How to increase Cafe Profits - Menu Costings

How to increase Cafe Profits – Menu Costings

One of the biggest factors when working out the potential sale price of your café will be the profitability.

 

Whatever stage you are at whether you are on the market now or just wanting to make plans to sell further down the track then this is a good exercise to go through.

 

Periodically costing out your individual menu items and dishes puts your mind at rest that each item that you are selling is priced right and making the correct margin.

 

The process of going through your supplier invoices will also force you to check what you are paying for key ingredients and may help you pick up on price rises that you had not been aware of.

 

Costing out each item is also a good way to check current portion sizes and make sure that staff are all aware of correct amount of each ingredient that they should be using for each dish.

 

Being aware of you highest margin lines will also help you when it comes to knowing what you can offer as a promotion or special and which dishes you and your staff should be pushing the hardest.

 

This video shows how a simple spreadsheet like this can make the process quick and painless, it will also give you a reference to check back against when you make any changes to ingredients, suppliers or prices.

 

Don’t feel you need to cost out all of your dishes at once, just pace yourself and start with the highest selling lines.

 

If you have never done this or not done it for some time then I guarantee its going to be an eye opener!

 

I hope this helps, feel free to comment below or get in touch if you need any help.

 

Suggested Reading - Rework

Suggested Reading – Rework

 

 

This weekend I managed to get some quiet time just to sit and read which was a much needed treat.

I have a stack of books lined up that I have ordered recently but just don’t seem to have had time to get through them. Of the 5-6 books I have in the queue I chose to read Rework by Jason Fried and David Heinemeier this weekend.

These guys are from the company 37 Signals which behind software such as Basecamp, Campfire and Highrise to name a few.

This is a really easy read that is well put together and challenges the way that you think about business. As with all books, courses, seminars etc I always think  that if you can take a away one or two things then its been time well spent.

I have taken several ideas from this book which for the couple of hours invested in reading it, highly recommended.

Rework by Jason Fried