Institutional, Restaurant and Catering Software Overview

FOODCO6 is a comprehensive food service cost accounting software package designed to isolate losses due to theft, shrinkage, overportioning, purchasing without specification, poor yields, over production and a host of other mistakes that effect the bottom line. Our goal is to give your management team the information they need to make correct decisions on a timely basis that will substantially decrease food cost while increasing profitability."This is a profit making organization. That's the way you planned it... that's the way it is."

Foodservice is a manufacturing business. Raw products are turned into finished products quicker in foodservice than any other industry. By developing a systemic approach to the process of inventory, procurement, receiving, recipe development, preparation, assembly and analyzing data from menu sales one finds there are three costs of doing business for any foodservice operation. From fast food to fine dining to catering to institutional foodservice the understanding of the cause, effect and interaction of each of the three food cost principles will play a key role in the success or failure of your operation.

1. Targeted food cost: This is the food cost goal of your operation. This ideal food cost helps you plan your profit. It is the food cost you must run in order to make a profit. If your operation returns an 8% profit running a 32% food cost then you will likely be losing money if food cost climbs near 40%. Food cost can't just be allowed to happen. It must be targeted or planned.

• %% Percentage---I'm budgeting a center of plate cost of 16% or my targeted cost for the NY Strip dinner is 34%.
• $$$ Dollars---My food cost budget for the year is $375,000 or my targeted cost per person for the banquet is $2.10 per person.

2. Theoretical food cost: This is the perfect food cost. It is based on the principle of buying the correct product at the right price, receiving what is paid for, preparing, producing and serving only what the guest is entitled to receive all the while maintaining adequate security measures. It does not include dollars that are lost due to waste, improper receiving, product substitutions, waste, theft, spoilage, improper yield, over portioning and the other host of lost profit pitfalls in the food service industry..

• %% Percentage---Based on sales my center of plate costs are 15.9% or at today's beef price the NY Strip dinner is 36.2%.
• $$$ Dollars---My "perfect-theoretical" center of plate costs are $3,696.00 this week or a perfect to specification event is $1.98 per person today
  

3. Actual food cost: This is the food cost that appears on your profit and loss statement. It is calculated by (beginning inventory + purchases) - (ending inventory). Read it and rejoice or read it and weep.

• %%% Percentage---My actual center of plate costs are 17.9% which is a 2% shrinkage on purchases of $15,000.00 this week. If I don't solve this problem it will cost me $15,600.00 this year.
• $$$ Dollars---An event cost (read school lunch, catered event or banquet) off only by a nickel amounts to over $10,000 per year in budget deficits or lost profits serving merely 500 people per day. How many will you feed today? What will lunch really cost you today?

Shrinkage is the enemy of profit. Shrinkage is the difference between theoretical, or perfect food cost and the actual, or real food cost. The difference between theoretical and actual in food service ranges from 2% to 15%. That is 2-15% of sales in lost profits and often the difference between a profitable food service operation and one that has closed it's doors. Every food service operation has shrinkage--this number is a management controllable. FOODCO6 is designed to give management timely reports on every item in inventory and subsequent tools to recover lost profits. Once implemented, FOODCO6 software is akin turning on your headlights at midnight. Everything is so much clearer.

Control of food cost is based upon planning. FOODCO6 software will help you establish the following profit protections.

• Planning your menu
• Establishing portions and serving procedures
• Purchase specifications and/or branding
• Determining you targeted ideal food cost percentages
• Planning and establishing receiving procedures
• Training your employees to obtain your goals
• Maintaining proper security measures to accomplish your goals
• Have your actual food cost with 1/2% of your theoretical food cost

Read more by viewing on line or downloading (Adobe PDF Format) "Planning Your Profit"