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Control del Costo

Controlando el costo y el gasto
by

Federico Paris

on 5 June 2015

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Transcript of Control del Costo

The Roll of the Manager
OPTIMAIZING COST OF GOODS SOLD (COGS)
You are responsible for ensuring that your restaurant has that special Campero feel—the warm, friendly, come-back-again feeling that our customers have grown to enjoy and look forward to sharing with their children.
 Schedule labor as required by anticipated business activity while ensuring that all positions are staffed when needed and labor cost objectives are met.
 Be knowledgeable of restaurant policies regarding personnel, and administer prompt, fair, and consistent corrective action for any and all violations of company policies, rules, and procedures.
 Fully understand and comply with all federal, state, county, and municipal regulations that pertain to health, safety, and labor requirements of the restaurant, employees, and guests.
 Develop, plan, and carry out restaurant marketing, advertising, and promotional activities and campaigns.
BENEFITS OF A GOOD INVENTORY
 Knowledge of actual stock of every product, utensil, and packaging
 Appropriate product turnover management
 Minimal disposal of product
 Waste prevention
 Inventory based on sales volume
 Food and paper cost is reduced
 Control over restaurant costs and expenses
RISK OF A BAD INVENTORY
 Real stocks that do not match with computer report
 Loss, deterioration, or expiration of products
 Increase in operations cost of restaurant
 Increase in restaurant expenses
 Low restaurant profitability
ORDERING PRACTICES
 Importance should be given to ensure that inventory count is reliable, since new orders will be based on the inventory.
 Take into account the storage capacity of the restaurant.
 Consider product expiration.
 Take into consideration holidays and special orders when placing orders.
 Observe supply frequency.
 Use reorder points.
HOW TO OPTIMIZE PROFITABILITY??
There are many ways to optimize profitability, for example, increasing sales, optimizing costs or a mix of both. See some examples below:

INCREASING SALES (income)
Actual:

$15,000 (Income) - $10,000 (Expense)= $5,000 (Profitability)

Increase of sales with stable expenses:

$20,000 (Income) – $10,000 (Expense) = $10,000 (Profitability)

OPTIMIZING EXPENSES (Costs/Expenses)
Actual:

$20,000 (Income) – $10,000 (Expenses) = $10,000 (Profitability)

Optimizing Expenses:
 $20,000 (Income) – $7,500 (Expenses) = $12,500 (Profitability)
CONTROL AND OPTIMIZATION OF EXPENSES
Manager responsibilities
 Understand completely all policies, procedures, standards, specifications, guidelines, and training programs.
 Ensure that all guests feel welcome and are given responsive, friendly, and courteous service at all times.
 Ensure that all food and products are consistently prepared and served according to the restaurant’s recipes, portioning, cooking, and serving standards.
 Achieve company objectives in sales, service, quality, appearance of facility, and sanitation and cleanliness through training of employees, and creating a positive, productive working environment.
 Control cash by adhering to cash handling and reconciliation procedures in accordance with restaurant policies and procedures.
 Hire, train, and make employment hiring and termination decisions.
 Fill in where needed to ensure guest service standards and efficient operations.
 Prepare all required paperwork, including forms, reports, and schedules in an organized and timely manner.
 Ensure that all equipment is kept clean and in excellent working condition through personal inspection and by following the restaurant’s preventative maintenance programs.
 Ensure that all products are received in correct unit count and condition and deliveries are performed in accordance with the restaurant’s receiving policies and procedures.
INVENTORY PROCEDURES
The main purpose of an inventory count is to determine the value of the
cost of goods sold
(COGS)
and of the restaurant’s stock on hand. Having organized handling methods and accurate counts will assist in maintaining an optimum level of stock and identify the deficiencies related to overstocking, low turnover, and expired products.
An inventory is the accurate count of the goods and products that are managed in the restaurant.
Good inventory management is essential to preserve our quality products. Inventory management and control begins with product reception (raw materials, ingredients, and/or final products), appropriate storage, adequate turnover, and product preparation.
PROCEDURE FOR INVENTORY COUNT
1. The night assistant manager conducts final inventory after the restaurant has closed.
2. Use the count sheets generated by the computer system to conduct inventory count; the products to be counted will be listed. This sheet is to be filled out by carefully jotting down the stock that is on hand.
3. Avoid cross-outs; try to write numbers clearly to avoid mistakes in the information that is presented.
4. The manager will proceed with the inventory count, beginning at storage areas (walk-in cooler, freezer, and dry storage), then in the production areas, and lastly in the dispatch area.
5. Make sure that the different areas have been equipped and supplied appropriately to ensure that the products in all areas have been taken into account and data is not duplicated.
6. Conduct an accurate inventory the first time to avoid loss of time by unnecessary revisions.
7. Proceed to enter count into the computer system after finishing inventory of products that are listed on the count sheet.
Entering the Inventory Count in to Menu Link
1. Verify that purchase orders have been registered into the system.
2. Check invoices and/or deliveries, according to delivery date and supplier.
3. Pay special attention to products that were not received, credits from suppliers, or changes in the amounts delivered.
4. Register the transfer of product loans between restaurants.
5. Register the products that were wasted during the day.
6. Start entering data into the inventory system. Check the units of measure used in the system before entering data of counted product.
7. After entering the count into the system, proceed to generate a snapshot of the inventory variance.
8. After making sure that the inventory that was entered into the system is verify, proceed reconciling (refer to POS system operation manual).
COST CONTROL MANAGEMENT
CLASSIFICATION OF EXPENSES
Variable Expenses
Expenses that vary proportionally to the quantity of sold products. The increase or decrease of this expense is proportional to the sale.
Example:
 Salaries and Wages
 Repairs and Maintenance

