What are your food costs??

[rat]

All of a sudden I find myself under the gun with food cost. Both the Exec. Chef and myself are suddenly under fire from the GM about it (I think he read a book about it somewhere). We usually operate at 32ish% Lately we have been slow so the food cost has gone up due to minimum orders and things like that -38-39%. More than likely our GM is under fire from the owner and is a master of deflecting blame so our food cost is now the redhead stepchild so to speak.

As for me I work in a upscale $$$$ establishment where we make 95+% of everything in house, including things like ice cream/sorbet, our own bacon/cured meats, bread/pastries, we butcher all out own meat and make the pasta. It keeps us busy. We do as much as we can to keep the FC down, I argue with the GM that you need quality ingredients to make quality food, and as we all know quality=money. We are price minded so we shop for the best deals but it still adds up, we usually spend about 10000-14000 dollars a week for food and 700-1200 a week for my pastry stuff. I do not know our sales figures as I was told they are none of my business so I cannot give you an exact % my numbers are what the GM tells us.

So what I am getting at is what kind of FC is realistic in your opinion for the kitchen and pastry shop in the type of restaurant I am in, and for that matter what kind of FC do you maintain and what type of place do you work, example 40% FC high end country club. I have met pastry chefs who operate their shops at a loss as an amenity to the hotel they are in and pastry chefs who are anywhere from 25% to 45%. What is in your opinions is an acceptable range.

Any help is appreciated. I know this is a dumb and basic question I should remember from culinary school 20 years ago but usually when the boss starts talking FC and labor costs your time is short.

[even stephen]

To me I would have expected your problem to be labor cost,
not food cost. But, 1200 a month for pastry supplies is pretty
high. Looking at your cost of goods and current food cost%,
you are probably doing about 15000 in sales a month. When
your spending that kind of money on food every month, you shouldn't
have a problem with minimum orders. When your making everything
from scratch, you should have less problems with food cost. Perhaps
it may be your choice of products. Don't let the wieght of it weigh you
down. If your Chef can't understand it, then, you need to seek outside
help. Its pretty simple. Of course an obvious problem might be how
you price things. If you have no flexibility in pricing then you have to
be flexible and seek out more cost effective items and adjust portion size.
I am sure you will hear some great advice in the next couple of days in
response to this post. Don't forget theft, it happens. Don't forget the
owner and manager, if sales don't post, then you, my friend, are getting
it in the $%^*&&! Many possibilities. Stay loyal, but, above all do the right
thing. That means finding out the problem and offering solutions. Making
it happen.

[chefpeon]

I was also going to mention what "even stephen" said about labor cost vs. food cost.....one would think that since you do so much from the ground up, like butcher your own meat, that you would get a good price on the meat itself since it comes to you unprepared.

Food costs have gone up in general though because of the price of fuel...our suppliers have now tacked on fuel surcharges and delivery fees; even when we do make minimum orders. Beef has skyrocketed over the past couple of years and I never seem to get a great buy on all my dairy either...especially butter and heavy cream. All the bad weather across the nation is affecting produce prices too.

I would say that if you want to cut food costs, you're already doing that by shopping for the best deals like you say you are....perhaps you (actually they) need to consider saving on labor by buying in some stuff that is prepared instead of having you all make it, like bacon, pasta, bread......I think you can find reliable artisan suppliers for those things and you can save money on labor with no noticeable lack in quality from the customer's point of view.

I cannot understand why they would tell you that sales figures are "none of your business". Of course they are! Our boss tells us sales figures so we know where we're at. We have profit sharing, so it's in our interest to know whether sales are up or down. If you don't get to know sales figures, but they are in your face with food cost, then I'd be kinda suspicious.

[panini]

Rat,
Don't waist another minute floundering under the gun. There is no gun unless you have numbers. If they are withheld from you, then it is your responsibility not only for profitability but also for your crew to figure out some sort of numbers. Withholding numbers is a common pratice in this industry. It is not that difficult to figure or ballpark your income. Every item has a retail price somewhere. Get yourself one of those 29.00 hand held recorders and just record everything going out of your outlet. Like, Tuesday 35 pcs of this dessert, 27 of that, 7 doz rolls, etc.At the end of a week, put some numbers to it. You may be schocked. That's why I mention your crew, heck, I always found the hot side to be running a higher labor then the pastry side. I always had the ammunition to get more labor dollars in when I had the numbers.
I have been out on my own for a decade or so but your numbers seem pretty high to me. I was always in the low 20's on food cost depending on the size of my outlet and the quality of product. I'm running low teens now.
Rat, you're embarking on a very common voyage in this industry. Even Stephen gives the best advice. Level head. Stay Loyal. Don't put your business in the street. If you're gathering numbers and such, just do it on your own.Get your responsibilities organized. Your numbers do not have to be exact. You should always try to seperate yourself from the hot side.
If I had an outlet spending 3-5G a month, I might be looking to see at least 15,000 - 25,000 minimum monthly retail income.
PM anytime if you need any kind of help, you do have to keep in mind all the little things coming out of your outlet or things your outlet pays for.
This too shall pass
pan

[even stephen]

