Introduction to Cost Control
COST CONTROL
INTRODUCTION
In our business every decision taken will be reflected in final results. That is why, as every area in a restaurant is related, we must pay special attention on implementing a structure according to the organization’s features to make sure it is profitable.
Running a restaurant requires a set of procedures to optimize resources in order to obtain an economic benefit while satisfying our customers’ needs. We have to develop this administrative procedures through different stages: 1. Planning: What are we going to do? 2. Organization: How are we going to do it? 3. Integration: Who is going to do it? 4. Direction: What is being done? 5. Control: What has been done?
In this subject, we are going to focus in the stage of “Control”, in which we measure every process in the restaurant, so we can identify where mistakes are originated, establish objectives and goals and make sure they are accomplished.
Control is the last stage of the administrative structure and it is a way to compare results with planning, so we can find the way to improve them. This process is necessary to know the real status of the restaurant, otherwise we can’t be aware of details that could be hidden in the everyday operation. To start this basic process we need to establish standards, evaluate results, correct and feedback permanently.
Cost control is based on three principal elements: * Raw material * Direct manpower * Manufacturing overhead (gas, electricity, indirect manpower, etc.)
Regularly, the most common causes for increased costs are: * Storage:
Deficient receiving process
Poor food rotation
Stealing
Bad control on exits * Kitchen:
Bad waste control
Recipe monitoring
Unauthorized food consumption
Food orders misuse * Service:
Promotion of high-cost products
Food orders decontrol
Uncollected products
Complimentary gifts
We seek for lower costs, less time for processes and reducing
INTRODUCTION
In our business every decision taken will be reflected in final results. That is why, as every area in a restaurant is related, we must pay special attention on implementing a structure according to the organization’s features to make sure it is profitable.
Running a restaurant requires a set of procedures to optimize resources in order to obtain an economic benefit while satisfying our customers’ needs. We have to develop this administrative procedures through different stages: 1. Planning: What are we going to do? 2. Organization: How are we going to do it? 3. Integration: Who is going to do it? 4. Direction: What is being done? 5. Control: What has been done?
In this subject, we are going to focus in the stage of “Control”, in which we measure every process in the restaurant, so we can identify where mistakes are originated, establish objectives and goals and make sure they are accomplished.
Control is the last stage of the administrative structure and it is a way to compare results with planning, so we can find the way to improve them. This process is necessary to know the real status of the restaurant, otherwise we can’t be aware of details that could be hidden in the everyday operation. To start this basic process we need to establish standards, evaluate results, correct and feedback permanently.
Cost control is based on three principal elements: * Raw material * Direct manpower * Manufacturing overhead (gas, electricity, indirect manpower, etc.)
Regularly, the most common causes for increased costs are: * Storage:
Deficient receiving process
Poor food rotation
Stealing
Bad control on exits * Kitchen:
Bad waste control
Recipe monitoring
Unauthorized food consumption
Food orders misuse * Service:
Promotion of high-cost products
Food orders decontrol
Uncollected products
Complimentary gifts
We seek for lower costs, less time for processes and reducing