
Use the following calculations to help you evaluate the price of each cocktail:
First, calculate your liquor cost per ounce:
Bottle price / ml per bottle = Liquor cost per ml
For example, a standard bottle contains 750ml. If the bottle costs $55, the liquor cost per ml would be $55/750ml = $0,0733 per ml.
Next, calculate the total beverage portion cost:
(Liquor cost per ml*Amount used ml) + Cost of other ingredients = Total beverage or cocktail cost
So if a drink requires 50ml and garnishes cost roughly $0,80, the total beverage cost would be ($0,0733*50) + $0.80 = $4,467.
Lastly, estimate the price you should charge:
Total beverage cost / Target pour cost (usually 20%) = Estimated price per drink
So if the beverage cost is $4,467 then a price that gives you sufficient profit would be $4,467 / 0.2= $22,33.
This should give you a clear idea of how much you should charge for a specific drink or cocktail. However, rather than concluding your analysis, use these calculations to begin it.
If you base your pricing solely on price, you can end up charging less than you should consider your target market and competition.
So, while you should consider your costs, try to determine the most you can charge based on your location, competitors, and customers profile. Then, play with rates that are between what your buyers are willing to pay and the bare minimum at which you are willing to sell.
PLUS 8 Methods to Combat Restaurant Theft
Although employee theft in restaurants is a major issue, it is always possible to avoid it from happening. Here will be provided additional 8 ways how to deal with it.
1. Paying your staff well and cultivating open communication.
Take a close look at the workplace you've established as an employer before you start blaming your staff for your failures and putting cameras everywhere.
Most thefts occur as a result of an opportunity that has been presented. You might assume that the major reasons are a lack of inventory control and mild penalties for stealing.
Employee theft is mostly motivated by emotions of undervaluation and mistreatment at work as well as underpayment and underappreciation.
They'll be less likely to take what is purportedly yours if you pay them well, offer benefits that enhance their quality of life, and give them space to talk about their struggles.
2. Free staff meals.
Offering your personnel a complimentary, satiating, ideally healthy, and delectable supper before their shift begins is one approach to stop them from stealing and nibbling away your food stocks.
For your team's snacks, you can also supply some extra treats from your stock.
3. Make policies (SOP) and communicate them to your staff.
Make it known to your staff that employee theft is never permitted. You might also describe your policy on staff theft and the kinds of safeguards you've put in place to avoid it, such as cameras and inventory checks.
This will demonstrate to your staff that you are attentive and aware of fraud techniques.
Additionally, you may establish policies and keep an eye on how they are being followed.
Make use of an app that requires your staff to log their arrival and departure times.
Create a comping strategy and set up a daily or weekly budget for complementary goods so you can monitor your sales targets.
Establish a phone and break policy, but recognize that your team needs time to check in on social media or send a ride-hailing text.
Inform staff members that loyalty cards are solely for customer usage and that it is improper for them to scan their own cards while making transactions.
4. Security Cameras.
Installing security cameras prevents your employees from stealing. It is an obvious approach to let your employees know they are being watched.
According to a Washington University research that followed the behavior of workers who were subject to electronic monitoring in 400 restaurants throughout America, surveillance decreased employee theft on average by 22% (saving $24 per week), on average. Theft decreased, even more, three months after installing surveillance, saving $48 each week.
However, before you begin placing cameras in your establishment, be sure that any video monitoring complies with the law and protects the privacy of both staff and clients.
5. Limit who has access to the safe and cash drawers.
The safe should only be open to the manager and owner of the restaurant. In some cases, the safe's combination is only known by the owner. The likelihood of theft decreases as the number of hands handling the money decreases.
6. Proper POS & safe access
You can consider half of your checkout theft prevention done if you install an automated POS system. You can keep track of the overall sales you have made with the aid of an intelligent POS system.
You can restrict access to your POS system so that only you and the manager have it. Without the manager's or owner's password, an order cannot be modified once it has been placed and transmitted to the kitchen or bar. This will stop staff members from revising and canceling the bills.
