a menu item) and your actual cost (factoring in opening stock, purchases, and closing stock). This gap highlights where you’re over- portioning or wasting resources and it’s the key to substantial savings in your business. By tracking variance, you can see which locations are nailing food cost control and which ones are slipping. Are portions too big? Is staff training inconsistent? Identifying these issues can save your group thousands by tightening up operations in your venues and cutting unnecessary waste. Take this real life example, a restaurant group found a large variance in fries at one store. The culprit? Staff were grabbing too large a handful of fries with each order. The solution was simple, introducing a visual portion guide. The result? Variance dropped dramatically, saving the venue thousands of dollars each month. Variance tracking is a powerful way to fine tune your operations, slash costs, and boost profitability across your entire group. Are you tracking variance?

5 simple steps to increase your restaurant's profits.. 1. Accountability of daily/weekly/monthly purchases Keep detailed records of all purchases to identify spending patterns, control costs, and optimize inventory management. This helps in maintaining stock levels efficiently and ensures you never run out of essential ingredients.  2. Monitor menu profitability on regular basis Analyze the profitability of each menu item to understand which dishes contribute most to your revenue and focus on promoting or adjusting prices accordingly. This insight enables you to make informed decisions about menu offerings and maximize profitability.  3. Actual stock analysis Utilize accurate stock tracking to prevent overstocking or shortages, minimize waste, and ensure you have the right ingredients available at all times. This improves inventory turnover and reduces food spoilage, thereby lowering operational costs.                                               4. Proper day- end process Automate and simplify end-of-day procedures such as sales reconciliation and cash handling to save time, reduce errors, and improve operational efficiency. This ensures accurate financial reporting and smooth transitions between shifts.                                                       5. Financial Management Use comprehensive financial reporting and analysis features to gain insights into your restaurant's financial health, make informed decisions, and plan for future growth effectively. This includes monitoring expenses, identifying revenue trends, and optimizing budget allocation to enhance profitability.

Mastering the P&L for Standalone Restaurants: Key Insights Standalone restaurants offer unique rewards but require careful financial management for success. Crafting an ideal Profit & Loss (P&L) statement is essential for optimizing revenue and controlling expenses. - Revenue: Aim for food, beverage, and other sales to cover costs, targeting 15%-25% net profit. - COGS: Maintain food costs at 25%-35% and beverage costs at 18%-24% of revenue. - Labor: Keep labor costs within 20%-30% of revenue through efficient staffing. - Operating Expenses: Rent, utilities, and supplies should total 10%-15% of revenue. - Marketing: Budget 3%-5% to attract and retain customers. - Other Expenses: Ensure 5%-7% covers essentials like insurance and licenses. - Profitability Goal: An EBITDA of 10%-15% and a net profit of 10%-20% reflects a healthy, thriving operation. Achieving these benchmarks can set up standalone restaurants for sustained growth and profitability in a competitive market. #RestaurantManagement #Finance #Hospitality #P&L #BusinessGrowth

🍽️📊 Attention Restaurant Owners! 📊🍽️ Business key figures are more crucial than ever, especially in the restaurant industry where profitability depends on precise numerical management. Many restaurants still rely on outdated methods, which just don't cut it in today's competitive environment. It's time to think like a businessperson! Embrace a professional approach by tracking key performance indicators (KPIs). Regularly monitoring these KPIs provides valuable insights, helping you make strategic decisions to keep your business profitable. Here are some fundamental KPIs every restaurant should keep an eye on: ✔️Sales Revenue ✔️Cost of Goods Sold (COGS) ✔️Labor Cost Percentage ✔️Customer Retention Rate ✔️Table Turnover Rate Remember, additional KPIs may be needed based on your specific type of restaurant and market. Stay ahead of the game and ensure your restaurant's success with the right KPIs! 📈🍴 Learn more: https://hubs.ly/Q02DRv7P0 #RestaurantBusiness #KPIs #BusinessSuccess #RestaurantManagement #Profitability #Trivec

I agree with so much in this post. I would add that in these times, we must curate our menus to provide value. I define value as not how much you get on your plate, or how much you pay for that plate, but how you feel after paying for that plate. Service and hospitality being the unsung hero of value. Top line sales are the true health metric of any restaurant. If sales are declining, usually it’s due to the after affects of chasing labor cost or food/beverage cost.

In the dynamic realm of foodservice management, the role of a talented individual is paramount. However, managing a foodservice facility requires more than just talent; it demands a comprehensive skill set that spans manufacturing and retailing. A successful food manager must possess a diverse skill set, encompassing menu development, guest service, sourcing raw materials, production, and sales. Check out my blog post https://lnkd.in/gG5kyRKe #Foodival #restaurantprocurement #inventorymanagement #foodcostcontrol #foodcostanalysis #reportandinsights #centralkitchen #foodandbeverage #recipeanalysis #foodivalmalaysia #restaurantmanagementsystem #mobileapps