COGS
Transcript: May 14, 2015 $596,337.40 Unlike other parts of your restaurant, your COGS is nonemotional. For the most part, COGS is managed behind the scenes. Changes in the management of your COGS are tangible - you can see and feel them. Difference: $21,755.56 and 1.36 points Now What? Does your team track waste? If so, what policies and procedures do you have in place? How do you ensure the correct amount of waste is accounted for? Par levels: make a huge impact on your COGS. Operations $618,093.16 Once you see these changes, maintain! It's one of the tougher things to fathom, but product walking out the door has a huge negative impact on your COGS. Weekly vs. monthly is equivalent to a molehill vs. Mt. Everest. (Cost of Goods Sold) Rome wasn't built in a day - allow your changes to take affect. Do you use any programs (ex: My Inventory) to help assist with COGS tracking? How Much Can COGS Cost You? 5 wasted fingers = $5.49; 10 wasted fingers = $9.99; 1 wasted shake = $3.29 Responsibilities: daily and weekly counts. Are these being performed consistently and accurately? Are they intuitive and easy to understand? COGS % You get to reap the fruits of your labor! Recognize the changes and improvements. Positive reinforcement and recognition are key to positive culture and sustainability. In our case, COGS is the cost to a Zaxby's restaurant of the food and beverage products it sells. Morganton, NC COGS - which is your largest expense - can be summed up in one equation: COGS $ Team Members Operations Operations Your COGS can be found on your P&L. 35.53% The more often you perform counts, the easier it will be to pinpoint where your weakness is. What can you do with your newly freed up funds? (Re)Invest in your store and employees, instate new bonus programs, put towards a new store, go on a nice vacation, or...whatever the heck you want! Pricing: Beginning Inventory + Purchases - Ending Inventory = COGS $1,675,606.89 36.89% By Claire Collin Awareness: have you shared your P&Ls with your management team? What about your goals? Knowledge is power. They need to know where the store stands and where they need to improve Is your pricing up to date? Does it reflect changes in what you pay for your products? Theft: How Do You Know You Can Improve? Ask yourself a few questions... Sales What Next? Cost of Goods Sold COGS Accountability: hold your managers accountable for their performance. Enforce the standards and improvements you are striving for. COGS = Root of your Business Management What is COGS and why is it so important? Hendersonville, NC Have you found your weak link(s)? Great! Here's what we're going to break down and look at: Look at your past: has your COGS been increasing? Is this the result of an increase in costs or mismanagement of your goods? Use your resources: refer to various P&Ls to see where you stand. Your DC P&L is an 'apples to apples' view - those stores pay the same amount as your for their groceries. See a difference? Drill down on specific line items to pinpoint your biggest areas of opportunity. Look in the mirror: are your operations sound? What about your environment? Are they conducive to improving and maintaining a strong COGS? Training: Pay close attention to your variances. If you have an out-of-the-ordinary variance, make sure you are able to explain it. Team Members Management Operations Waste: Order too much? Results in expired and wasted product. Inflates your inventory, resulting in a higher COGS. Takes up room in your finite storage space. The more product you have, the less noticeable it will be if/when it disappears from your shelves. Monitoring: Order too little? You run out of product and spend more to replenish your stock. Also sends your manager out of the store. (S)He's not a delivery person! You may not be able to properly serve the guest. ZFI Operations $1,678,556.93 Are your team members trained on the correct policies, procedures, builds, and recipes? What training program do you have in place? Have you trained a positive culture? Cost control needs to be a part of your culture to be effective. How does wasted/mismanaged product relate to your team members? Let them know how big of an impact they make on your business. COGS / Sales = COGS Percentage These stores are 79 miles apart, are serviced by the same distribution center, and have different owners. From of COGS perspective, Hendersonville 'made' $21,755.56 more than Morganton. How do you monitor your COGS? On a daily, weekly, monthly basis?
Prezi Present
Prezi Video
Prezi Design
