By: Rebecca Adlington, Oracle Hospitality
Oracle Hospitality has teamed up with Technomic to survey more than 200 independent operators and chains to get to the root of many profitability problems in modern food and beverage operations; proper cost control. We have compiled the survey responses in our latest report, Cost Control in Food & Beverage: How Technology Can Help Maximize Profits.
Our report finds that labor and inventory costs, on average, combine to account for more than 50% of a restaurant’s revenues. This striking statistic prompts an important question - if these areas have such a large magnitude of impact on a restaurant’s bottom line, what is being done to prioritize their control, and more importantly, what can be done to reduce these costs?
The research findings are organized around 3 key areas: labor, inventory, and loss prevention, with each examined respectively to provide clear insight into their associated dilemmas. Other insights from the paper quantify the effect of poor cost management, and look at detrimental activities such as menu pricing increases, over portioning and food waste.
While the challenges of controlling costs are undeniably many, the research supports an overwhelming resolution: restaurants must gain an understanding of cost management in the context of their operation, consider systematic remedies to make management more efficient (especially in the form of technology) and ultimately, gain better control.
To download a copy of the report today, click here, and if you would like to hear further analysis from the Oracle Hospitality team, don’t forget to sign up for one of our upcoming webinars on August 30th at 11am ET and 7pm ET, where we will discuss the findings in more detail and explore how they relate to you.