4 Ways to improve your profit margin by Culina Salus

Price

Try not to compete on price as you never know how deep the pockets of the competition are, they may have large reserves of capital and be able to sustain losses, sustained from price cuts, you may not be able to afford this. In a price war, nobody wins, apart from the customer who does not care about your costs.
So, focus on explaining the value you are delivering to the customer, cheap is not always the best.
When you compete on price,you cannot provide good customer service or a quality product and you end up creating the feeling that your product is cheap. Not an impression that is desirable in the food industry.

Costs
Cost control should be a regular activity, not done once a year or when the shit hits the fan.
When looking at your costs, can you negotiate better prices with all your suppliers? Can you substitute products? Maybe you can get better prices without compromising on quality.
Do all your staff need to work full time? Maybe part timers will better suit the busy periods of your business?
Look through your bank statements, and make sure that you don't have any direct debits for products and services that you no longer require.
Know exactly how much every product you sell, costs to produce and sell, make sure you have a costing sheet for every recipe. The devil is in the details.

Up sell profitable menu items
Another method for improving your profit margins is to promote the most profitable items that you sell.
Identify the most profitable items and promote them well. Your staff should always ask the customer if they would like to go large, if they order a drink or large fries with their order. McDonald's, employ up-selling all the time, always asking if you want a drink, or a larger meal.
You already have the customer ordering food, ready to spend money with you,why not try to make them spend more?
Keep in mind that the most profitable items are not always the most expensive. The more of these items that are sold, the higher your profit margins will be higher.
Your staff should not just be taking orders and serving food. They should be actively selling your products. Their job is to get customers to spend more than they intended.
Up-selling should be part of your staff training, after all your staff are your biggest cost.

Meal deals

Customers also love to feel like they are getting a great deal. One excellent way to increase your restaurant profit margin is to offer bundled meals. A well-designed meal deal or box meals simplifies ordering for customers in a hurry.
Meal deals and combo's makes ordering easy for customers and drives sales of higher-margin menu items
like drinks and chips.

Advice on new food allergen rules -Allergen information for loose foods.

From 13^th December 2014 the EU food information for consumers regulation (EU FIC) comes into force. These new regulations are backed up by the UK food information regulations 2014(FIR)

What is a “loose” food? - All foods that are not pre packed.

These new regulations affect you if you run a cafe,take away,restaurant,bakery and cater in schools,hospitals ,staff canteens,home caterers and care homes. This also includes foods that you wrap yourself such as sandwiches,cakes,pies and foods from deli's,even food sold on websites and delivered to homes; in short where ever food is prepared for members of the public.

 

Allergic reactions can cause severe illness and in some cases death. As there are no cures for food allergies, those who suffer have to stay away from foods that cause them.

These new rules mean that you have to provide precise allergen information about the food that you make and serve. Oh, you are also legally responsible for the information that you provide. Better get it right! Nearly 2 million people in the UK , suffer from allergic reactions to certain foods, are relying on you.

The new EU law has listed 14 allergens which must be identified in a meal. From December 2014, you must provide details of the allergic ingredients in the food that you sell.

 

Who are these bad boys? The fearsome 14?

1 Celery. Celery stalks,leaves,seeds, celeriac.

Found: Celery salt(obviously!) salads,stock cubes, and some meat products,Celery powder is naturally rich in nitrate ,without nitrite, cured meats like ham and salami will not have their unique taste and appearance.

2 Cereals. containing gluten- Wheat,rye,barley and oats

Found: Flour,batter,baking powder,bread,cakes,couscous,pasta,pastry,sauces,soups, foods dusted with flour.

3 Crustaceans. Crabs,lobster,prawns and scampi.

Found: in shrimp paste, rice dishes,soups.

4 Eggs. Found: Cakes,mayonnaise,pasta,quiche,sauces, some meat products,meringues,pancakes,egg glaze on pastry,bread & butter pudding – this list is not exhaustive.

5 Fish. Found: Fish sauces, relishes,fish fingers,stock cubes,paella, worcestershire sauce.

6 Lupin: Garden flower which produces seeds, which can be crushed in flour.

Found: Baked goods such as pastries, pies, pancakes and in pasta. Not commonly used in the UK.

7 Milk: Butter,cheese,cream,yogurt and milk powders.

Found: Soups,sauces,foods glazed with milk

8 Molluscs: Mussels,land snails,squid and whelks.

Found: Oyster stews,fish stew,paella.

9 Mustard: Liquid mustard,powder and seeds.

Found: Breads,curries,marinades,soups,relishes,salad dressings

10 Nuts: Almonds,hazelnuts,walnuts,cashew nuts,pecan nuts, brazil nuts,pistachio nuts, macadamia nuts.

Found: Breads,cakes,biscuits,crackers,ice cream,cakes,marzipan,nut oils,sauces curries and stir fries.

11 Peanuts. Found: Biscuits,cakes,curries,sauces like satay, desserts,oils and flour.

12 Sesame seeds. Found: Bread, burger buns,houmous,tahini and sesame oil.

13 Soya: Beancurd, edamame beans,flour,tofu Found: Soya milk, ice cream,meat products,sauces and vegetarian products.

14 Sulphur dioxide: This a Sulfite which prevent foods from becoming discoloured,and has antimicrobial properties to discourage the growth of bacteria. Additionally, they can soften dough or bleach foods.

Found:Dried fruits soft drinks and alcoholic beverages such as wine and cider.

Consequences

Ignorantia juris non excusat or "ignorance of the law excuses no one"

Now you know about the 14. You cannot say you don't know what allergens are in the food you serve. You also cannot say that your food could contain an allergen.

No! you have to get your stuff together ,be precise and tell your customers which allergens are in your food.

Recording Information

On the daily record sheet in the up coming Kitchen Safety Record 2015 Yearbook (published october 2014), please list type of allergen used in a particular dish.

Always read the label of all ingredients used.

Make sure your do not deviate from the standard recipe.

Keep a copy of all ingredient information on labels.

All containers must have up to date ingredient information labels.

Check your deliveries,to make sure that you are getting what you asked for. Also check that your chosen brand has not been swapped for another.

Providing information to your customers.

Make sure that all your staff are trained,and fully informed, so that when a customers asks what is in the food? they must be able to provide the information by telling the customer or giving them an up to date recipe or ingredients card.(handy if your staff have communication issues)

The information can also be on the menu,chalkboard or your website. Takeaways will need to put that information on the flyers,they drop through people's letterboxes.

Finally

1 If someone asks you, what ingredients are in a dish? DO NOT GUESS OR LIE. Always check.

2 Make your your recipes cards , ingredient sheets, allergen control sheets are up to date and easy to access by staff and members of the public.

3 If you change menu,recipes or ingredients,you need to update all the relevant sheets.

4 As always be careful of cross contamination via chopping boards, utensils and thoroughly clean work surfaces and equipment, and wash hands before making food for someone with an allergy.

If in doubt; ASK THE CUSTOMER, they also have a responsibility to ask for information and relay their dietary needs to the person providing the food.