Cost Control

Define, Monitor, and Control Costs
Management's ability to produce profit is directly related to prime cost control - food, beverage and prime labor.

There are a number of techniques, operating systems and management concepts that can be applied to immediately cut costs.

To control cost on a long-term basis there are three fundamental steps to the development and installation of an effective cost control system: Defining target food, beverage and prime labor costs, implementing systems to periodically monitor the costs and control prime costs based on deviation from the established targets.

Defining Costs

First step is to define ideal costs fro food, beverage and prime labor, establishing target. define target food, beverage and labor costs

Implementing Monitoring Systems

To properly monitor costs it is necessary to install food and beverage controls, inventory systems, purchasing controls, revenue controls and labor controls:

Food and Beverage Controls
Labor Controls
Inventory Controls
Purchasing Controls
Revenue Controls
Accounting Controls

Controlling Prime Cost Deviations

When monitoring systems indicate that costs have deviated, procedures are implemented to return the costs to the defined level. Checks and balances ensure proper maintenance of costs.
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