Use Descending Dollar Report to Lower Food Cost

 In 1. David Scott Peters, Food Costs, Inventory, Restaurant Management, SMART Systems

Want to reduce your food cost by 3-5% buying the same products you’re buying today?

I’m going to show you how.

In this video I explain which report to order from your distributor to lower your food cost.

Order a descending dollar report from your vendor to review what you spent the most money on down to the least amount of money. This isn’t necessarily in volume, but in price per item.

Based on these figures, you can try to find like or better products at cheaper prices, which can have a huge impact on your business. For example, you can take something you usually spend $3,000 a month on and get it down to $2,500. I’ve had members cut their spending by 5, 7, even 10 percent.

Don’t beat up your distributor and demand lower prices. (That’s a prime vendor agreement – covered in another video tip!) Instead, take a look at what you’re purchasing.

Go to your broad line distributor, or all of them, and request a descending dollar report, showing you what you spend the most money on to what I spend the least amount of money on.

Your top 10 items that you purchase represent 50% of your purchasing.

To learn more about systems that will reduce your food cost, read our free special report, Breaking Away from the Insanity: How to easily take control of your restaurant and make more money. Download it here

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