About Commercial Kitchen Profitability

Making money in your restaurant kitchen is based on many factors. A delicate balancing act must take place between all the income flows and the expenses. Any part of this out of balance could cause a bad effect on your bottom line.

Factors to make your profits go up.

Food cost

Food cost is probably the most visible item in your profitability equation. Knowledge of the cost of food is essential, as a beginning to keeping food cost down.

Labor

Labor is a fixed cost necessary to your budget, but intelligent use of labor dollars can make or break a profit margin. Schedule smartly and keep on top of labor to increase your profits.

Waste

Control of waste is a good way to find vanishing dollars. If unchecked, waste can add up to a large percentage of your profit margin. Careful monitoring and training is essential in controlling waste.

Pilferage

Only the most naive managers don't allow for pilferage. Whether something small like eating unauthorized and unaccounted-for food, or outright stealing, pilferage must be accounted for and brought under control.

Advertising

Intelligent advertising is an effective way to increase profits. All restaurants need new business, and profits will increase if sales increase.

Customer service

Taking care of your customers is the absolute best way to increase profitability. Regular customers are the backbone of the restaurant industry, and must be cared for if they are to keep coming back and spending money.

References

• Kitchen Profitability: How to figure food cost