Key Cost Drivers, Part I: Restaurant POS Cost Controls for Maximum Payback

By Tricia Hoy

In any restaurant, the primary cost drivers are labor and food cost. It’s important to track them consistently and manage them effectively, but that can prove difficult without the right tools.

Reduce Food Costs. A new point of sale system should impact food cost almost immediately, simply by reducing human errors and waste. But adding inventory software, portion controls such as weights on make tickets, and other loss prevention tools, you can shave more points off your food cost percentage.

Controlling inventory will allow you to stock less, turn faster and keep better margins.

POS sales reporting can help you identify and eliminate low-margin, slow-moving items from your menu, and promote popular, high-margin items. We talked more about this in January in Avoiding Menu Bloat: The Bottom-Line Value of a Lean, Mean Menu.

Controlling Labor. Keeping labor costs down can be difficult. Use the sales history your point of sale captures to predict future sales and staff to meet your labor targets. An integrated sales forecasting and labor scheduling toolset like SpeedLine’s lets you predict the volume of business you can expect each day, by the hour—and even broken out for delivery, carryout, and dine-in.

In the SpeedLine back office, an Operations Planning toolset builds a labor plan off your sales forecast, telling you how many cooks, cashiers, servers or drivers you need to schedule for each shift in order to meet your set goals. And then, of course, tracking labor vs. sales at the point of sale helps you keep labor costs in check throughout each shift.



Posted on Mon, Jan 23, 2012 @ 14:01 PM.
Updated on January 16, 2020 @ 7:55 PM PST.

Posted by Tricia Hoy

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Tags: pizza POS, point of sale, Restaurant Management, Restaurant Payment Security

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There’s a reason pizza and delivery chains are driving the biggest changes in restaurant technology. Pizza and delivery concept restaurants are different from other restaurants, and they have complex needs at the point of sale. In this guide, gain the knowledge you need to choose the right technology fit for your restaurant.


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