How The Food Service Industry Can Reduce Product Loss Costs

When it comes to the food service industry, (i.e. Food and Beverage, Catering, Hospitality… etc) finding different cost saving initiatives is not only important, it’s essential.

For hotel management and food service management alike, there are three distinct categories to be aware of that can have a great affect by helping you reduce overall costs.

Cost Saving Tips

Spoilage – Whatever a case of onions costs, if a quarter is thrown out due to spoilage, the cost is too high. It is like throwing cash directly into the garbage bin. Product should be rotated so that the first in should be the first out. If a partial case of onions is already on the shelf, put the new case of onions behind it so the older onions are used first.

Theft – Unfortunately, theft is a real problem in the food service industry. It is easier to use stolen food than other stolen items. A stolen case of pens may take years to use up but a case of steaks can be used up in a weekend barbecue. With such low margins, the theft of a $100 case of steaks requires $2,000 in sales to make up for the loss. Another form of theft is accepting higher prices from a supplier in exchange for tickets to a ballgame or a couple of free lobsters on a Friday. Set up cameras where high-cost items are stored, like the walk-freezer. You should also keep a close eye on inventory management to compare inventory levels to sales records to identify unexpected levels of usage.

Waste – Waste is gaining more attention from smart food service operators. There are many sources of waste from both the back-of-house and front-of-house. Back-of-house waste comes from poorly handled product. Spills, over-cooked, poor trimming, over production, not using leftovers creatively, not using all usable product (beef fat for stock, celery ends for soup), inaccurate pre-portioning, etc. Front of the house waste can come from poor portion control leading to uneaten product, over-stocking the front of the house, over-brewing, etc. All wasted and spoiled product should be recorded and waste/spoilage reports should be issued. Identifying the problem is the first step to reducing spoilage. Do not rely on anecdotal evidence.

By keeping a keen eye on these three specific categories and implementing cost control methods to make reporting uniform, businesses are able to successfully reduce their overall waste costs. 

  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client