The goal of any business is to be profitable. This applies just as much to a food service business. In this module, we’ll discuss ways to control costs and maximise profitability through better management of manpower and ingredients.
The Importance of Basic Costing
Why do we need to understand how much things cost in the running of our food service business?
If we don’t control costs, it will eat into our margins. Even if we have a high volume of traffic, that doesn’t necessarily mean we’re profitable.
Understand the Terms
Income – Derived from selling products and services
Cost – All spending used to generate income
Profit – What operators get when income exceeds cost
The goal of any business is to earn a good profit, so keeping costs at a minimum while selling at the right price and providing a good product is what we should aim for as operators.