Fix Expenses
Most of the time it has no direct relation with the quantity of product sold. Fixed expenses are not altered when sales volume varies.
Example: Restaurant Occupancy Cost
 Utility Services
.
FACTORS THAT AFFECT COST
1. Inventory Management
 Raw material cost
 Accuracy at receptions of raw material
 Storage
 Rotation (FIFO)
Handling of raw material

2. Production Area
 Yields
 Process follow-ups
 Recipe accuracy
 Waste control
 Quality control of products
 Calibration and maintenance of equipment
 Instilling awareness to employees on the optimization of resources, equipment use, and accurate production processes

3. Dispatch Area
 Order accuracy on packaging
 Package rotation and use
 Complying with recipe quantities
 Knowledge of menu distribution
 Use of monitors and printers
SUMMARY
Do not put the quality of our product at risk because of money-saving or minding costs and expenses in an inadequate, negative, or misunderstood manner.
Keep a close control on the direct labor in the best possible way in order to control the restaurant’s expenses.
The variations in inventory and distributed product are the principal elements to have in mind concerning the restaurant’s costs.
The restaurant’s profitability can be enhanced by optimizing expenses and costs.
PORTION CONTROL

Portion control in preparing menu items ensures consistency in the product and that the cost of the item is consistent with the menu price.

If extra portions are used without additional charges, the COGS is going to be higher than what was planned.

Employees must be trained in proper apportionment and the reasons behind it.
There are other ways to limit theft:
Keep all doors locked that are not being used as an entrance and exit by your guests.
Do surprise checks on the cash register during the shift.
Show up at the location when the staff does not expect you. You may be surprised.
Keep the office off-limits when management is not there.
Do not allow off-duty employees and friends in non-guest areas.
Watch for suspicious activity or people going where they do not belong.
Do not keep large amounts of cash at the location or in the cash register.
Check the surveillance cameras frequently.
WASTE

It can be caused by:
Over-ordering
Preparing too much that you cannot sell
Training of the employees resulting in chicken that cannot be sold.
Improper storage and handling of food products.

Waste will occur, and when it does occur, it needs to be documented.

Waste can be reduce by following this basic rules:
1. Rotate all food in inventory whether refrigerated, frozen, or dry storage. Always put the new inventory behind or under the old inventory.
2. Never over-order. Base your order on sales projections and add a little extra to cover any emergencies that may arise.
3. Keep perishable food refrigerated or frozen. Check the temperature of your refrigerated equipment daily.
4. Minimize spilled food and empty out the containers thoroughly.

Determine Cost
Here is the process to determine COGS.:

 Look for the price from the most current invoice from your distributor for the particular item.

 Then divide the number of portions you can get from that item into the price from the invoice.

 This gives a dollar amount for the portion of the product used to make the item.
By not thinking from a selling cost point of view, it is easy to overlook what the potential income would have been if the asset had been controlled. It is a portion of this difference that determines your profitability

Always think of the selling potential that is lost when you do not control your products!!!
COST & CONTROLS
When speaking of costs and controls, think in terms of DOLLARS!!
Everything used has a dollar cost.
Having the ability to limit that cost through the use of controls directly affects the profitability of your location!!
Fixed Costs
, are those on that we have little control and include rent or mortgage payments, state and local taxes, and the initial investment in Campero.

Variable Costs
, are those that fluctuate in their dollar amounts and can be greatly affected by the procedures and controls placed on them.
It is possible to waste money without
controls
in place!!
Controlling costs ensures that waste is
minimized, theft is minimalized, the asset is being used to its fullest potential, and the most dollars are going to the bottom line of the profit and loss statement.
Included in these variable costs are
food, paper, and cleaning supplies, along with payroll, utilities, administrative costs, advertising costs, etc.
When considering the cost of these products (assets), realize that the full cost is not what was paid for it, but rather what potential income that product would have brought if sold.

