How to Successfully Manage Foodservice Operations

The foodservice industry is ever-changing, yet doing more with less has always been a primary focus. Managing foodservice operations entails navigating ongoing financial constraints, difficulties in workforce availability, and unstable supply chains. Now more than ever, there is a pressing need to streamline processes, minimize waste, and ensure cost efficiency.

It requires numerous resources to successfully manage foodservice operations, and technology is among the most essential. Implementing software can lead to substantial cost-saving benefits, like reducing 5 to 10% of your annual food expenses. For many operators, the challenge is not whether to use technology but how to get started.

Inventory Management

As a vital aspect of foodservice operations, inventory management serves as a strategic starting point. The following are four key areas to streamline:

1. Physical Inventory

The simplest way to begin is by conducting a physical inventory regularly (monthly is the most common schedule). You cannot determine your food costs without routinely taking and valuing inventory.

2. Ordering + Receiving

After establishing a regular inventory schedule, the next step is to manage ordering and receiving. This will help you calculate your food costs, as you will have all the necessary components of the formula:

food costs =

(opening inventory + purchases) – ending inventory

sales

Seek software that offers multiple ordering options (e.g., PAR-based or menu-driven), as each can significantly enhance the process.

3. Requisitioning In/Out to Cost Centers + Production

Requisitioning (tracking products to another cost center like floor stocks) and production will complete your foodservice operations management software. These features help monitor costs in different areas and provide consistency in operations. They also improve forecasting, which impacts food costs and inventory turnover.

4. Data Quality

The phrase “garbage in, garbage out” is relevant when managing foodservice operations, and it also applies to data quality. Even if you implement all the best practices mentioned above, your results will be flawed if your data is inaccurate. Proper data maintenance can save you from unnecessary future tasks. Neglecting data won’t solve any problems, so be diligent and make updates as soon as issues arise.

Data Points

Overall, three fundamental data components to effectively manage foodservice operations include:

Items (things you buy and use)

Conduct and value inventory regularly.
Track requisitioned items to different cost centers (e.g., floor stocks).
Use PAR (Periodic Automatic Replacement) level ordering to establish standard quantities for stock.
Implement template ordering/receiving (while not ideal, it is a reasonable starting point).

Recipes (things you make)

Use recipe management solutions to standardize quality and automate scaling.
Print quantified recipes to ensure consistency in production.

Menus (things you offer your customers/patients)

Use forecasting to track what has been served and calculate future needs based on historical data.
Opt for menu-driven ordering and receiving (the best ordering option).
Create production worksheets, item pullsheets, and issuing forms to track what is required and used for production.
Aim for perpetual inventory management (tracking what comes in and goes out).

Take the first step in implementing the right software to manage foodservice operations with accurate information. Remember, “Data is King.” Put systems in place, and your foodservice operation will be on the path to success!