Use Menu Costing Software for Maximum Menu Profits
Menu costing software is critical to planning a restaurant menu. If you want to make any money in the restaurant industry, you cannot rely on the numbers you keep in your head. You can’t generally know what things cost. You have to know exactly what everything costs to make sure you charge enough for every item on your menu. That is why you need menu costing software to plan your menu. Watch this video or read below to know what to look for in menu costing software.
If you want to have any chance of making money in the restaurant business, you can’t subscribe to the thinking of, “I generally know what a protein costs, and I generally know what a side costs.” If you’re doing it this way, you’re “generally” not making any money. You must know the cost of every ingredient and you must know it by quantity.
Listen, you can do all of this manually. You can create a binder full of recipe costing cards, and you can update them every time an invoice changes from your distributors. But menu costing software is going to make it easier, automatic and consistent. You’re more likely to actually use recipe costing in your restaurant if you’re using software. It’s just too easy in the software!
So, why is menu costing software – or menu costing in general – so critical? Because in an industry where you make pennies in profits, you have to make sure every penny possible is generated. Recipe costing cards provide consistency in the kitchen, which results in more sales from customers because they know every time they order that dish, it’s going to be consistently good.
Recipe costing cards also help you figure out your menu mix. Some items are going to have a higher cost of goods sold, but others have such a low cost of goods sold, you’ll find your restaurant’s ideal food cost.
Having recipe costing cards allows you to make smart business decisions to ensure your profitability, such as what to charge, whether you need to find less expensive products, if an item needs to change or even drop from the menu, etc. The only way to know the answers to these questions is to know what things cost.
David shows you in this video how the software makes it all work and shows you exactly how much you have to charge for each menu item to make money. When you use menu costing software, you can also figure out what items on your menu can be adjusted for a big impact to your bottom line. You’ll also find the restaurant menu items that are losers and just be eliminated. The numbers don’t lie.
Software helps you engineer your menu to lower your food cost 3-5 points the first time through. Put it at your fingertips and make it easy to make more money in the restaurant industry.
If you’d like to learn more about how to calculate the prime cost formula and accurately monitor it, request a free demo of our restaurant management software, SMART Systems Pro.
For systems you can use to lower food cost in your restaurant, download our free report, 3 Simple Systems to Cut Food Cost 2-3% Overnight. You can also view tips to lower food cost in your restaurant on this YouTube channel playlist.