And unfortunately so many restauranteurs only look at that last the number, the actual food cost, as a gauge of success. Also, if you look at it like that, you can see that all revenue is different, which is why you have to look at product mix as well.
That’s the only way you lower ideal is by pushing stuff like that. Same $5000 all in bites, but $4250 gross profit. So if you sell $5000 in wings, that’s $2500 in gross profit. That’s an ideal food cost of, of course, 15%. Flip side, all you sell is bites, at let’s say a 15% food cost. If all you sell is wings all day long, and they are only being sold at a 100% markup, that’s a 50% ideal food cost. That will drop the ideal significantly, but it will also lower sales of course. But if ideal is 40% then I wouldn’t expect you to be able to get any lower than 40 without cheating the customer. If the variance is 0 or negative, then they should be cheering you. At the end of the day, the variance is what you have the most control over. If they think there is anything major you can do at the store level to lower ideal, then they don’t understand how food cost works. And if you want to drop actual below ideal, ie negative variance, that means under topping. I don’t know if that last ones an option at your franchise. And you can’t really drop ideal without upselling lower cost items. What’s your IvA target? In my time at Doms I was in constant conflict with labour vs stats targets but food cost really is controllableġ% variance is pretty huge.
Dominos stock 5000 increse driver#
If not, speak you your GM etcĤ) Theft - drinks from the chiller? Missing sides? Everything costs moneyĦ) Driver Accuracy (assembly/ delivery) - minimise missing/ re made ordersħ) If you want to lower your ideal cost then look at pushing ‘cheaper to make’ items/ deals - the app does this automatically Assign someone to catch trays to make sure as much is used as possible.ģ) Employee meals - is there a policy? If so make sure it’s followed. IvA is the difference between the theoretical (ideal) cost of the products you sell vs the actualĬost of the products you sell based on entering your deliveries, transfers and inventory counts.ġ) Waste - focus on sensible ordering staggered across your weekly deliveries to reduce product going out of date/ easier to maintain stock rotation etcĢ) Yields - correct amount of cheese/ placed toppings! Talk about spreading toppings with the makeline.
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