I work for a chain of pizza stores based in guildford area. I would like to bring in some more tight measures with regard to the food being used, to impress my boss! We get a set of weekly invoices from our head office, which gives a breakdown of food inputs ordered, unit price etc.. On the store computers, shift runners and managers put down the daily usage based on the stock take. Thus the usage reports could be generated weekly, monthly etc..How could i use this information to good effect? I have noticed, stores report on each and everything(like food boxes, napkins etc...)My aim is to start inputting the invoices onto a spreadsheet, and then input the store usage and find out the variance.Or, should i look at the sales aspect. See how many pizzas are sold on a daily basis, or should i say what pizza and what size. for eg: 10 large ham and pineapple. (so 15 gms of ham, 10 gms of pineapple for a large pizza) and then calculate the food cost based on it which will be an estimate of whats been used? But i am not sure if that sounds good. If anybody could suggest better ideas or ways of this would be great. Has anyone got an ideal spreadsheet that i could use to make this happen?
I am planning to use thetemplate attached, but not sure if this will suit me.
My advise would be to first see if you can use the available reports from both your accounting and till software. Problem with management accounting using complex excel spreadsheets for small businesses is that sometimes costs to do the exercise is more than the savings identified in waste reduction.
Ps also need to think about non quantative costs sich as likelihood of someone returning to your restaurant if you start being tight on the number of olives they can have on their pizza.
Dalbir
Your stock take isn't going to tell you a lot unless you have other figures. On your stock take you have a variance figure what must come from either discrepancies in prices or in quantities not being put down properly on your in-house system unless you have itemesed sales and the varience relates to this. Either way this figure should not be a high percentage, if it is something wrong somewhere. Ok, next thing. You MUST calculate your food costs, you must know what GP you make on what product and what your costs are. Once you have these calculations you must make sure all employees are sticking to the portion controll set by you/the company so you know your calculations are always right. From here if you get the sales figures broken down to items you will see how much you used of all your products. So once you had an accurate stock count take this as your opening figures and at the next one you will see if there is any differences and which differences are major. That's where you can start. Let's say according to your costings you use 80g cheese on your pizza and you sold 1000 pizzas in a month you should have used 80kg of cheese, if according to your stock take the usage was 120kg you know that's where something is gone wrong. So yes you have to see the sales side, cannot just say we used 120kg cheese this month so go easy on it because you don't know how many pizzas you sold, maybe the 120kg is actually 10% savings on cheese... Portion control is essential, especially if you work with high volume sales! To negotiate better prices with suppliers is probably not your job but this an other way to achieve better GP. Also costing is essential! If your company has not got these systems in place you will have a never ending massive job to do...if you really want to start with it. If you have any other questions I can help you but I have to warn you again it is not going to be easy!
Thanks for the reply. Yes, there is a lot of reports that i can pull out for the aforesaid purpose. Like i mentioned the food comsumption report for any periods, types of pizza sold etc.. We also have the ideal food cost reports that can be generated as well which shows the variances. The only problem is it will depend on whats been put on the store computers. So if theres a theft or food being over used or wastage, they could possiblly show high stock to cover this up!
Yes, what you mentioned here makes sense. It never looked easy to me, but wanted a second opinion to what i thought. Thanks for commenting.
Thanks for your reply. I think what you mentioned here is the only possible way. Like, generate a report to show how many pizzas are sold in a given period. Based on their size and type, put in an ideal usage for each item(portion control figures). And once you arrive at the total food cost, compare it to whats been put on the store computer and see if theres a difference.
Yes, there is portion control in place, but i think, there are no strict measures in place to see if this is being followed closely. Especially a newly trained person under little supervision, could be a bit generous whilst making their pizzas in their first 3 months.
The reason why i thought its still possible is coz of the fact Mcdonalds and burger king do this on a monthly basis and rumours suggest its highly effective. But i am not sure, how it is implemented to such a great effect to even pin down to the minute items and given the work load is humongous. Do you think, if i try and make an attempt with whats all mentioned above, will i succeed, given if its just one store?
If you are ready for it... What is it you want to achieve? Is it higher GP or just in general trying to see where you could save stock/money? You possibly have a PLU system on your tills so you should be able to generate a report called itemised sales PLU or something similar. That will show you what has been sold and your stock count shows what has been really used. If you have calculations for ingredients you can work ou tfrom the sales figures how much of each ingredient you should have been using and than you have your stock take figures. The difference is where you can improve. But this is not going to tell you which actual menu item is where you are using too much of a given ingredient well unless it is a specific ingredient used only on one dish. But you most definitely will see what ingredient you used more of than you supposed to. From here it is only the strict control what works. Your example of newly trained being generous in the first few month is not an acceptable answer, it is your job to make sure he/she is using the right quantities! (place for improvement there) McDonalds and Burger King good examples their magic is wherever you go you will get the same spec. burger with your 2 slices of gherkin(never 3) ! that is tight control again! Also their training is exeptional. Did you ever work in McDonald's? Ask someone who did how it works and you will see why they are so effective! (apart from the thing that they are secretly a property business in my opinion) So a little to do list for you: -calculations -stock count and checking the difference -strict portion control (that is every second of every day!)- you don't have to give less but you always have to give the same so you know your calcs are right! -improved training will result in reduced waste and better control -if you don't trust the employees you always can do random line checks or do one at close and one when you open so you see if stock disappeared let's say overnight. -re-train people if necessary
Been there ,done that and improved GP significantly in high volume branded operation so feel free to ask if you need particular details...
! We get a set of weekly invoices from our head office, which gives a breakdown of food inputs ordered, unit price etc.. On the store computers, shift runners and managers put down the daily usage based on the stock take. Thus the usage reports could be generated weekly, monthly etc..How could i use this information to good effect? I have noticed, stores report on each and everything(like food boxes, napkins etc...)My aim is to start inputting the invoices onto a spreadsheet, and then input the store usage and find out the variance.Or, should i look at the sales aspect. See how many pizzas are sold on a daily basis, or should i say what pizza and what size. for eg: 10 large ham and pineapple. (so 15 gms of ham, 10 gms of pineapple for a large pizza) and then calculate the food cost based on it which will be an estimate of whats been used? But i am not sure if that sounds good. If anybody could suggest better ideas or ways of this would be great. Has anyone got an ideal spreadsheet that i could use to make this happen?
