Do You Count? Why You Deserve Data to Increase Profit
3 Min Read By Bill Jones
It’s no secret that the most critical metric for any restaurant owner to optimize their food cost is cost of goods sold (COGS). However, counting inventory and applying most recent pricing makes it extremely difficult to calculate an accurate COGS. So much so that 60 percent of small restaurant owners do not consistently take inventory, which means they run blind to the most important metric, their profitability.
This time-consuming and error-prone process is made even more challenging with ever-changing ingredient prices, complimentary meals and waste, inaccurate counts, etc. Simply said, COGS is the most important metric for restaurateurs to consistently evaluate how well or how poorly their operation is running.
The Inventory HeadacheData science can be the difference between restaurant owners closing their doors or thriving and growing their business.
Since counting inventory and calculating food cost are such a headache, most operators choose to only count inventory monthly, a…
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