How Cost of Goods Improvement Works
We want to empower restaurants like yours to efficiently manage COGS, set realistic targets, and implement budgeting strategies that reduce spending while enhancing your bottom line and long-term success. Here is how we get that done:
Analyze Current COGS
Before implementing cost-saving strategies, we’ll conduct a thorough analysis of your current COGS. We will scrutinize every aspect, from menu size to recipe costs, portion control, adherence to batch recipes, menu engineering, and vendor ordering practices. By identifying the specific reasons behind elevated COGS, we’ll create a targeted cost of goods improvement plan to address these issues effectively.
Forecast Sales and Target Cost Percentages
Accurate sales forecasting and establishing target cost percentages are crucial elements in COGS management. We’ll collaborate with you to analyze historical data and market trends to make informed sales projections. Simultaneously, we’ll help determine the appropriate cost percentages for each menu item, ensuring a balanced and profitable offering. We will then recommend the implementation of a declining budget and potentially a full review of your recipes and menu engineering. Whether you’re optimizing COGS for your brewpub, pop-up bar, or bistro, we’re here to support you through the process.
The Declining Budget
Declining Budget
Our primary tool for controlling COGS and spending is the implementation of a declining budget. This powerful method allows you to set weekly spending budgets for specific cost centers, such as ingredients and supplies. By breaking down your budget into manageable increments, you gain precise control over expenses and can easily track your spending against targets.