Rat,
I think I have a pretty good bead on what type of place your at.
27% to 33% would be about the industry norm for a successful
high end restaurant doing between 1.25 to 2 million a year in total
sales. Express interest in running reports. If you need a side door
into the pos system or whatever system you have, tell them you would
like to enter your cost of goods under each item in the system. You
should have that there anyway, always before not after a menu change
or new menu. That will probably get you enough flexibility to run reports
as well. Not quite on the up and up, but whatever gets you in. You will
just need a user number or name and a password. The best possible way
through this is to come to terms with the owner. Simply ask him what he
needs, What he wants. If he wants you and the chef gone, nothing good
will come of it. Better to leave on good terms than to be pushed out. Sounds like your Chef is not to sure of himself right now. Stroke him a
little, we all need it sometimes. If you want to continue to work for and with him, be loyal, go where he goes. Loyalty has become extremely underrated
as of late in this industry. Buses run over people everyday, you can help
but think people are being thrown under them. Take it Light.

s

[rat]

We are at about 1.5-2 million a year in sales with an attitional 980,000 in catering parties. Lately the chef has been heavy handedwith his FC on me, I just found out an example of this would be pastry using all the milk as the kitchen doesn't. I started keeping track of my usage for the last 4 weeks and it is about 20% on average of what chef is assigning to my cost. He found out what I was doing so now he does the FC when I am not there and hides the invoices in the office.
I don't view the chef in an adversarial role he is covering his *** as well as we are both in the same boat ut unfortunately it is coming down to that.
My labor is up there as well even after cutting the staff I have down to 32 hours a week though I am still working an easy 50 hours. They haven't started squawking about that one yet as we have 8 cooks on the hot line
and 4 in appetizers and garde mange.

[rat]

We are at about 2-3 million a year in sales with an attitional 980,000 in catering parties. I figure we account for about 10% of sales not including all the freebies we do like bread and free petit fours for the guests. Lately the chef has been a little heavy handedwith his FC on me, I just found out an example of this would be pastry using all the milk as the kitchen doesn't though they make their own cheese for specials (I guess that is made of air not milk). I started keeping track of my usage for the last 4 weeks and it is about 20% on average less what chef is assigning to my cost. He found out what I was doing so now he does the FC when I am not there and locks the invoices in the office. It is hard for me to track the sales I will try to start getting the reports too see the counts and actual sales numbers, thanks for the tip Steven.
My labor is up there as well even after cutting the staff I have down to 32 hours a week because we are slow, though I am still working an easy 50 hours. They haven't started squawking about that one yet as we have 8 cooks on the hot line and 4 in appetizers and garde manger even on slower days. I have 3 apprentices and a helper and they make the least pay in the kitchen so there would have to be other cuts made before my crew would get wacked.
We are a seasonal place, very busy in the summer very slow in the winter, so now we are hurting. We need to promote the restaurant to fill it up or see why people aren't coming, it is a really nice place and I don't see why we are not busier. Pastry can handle everything the restaurant can throw at us and my crew are solid hard workers and loyal. The owner is not really there and has recently appointed a board of directors to oversee our facilities not just the restaurant, also the park we are in as well as the grounds and his other businesses. I am lucky as the owner loves me as is always happy to see me and really likes his desserts. I love working for him as well as the chef who never fails to teach you something new. I feel secure in my job and have been there 7 years now but now all of a sudden this cost issue has arisen so to me that is an ill omen and as you all know the pastry chef is the first one to get turfed.

Which brings me back to the point of what food costs do YOU run, and what kind of place do you work. I am looking for comparisons, sorry for the rant I get carried away sometimes. Thanks for knowledgeable advice.

[even stephen]

I don't think you should have a separate foodcost for just
pastry shop as you are now. Its find to know the cost of
goods, but, I would think it should be combined. From what you
described, I think the chef is trying to throw you under the bus.
If it means his job, and the pastry shop is truly the reason for
the loss, then good for him. I would, however, suggest you
speak with the owner, create a venue for retail desserts and breads,
and create a completely separate department, operating as a
completely different revenue center. Grow, in few words, is what
I mean. Make a pitch. 2 or 3 million in total sales is pretty good,
but, it sounds like a park is involved, and if its open to the public,
and your good, then you can finesse yourself into something
great. Wouldn't it be great to be the primary source of revenue,
not the Restaruant. I recently was dropped into a poorly run operation
and probably chopped 300K right off the bat by eliminating 30% of the
staff, which was fluff anyway, and eliminated all overtime. Purchasing
was irresponsible at best, to many vendors, always overordering to
make minimums. Just plain poor judgement. You are the man, You
can make it happen, Take care of business, Go see the owner, Sell yourself.
Nothing ventured, nothing gained. You don't have to criticize anyone,
just state the obviouse, that you can generate more $$$$.

[oldschool1982]

Rat,

There's been some very valuable insight shared by pan, evenstephen and chefpeon. Not much to add but if folks are that secretive about the numbers the first red flare that goes off in my mind is of the illegal/unethical nature.

I have been through this a half a dozen times where your "fed to the lions" or "fed a line". Not being able to know the sales figures is ludicrious. Heck many of the places I worked, "what were your sales last night and week to date" were the first two questions asked of you by the GM and anyone above him that enetered the building. How can you effective ly manage a cost center if you don't have all the necessary information?

The one thing I would add is just keep an eye on your back! Make sure you keep an eye forward to since some of this may just blow over. It may be the Exec that is under the gun and he's passing the buck. Along the lines of what stephen said you have to control your area. Shine without tarnishing someone else and focus on your "circle of influence".