It’s Time to Get Proactive about Profitability

Employing the right digital tools and expertise can simplify margin growth.
It’s Time to Get Proactive about Profitability
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Cost management, ordering and menu profitability continue to challenge the restaurant industry, so it will take a proactive approach to grow margin. We asked Gordon Food Service® Digital Solutions Supervisor Matt Dyksterhouse to highlight some best practices. 

Customers have been proactive about cost management. Let’s look at efficient ordering—isn’t it as simple as using the vendor-provided order guide?

Dyksterhouse: That’s the foundation, for sure. Savvy operators appear to be employing par levels to control inventory values, reduce errors and keep the process simple. They use the term “inventory” but it’s really about par levels.

How are they accomplishing this?

Dyksterhouse: They’re aligning order sheets with how they actually stock items—and they’re building systems that are simple enough for even the newest employee to quickly and accurately take orders. The goal is to keep inventory value down and ensure they get the right product at the right time. Operators no longer have the time or staff to wait for a distributor to deliver a product or to get it from a retail store when an in-house error is made.

What do we see happening with menu profitability?

Dyksterhouse: Operators want to know individual plate cost. They also want to view performance via reports like recipe summaries. First, they’re making these goals a priority. Next, they’re assigning and training team members to execute the actual data entry of the recipes. Finally, they have a specific plan to regularly review reports that give them information critical to developing strategies and action steps to meet goals. Operators typically need operational support from culinary or business experts to help evaluate reports and think through execution. This process can lead to redoing recipes for profitability, developing price thresholds, and making decisions about such factors as menu size and removal of menu items. 

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Contact your Gordon Food Service Sales Representative to learn more about technology solutions and the teams that can support your strategies.

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