EXAMPLE:

If a chicken was made with the actual cost of ingredients being $2.00, but the chicken was never sold because somebody stole it, the loss is not only $2.00, but also the $4.99 it would have sold for.
FOOD COST & CONTROLS
COGS is the dollar amount you paid for a particular food item (a piece of chicken, a bag of fries, a gallon of oil, or a takeout box). All have a dollar cost attached to them

Every food item that is used at your location must have a cost associated with it.

The cost may fluctuate due to market conditions. Ex: Vegetables

To make sure that you are using the most accurate prices in determining your costs, you must update your files by using the most current invoices from the distributors and the prices from them.
Determining COGS Percentages:
Once the total dollar COGS for the menu item has been determined, the COGS percentage can be determined. The COGS percentage is the percentage of the selling price in relation to the cost of the menu item.

For example:

 If the cost of the ingredients is $1.80 and the selling price is $6.99
 Take the $1.80 and divide it by the selling price of $6.99.
 This gives a COGS percentage of 26%

HOW TO CONTROL COSt
Control COGS through the use of several resources. Proper purchasing and receiving procedures ensures that the correct quantity and quality of food products are delivered.
Training the employees ensures that they are using the food products in the proper manner.
Following the portion charts when making menu items gives you a consistent cost per item.
Using the proper forms to track and eliminate waste ensures you the highest return from the available product.
Implementing a weekly inventory system ensures the ability to manage your COGSs.
THEFT
Theft, by both employees and guests, is a common problem and comes in several forms:
stealing food products
office supplies
cleaning solutions
cash
furnishings
Letting the employees know theft will not be tolerated is an excellent start. Being involved in the operation and keeping track of your assets will keep you informed.
CAMPERO MANAGEMENT


Manager

INVENTORY
On Top of All That!!
OPTIMIZING EXPENSES
1. Personnel
Hourly wages represent 14% of net sales
One of the expense accounts where the manager’s skills has most influence on
Tips on how to properly manage this account:
Schedule (Gantt chart)
Use of Menu Link system to control working hours
Control overtime hours
Personnel quantity has to be in accordance with sales volume
CONTROLLING COST
The role of the manager in a Campero restaurant is very important. As the manager, you are responsible for the sales, costs, training, employee retention, guest service and satisfaction, food quality, cleanliness, and sanitation of the restaurant.
Reorder Points
The reorder point is the ideal quantity available of product that guarantees that demand will be covered.
Follow the steps below in order to define the reorder point:
For products that are counted every day:
1. Define daily product consumption.

Formula: product consumption in a month
divided by number of days

Example:
For sales of 30,000 chicken pieces in one month
30,000 / 30 days = 100 pieces a day


2. Determine the period between deliveries of orders.

Example:
If the days when orders are delivered are on Tuesdays and Fridays:
 The order that is delivered on Tuesday must cover demand for three days (Tuesday through Thursday).
 The order that is delivered on Friday must cover demand for four days (from Friday through Monday).
 To calculate the reorder point, the longest period—four days—should be used (Friday to Monday).
3. Define reorder point.
 Multiply the average daily sales by the number of days it takes for delivery, and then add a safety margin of 20 percent.

Overview
Controlling costs and expenses are two of the most important activities that the managers needs to follow into the restaurant.
Take a look at the following analysis:
As you can see, the most important expenses to control in the restaurant are COGS and LABOR.
To Lower Cost/Expense
Spend less money by any means in order to accomplish such reduction.
Effects:
 Image is deteriorated because of poor product quality and poor customer service
 Loss of customers

Optimizing Cost/Expense
Achieve the standards and parameters established for costs in compliance with product and service quality of Campero.
Effects:
 Increase of satisfied customers
 Increase of sales
 Enhanced profitability

COST & EXPENSES
COGS

 Cost of raw material and packaging
 Food cost; represents 32–34% of net sales

Operational Expenses
 Necessary expenses to operate the restaurant even though they are not related with product
 Represents approximately 45% of net sales

Three most important areas to control
Inventory Management
Production Forecast
Inventory Variances
Training

Cost Analysis
There are two types of cost to be considered:
1. Theoretical cost:
Cost based by recipe; for every sale the POS system discounts the items included in the recipe from the inventory. This cost does not include waste or variances.
2. Actual cost:
Cost based by recipe including waste and variance. This is the
REAL COST

of your restaurant operations

2. Services
Important tips for efficient management:
Electricity
Scaled switching-on equipment
Walk-in coolers, freezers, and air conditioning working properly
Water
Bathrooms working properly
Responsible use of running water
Gas
Calibration of gas equipment
Use the necessary equipment

3. Equipment Faclities
Maintenance and repairs
Cleaning program
Care and cleaning of equipment
Precautionary maintenance of equipment
Adequate employment of equipment
Personnel training on the proper use of equipment
4. Others
Cleaning utensils
Creation of a flowchart for cleaning activities

Chemicals
Personnel training on the proper use of chemicals
Dispensers working properly
Work utensils
Personnel care and adequate use of work utensils
Full transcript