There are thousands of ways to lose money on your pub’s food & beverages. Implement these controls to see your profits grow!
SHRINKAGE, PRODUCT PERFORMANCE AND PROFITABILITY
With the multitude of different ways for a pub to lose money being extreme, it is so important to know what you are losing, how you are losing it and how you can stop the losses occurring.
Timing is just as important – if you can’t act quickly to stop the losses, they can pile up and do serious damage to a business. To prevent lost profits, there are a number of KPIs a publican should have frequent access to. Shrinkage, which is the total revenue loss attributed to wastage, breakages and theft. Yield, a percentage statistic, which tells you how much potential revenue you have achieved from stock and conversely what has been lost. Sales Performance, ranks the performance of every menu item you sell and gross profit (GP%) – your revenue minus the cost of goods sold.
Recent analysis of 90 publicans who were all, to some extent using the aforementioned KPIs, showed that those who were putting the data to good use operationally, increased their gross profits by an average of 3.2%. That’s an increase of around three thousand pounds over the course of six months, which can be extrapolated to an annual value of circa six to eight thousand pounds of extra profit per year. Investing in tracking and analysis of these KPIs is certainly worthwhile.
One way of receiving these regular business KPIs is to enlist the monthly services of a professional stocktaking firm. As the UK’s leading supplier of stocktaking, loss prevention and stock control services, we can help you implement a solution that’s right for your pub; helping you track shrinkage, yield, sales mix performance and boost profitability.
DATA HOLDS THE KEY TO PERFORMANCE
A FOCUS ON FOOD
When analysing your stock control KPIs, understanding your food services’ profitability is just as important as your beverage performance.
These days a good food offer has become a key part of most pub businesses, offering significant extra revenue opportunities. Even the smallest of pubs endeavour to provide some sort of dining experience and much like with beverages, tracking and controlling food stock can present similar benefits, including higher profits.
But food service has more variables making it difficult to control, and counting ingredients by each is at its best time consuming and at its worst simply nonviable. Here are some measures you should have in place that help maintain control over your food stock and kitchen:
- Regular high value counts on all proteins and other expensive ingredients. This is a worthwhile time vs benefit arrangement.
- Surprise item counts to catch out staff who help themselves to a premium meal on your wallet.
- Understand your wastage levels per ingredient to encourage more accurate menu costings, thus ensuring you achieve your targeted GP%.
- Track dates and gain a deeper understanding of your sales, as this can help u rotate your stock, decreasing wastage
We will not only help you implement a level of food stocktaking that is best suited to your operation. Our consultants also analyse your food margins, provide benchmarking, menu costings, guide you in response to fluctuating ingredient/ supplier costs and help you set your prices at profitable levels.