Also, think about limiting access to the safe to the restaurant's owner and manager. The likelihood of theft decreases as the number of hands handling the money decreases. Even if there are some inconsistencies, you already know who to contact.
7. Invest in reporting and inventory management systems.
Sadly, using preventative steps will only reduce employee theft; they won't get rid of it. Only if the bartender and kitchen workers are aware that orders shouldn't be placed without a ticket can a POS system assist you.
Your final plan of action is to carry out routine reporting and a physical inventory check.
Because no one is looking, staff steal frequently. Employee theft from a restaurant is made simple when the owner is not actively involved in the operation and doesn't conduct audits.
Every pre-opening, shift change, and closing time, conduct daily inspections. At the end of each shift, ask your staff to take an inventory and record the amount of food that was wasted.
Reporting and inventory-taking may be done quickly and efficiently using digital checklist management software.
The kitchen workers will be careful to maintain track of the food inventory if they are aware that they are responsible for it. Additionally, it promotes accountability for proper food preparation to reduce waste.
8. Acquire non-disclosure agreements from staff members.
Finally, you might want to have a nondisclosure agreement signed by the kitchen crew. Once more, having a wonderful boss can be to your benefit. If you treat your employees well, they will typically return the favor.
3 SOLUTIONS THAT CAN HELP YOU TO SET PROPER BUDGETING:
1. Set your accounting period
Before you begin budgeting, you must first determine your accounting period.
The amount of time covered by your company's financial statements is referred to as an accounting period.
A restaurant can typically use one of two periods: a 12-month duration or 13 of four-week periods.
2. Gather data
If you've determined your accounting period, make a list of the main data points you'll be concentrating on in your budget. This covers sales income, food and beverage costs, employee salaries, leases, and expenditures, among other things.
Here's a list of all the expenses you'll need to factor into your budget:
Fixed costs – Leasing, insurance, and loan payments are examples of long-term expenses that will not change.
Semi-fixed costs – Salaries, energy bills, food prices, and other fixed costs that fluctuate month to month.
Variable costs – Marketing, taxes, and delivery fees are examples of costs that lead directly to changes in sales revenue.
It's helpful to know which costs you can regulate and which users can't while budgeting.
3. Set budgeting targets
You can forecast future income and expenditures based on previous performance to create budget targets.
Examine your prior sales records for patterns and discrepancies, but don't forget to consider the following aspects while you do so:
Competition: competitor marketing, competitor pricing, new neighboring F&B businesses, menu changes.
Sales events: promotions, events, giveaways.
Economic trends: food costs, minimum wage, taxes, supplier pricing, etc.
Tips on reducing food waste:
Portion sizing – If consumers are often leaving food on their plates, the serving size may be too large. To avoid leftovers, use portion control methods to provide reasonable-sized servings.
Kitchen preparation list – Maintain a regular kitchen prep list for the cook, detailing how much of each ingredient is required to produce the meal. Without it, cooks tend to over-prepare, resulting in excessive food waste.
Reuse the ugly – make useless food into something else Instead of tossing away stale bread, make croutons, breadcrumbs, or bread pudding!
Hospitality managers must understand accounting, marketing, and regulatory matters, as well as food and beverage hygiene, manufacturing, and service processes, in order to successfully monitor costs.
Your goals as a Restaurant / Outlet manager, owner, regardless of the rank, would require cost control, which can clash with the expectations of other staff members at times. This course will show how to analyze the operations in detail and decide the best action to be taken. This course was created to discuss effective cost management techniques and practices with everyone who wants to refresh or refine their understanding of cost control and everyday problems and find the way how to solve them. Might be you already know these issues in your outlet, but you just can't find the solutions for it. Might be you didn't even realize you have these issues in your restaurant or bar until it was mentioned over here.
In the course, will be discussed the problem and next to each problem various solutions that you can implement. Will be provided instructions on how to prepare, analyze, and view the various cost management facets of food and beverage activities, as well as critical financial data to achieve the company's targets.