Quick Optimization Strategies for Food & Beverage Operations
As food and beverage operations across the US are adapting to the new normal, management is continually looking for ways to optimize their operations. Here are some simple ways to advance your enterprise in the short-term.
Rationalize Products & Simplify Menus
Reduce menu complexity or product redundancy by streamlining like products. Eliminate similar products across type, style, application, or manufacturer brands where the set dilutes purchasing power.
It is smart to rationalize product lists so operators are ordering items that provide the most value to your organization during times of uncertainty. A simplified menu can reduce dependency on many expensive products, reduce instances of waste or spoilage, further optimize labor and may better fit unique conditions.
Ensure streamlined products are standardized and operators execute upon standardization. Information like specs, size, cut, weight, etc. should be provided to operators on standardized
products the whole organization should order.
Harnesses the purchasing power of the organization to ensure cost benefits are maintained for a longer period with less dilution over time.
Focus on Product Selection & Conversion
Review products for necessity and application and make prudent choices on “want” v. “need”. Adapt and convert key product selections as necessary.
Converting to contracted items lowers net costs and ensures continuity of supply. In periods of supply chain uncertainty it is important to change purchasing patterns to include more cost effective and stable items that are more widely available.
Purchase Contracted Products
Utilize your Concierge resources to analyze purchase data and pursue contracted pricing with suppliers to the greatest extent possible.
Contracted pricing is usually the most cost-effective option amongst procurement activities, resulting in savings and cost stability.
Optimize labor costs through product selection and Back of House (BOH) processes.
Drives overall cost savings, increases product yield, reduces labor hours around prep and line production and better ensures product safety, quality and consistency.
Evaluate Current Service Programs
Evaluate all service programs and contact suppliers to discuss suspension or reduction of variable cost services such as Waste Hauling, Armored Car, Uniform/Textile rental and laundering programs, Oil filtration and cleaning services.