Kitchen Operations & Cash Flow
1. I would challenge you to look at food as dollars. Look at food as cash. Conveying to the staff that the garbage bag, the produce in the ____________, and the food in the garbage bin all have a ____________ associated with it.
2. Managing cost is important because if we're spending too much money on trash bags, that might mean that we can't buy the ____________ that we need.
3. Instilling a sense of ____________ responsibility in the team helps them understand where the money goes. When everyone understands the bigger picture, everyone is now participating and contributing to the ____________.
4. A question I like to ask is, what's the most expensive thing on your menu? Everyone says it's the T-bone steak or the lobster. But the most expensive thing is the thing that goes in the ____________ because you're making ____________ money off of it.
5. Instead of throwing it in the trash, what can you do with it? Can you turn it into compost? How can things that bring you no ____________ become a ____________ stream?
6. When talking about food cost, the basic calculation used to determine how ____________ a business will be is: total ____________ divided by total revenue.
7. The real way to look at food costs is: beginning ____________ plus your purchases minus your ____________ inventory.
8. If you're cutting your steaks and you're going one ounce over, you could be looking at thousands of dollars of loss just by not paying attention to the ____________ ____________.
9. When you're writing a menu, you take the cost of something and divide it by the ____________ you're trying to achieve to figure out your ____________ price.
10. You may be dealing with ____________ and prices changing, but if you know your costs, you can make good business decisions and protect your ____________ ____________.
11. Your labor cost is calculated by taking your labor costs divided by ____________ to get your labor cost ____________.
12. Operating costs in the kitchen may be trash bags, gloves, or chemicals for the ____________ ____________. If you only fill a bag one-third full, your cost is three times more expensive.
☀️Culinary Finance Review
- Food as Cash: Everything in the kitchen, from produce in the walk-in to trash bags, has a direct cost.
- The Bottom Line: Fiscal responsibility helps the whole team contribute to the final profit of the business.
- Waste is Expensive: The most expensive menu item isn't steak; it's whatever goes in the trash bin.
- Inventory Formula: Beginning inventory + Purchases - Closing inventory = Total consumption.
- Portion Control: Going even one ounce over on portion size can lead to thousands of dollars in loss annually.
- Operating Costs: Managing operating expenses like dishwasher detergent and trash bags is vital for profitability.