Hospitality cost control is the day-to-day management of what you spend and what you sell, so the margin you planned is the margin you keep.
The main cost areas
- Purchasing: what you pay each vendor for each product
- Invoices: whether every invoice is coded, approved and matches what was ordered
- Inventory: what is on hand and what has been used
- Recipes: what each plate, drink or banquet costs to make
- Bill pay: paying vendors on time from the same place the invoice was approved
- Reporting: whether spending and food cost are moving in the right direction
Why these areas work better together
When they are separate, a price change on one invoice may never reach your recipe costs, and a count may never reach your reports. When they are connected, one invoice can update your prices, your inventory and your books at the same time.
Where to start
- Start with purchasing. Compare vendor prices so you know what you should be paying.
- Put invoices in one place. Capture every invoice, code it, and route it for approval.
- Count inventory on a schedule. Regular counts show where food cost is drifting.
- Cost your recipes. Update recipe costs as ingredient prices change.
- Review a weekly report. Look at spending and food cost every week, not only at month end.
You don't need to do everything at once. Many operators start with one area and add the rest over time.
Learn how NxtEdge connects these areas at nxtedge.net, or call 561-713-2666 to talk to our team.