Facts About The Restaurant Industry

One very important fact about the restaurant industry, is the fact that you absolutely need to keep consistent portion control. Ingredients are purchased in weight, count and volume. You will need to calculate the cost of all ingredients in a recipe. Total the costs and divide this by the food cost you want to charge for a menu item. This way you will have a price for your menu for this item.

In the restaurant industry, you will need to count all ingredients. As an example, a cheese burger with tomato, lettuce, and mustard on a wheat bun with a small bag of potato chips has a total cost of $2.10. If you want to get a 30% food cost for this item, you will need to divide $2.10 by 30 % (.30), which will give a menu price of $7.

Try to keep your food costs between 22 and 34%. If your food cost is 22%, it will mean you will be spending 22 cents of every dollar for food. This would leave you 88% of every dollar to cover labor and other expenses.

If you want to use the factoring method, you can multiply the cost of ingredients by three. This will only give you the cost of the menu item and not include other costs.

When you use gross margin pricing, the formula is profit minus the cost of goods sold divided by the net sales. For instance a gross profit margin of 33:1 means that for every sales dollar, you will have 33 cents to cover other expenses. This is the best for calculating a dish with a high ingredient cost in the restaurant industry.

The Prime Cost method works by adding the cost of labor and cost of food, then add a percentage for profit. This method is good in the restaurant industry for dishes that need a lot of preparation.

Competitive Pricing matches what other restaurants charge for the same product, with what you charge. Compare the prices by studying the menus, and price your product not much higher or lower than what others are charging.

The restaurant industry views combination pricing as a method that uses all methods- factoring, gross margin, prime costs, and competition. They try to balance prices of the competition with your costs and what you need to make.

ChefTec Software- will allow you to customize reports and print out inventory reports, recipes, make up ordering lists and analyze recipe and menu costs by portion.

PC-Food II- Is an inventory and marginal management system for use in all food service establishments. You can calculate and keep food costs down, and keep track of selling prices based on the margin you desire. You can generate displays and reports, export files. You can use already programmed recipes, or add your own recipes to the list and generate them whenever you want them. This and so much more is available on this software.

You will find plenty of restaurant software on the internet.

Posted in Uncategorized | Comments Off on Facts About The Restaurant Industry

EPoS Systems For Contemporary Restaurant Industry

Creating your mark in restaurant industry is not an easy job. This sector of hospitality is highly competitive and labor intensive. That is the downside of running a restaurant – it takes years to build up a strong reputation but it wouldn’t take less than a week for your customers to remove you from their good books. There are several aspects that can annoy a customer like less than excellent food quality, unsatisfactory mannerisms of your hotel staff, mixed up orders – the list can go on.

With the introduction of EPoS technology things have changed. EPoS stands for electronic point of sale. EPos has simplified business process in various sectors of our industry; however, its contribution in organizing transactions in catering industry has been most remarkable. In fact, you might find that the EPoS terminal installed in a fast food store or restaurant is more advanced than those employed by other forms of retailers. Restaurant EPoS systems are specially customized for specific purposes. It allows the house staff to interact with chefs and waiters attending the kitchen. EPoS also facilitates instant tracking and processing of orders and overall management of stock.

Restaurant EPoS facilitates effective communication transmitted via wireless terminals. This wireless system connects the staff stationed at various parts of a hotel or restaurant. Thus messages and orders can be passed on without any delay. The waiter who takes the order enters the details through EPoS machine, and the list will be instantly printed out at the terminal installed in the kitchen. The system reduces the clutter created by the staff members as they need not move around anymore while attending to the customers and executing their orders.

By using EPoS machines, the cashier can speed up the entire billing and payment procedure. This saves a lot of time for the customers as they can clear off immediately after finishing their food. Consequently, the customers waiting for tables can now get through the queue quite faster.

Roadside restaurants and fast food outlets have truly benefited from the implementation of EPoS systems. This is especially true in case of drive- through restaurants and quick service fast food stores. In such places, there are lots of customers to be satisfied but within an extremely short span of time. Right from the process of recording orders to paying the bills, the entire communication between the in-store personnel takes place through wireless messaging device. This makes the working quite faster and allows the restaurant to serve more number of customers. Even the customers become happy because they need not wait for their turn to have the menus delivered or bills processed. Also, the staff can avoid making mistakes in taking orders and creating bills.

Posted in Uncategorized | Comments Off on EPoS Systems For Contemporary Restaurant Industry

Investing in Restaurants – Trends in the Restaurant Industry for 2011

From food trucks to back to the farm restaurants, as the restaurant industry climbs back from the abysmal years of the economic crash, there are investment opportunities galore for investing in restaurants. Investors who want to start investing in restaurants might want to take a look at predicted trends in the restaurant industry. Some formerly widely popular restaurants have peaked out, but there are some emerging trends that are slated to explode the next few years. So, what are the big ideas expected for 2011 and 2012?

Mobile food has been big business in 2010. Food trucks touting everything from tacos to sandwiches to Italian cuisine have found success with low overhead and the ability to take the food directly to a crowd of potential customers. Well-known restaurants have expanded into this area with catering and recognizable brand food trucks as well. 2011 is expected to bring increased governmental regulation of this niche of the restaurant industry which may affect profit margins. However, it is still expected to be a good bet for investing in restaurants.

Restaurants that show the farm sources for their food or are located on farms have also soared in popularity. Farmers have been made into celebrities; celebrities have become farmers in an attempt to follow up massive sales in books about returning to whole foods. Pleasing health food fans, environmental activists, and the tide of citizens wanting to return to real food rather than highly processed chemical equivalents, these types of restaurants or restaurant chains are expected to perform well for investors venturing into investing in restaurants.

Southern comfort food, soul food, and Old Italian favorites are also making a strong come back. When the economy has tanked and everything is feeling somewhat uncertain, people turn back to the favorites that marked their childhood memories (or, what they wished their childhood memories were). Investing in restaurants that specialize in these types of food can be very profitable. However, with any of these trends, investors should do appropriate amounts of research themselves. Some well-known comfort food restaurants are in heavy debt and have cut all expansion. Some food trucks do not maintain an efficient enough bottom line, even with low overhead, to sustain substantial profits. The location of a farm restaurant may not have access to a large enough customer base. There are exceptions to every trend, especially in the highly risky business of the restaurant industry.For more information on investing in investment opportunities usually or normally not found in the marketplace

Posted in Uncategorized | Comments Off on Investing in Restaurants – Trends in the Restaurant Industry for 2011