Bring your costs and the market into “Alignment”
Before any product arrives at your door and on the plate of your guest, it passes through many hands and layers of pricing and profit formulas. The system is complicated — and ripe for pricing errors due largely to the manual processes still used to conduct business. One weak link in the supply chain can result in billing errors between manufacturers, distributors and you. Team Four launched a new program — Alignment4 — to help you identify those errors and correct them quickly so you can proactively manage your food costs. The program starts by analyzing receipts from your distributors, then examining product-level detail by invoice for a set amount of time. We can then plug in items that have been specially priced and compare them to what you were actually charged. The program can not only determine if a billing mistake was made, but it can also help you identify purchasing trends so you have a better sense of market values. If you are having a food-cost problem, Alignment4 can analyze your data and determine (soon at a daily speed) if a pricing mistake was made, if there was a temporary change in the market following a hurricane, or if a simple shift in your product mix might solve the problem. It converts data into actionable steps to lower food costs while helping you maintain standards for food quality and guest satisfaction. Gaining this insight into your data (all while keeping it anonymous) through Alignment4 provides other benefits too: You will get a customized inflation and market report that considers your past purchases and product mix, providing you with meaningful information to help you set menu selections, prices and portion sizes. Team Four can also approach suppliers on your behalf and solicit opportunities for you to consolidate purchases with other operators, whether you have 1000 locations or just one. For more information about how Alignment4 can help your restaurant, contact us at email@example.com.
Restaurant investment designed to maximize shared resources
As investors look to bring the next foodservice concepts to fruition, a new trend is becoming clear: Much like the transportation, retail, media and logistics industries before it, foodservice businesses are now attracting technology investment designed to streamline and bring efficiencies to multiple operations at once. For example, Tech Crunch reports that millions of dollars are now flowing into networks of shared kitchens, storage facilities and pickup counters that are likely to become the next big restaurant brands. These networks can help cut back on overhead and make operators more nimble when it comes to hiring labor and conceiving of new menu concepts. The trend is something existing operators can put into practice too: How might you and your neighboring businesses collaborate or share resources to become more efficient and flexible?
Remind employees to lather up
As the season of colds and flu approaches, remind your staff of the importance of washing hands with soap and warm water for 20 seconds at regular intervals. It’s the best way to remove the kinds of pathogens foodservice workers carry on their hands. Make it regular soap, since antibacterial soap needs additional scrub time to kill bacteria and doesn’t affect viruses and other pathogens, according to Statefoodsafety.com. Antibacterial hand sanitizers are helpful once employees have washed their hands with soap and water, but they are less effective when they come into contact with water, proteins, feces and blood and they will not kill norovirus, which is the top cause of foodborne illness outbreaks.
Shift to a four-week accounting cycle
How often do you conduct accounting reviews of your business? If you work on a monthly basis, you may want to reconsider: Orderly suggests accounting reviews on a four-week cycle, giving you 13 four-week periods to review over the course of a year. Since each cycle is exactly 28 days, you will be able to make more accurate comparisons to other periods in order to calculate your profits and losses.
Get to know Alexa
Could voice-activated ordering have a place in your business? The technology is poised to change the mobile ordering landscape in the near future. The consulting firm Capgemini expects consumers to use voice technology for 18 percent of their total spending within three years — up from 3 percent now. Forbes reports that Dunkin’ Donuts, Starbucks, Denny’s, Wingstop and Fazoli’s are among the brands that now offer voice ordering, with many using Amazon’s Alexa Voice Service, a chatbot or some combination to allow customers to place an order. The tech startup Orderscape, which currently works with brands including Fazoli’s, reports being in discussions with more than 20 other brands looking to build business via voice search. Orderscape’s CEO predicts the technology will soon evolve into a more interactive, frictionless conversation in which the customer can order the full menu — not simply place a reorder or choose from a slimmed-down variety of options.
Mind your budget busters
How well do you adhere to your restaurant budget? Restaurantowner.com says the vast majority of restaurant failures are, at least in part, the result of a budget that is not at the foundation of key business decisions and lacks accountability. Setting — and sticking to — your operation’s budget will help you identify where you need to save and where you can afford to invest. Upserve recently shared several factors that can negatively impact your numbers. For one, poor management of your inventory can lead to between 4 and 10 percent of your inventory being wasted, so move away from paper-and-pencil inventory management and toward technology that allows you to take a holistic view of your business and spot problems before they become costly. Without such a system, it’s easy for you to lose control of portion sizes and present an inconsistent experience to guests, or to miss signs of employee theft —problems that can also hurt your budget. (Remember to update your software regularly to stay in step with changes to your system.) Next, understand how to retain your best people, since the average cost of replacing a front-line employee is nearly $6,000, according to Cornell University’s Center for Hospitality Research. It can help to reward your top performers and engage employees so they feel invested in the business, as can interviewing employees who are leaving.
For some restaurants looking to minimize food waste by using the entire fruit or vegetable, the compost bin is sparking innovation — and chefs are making no attempt to hide it. Restaurant Business reports that Spice Kitchen & Bar in Cleveland offers “compesto,” a changing concoction of carrot tops, parsley stems and other vegetable trimmings that would have landed in the compost bin, and blends it with couscous as the base for a halibut dish. At Graffiti Earth in New York, a soup was promoted online with the hashtag #eatmycompost.
What’s your challenge? Whether you need help developing recipes and concepts, analyzing food costs, fine-tuning purchasing, planning a marketing campaign or managing another aspect of your business, we can provide guidance tailored to your needs. Contact Team Four at firstname.lastname@example.org or 888-891-3103 for more information.
About Food For Thought and Profit
Food For Thought And Profit is brought to you by Team Four Foodservice/Value 4. We offer the latest foodservice trends, news, safety, and technological advances in the industry. We are an outsourced purchasing and logistics company that provides comprehensive supply chain solutions to our customers. Our executive team has many years of foodservice experience and we bring that experience to work for you. We have expertise in all areas of the foodservice sector.