restaurants and bars fail is that owners and operators fail to implement a food and beverage control system. Without one, they have no way of knowing if anything is missing or if costs do not measure up to standard. A control system is a necessary and beneficial tool in maximizing profit and keeping waste and pilferage to a minimum.

Profit Planning

One of the most critical aspects of food and beverage control is profit planning. In the final analysis, the profit generated must be sufficient to keep the business running and the owner pleased with the investment.

Three ratios are extremely important in profit planning:

Operating Ratio = Net Income Before Taxes / Net Sales: This ratio is commonly known as net profit to net sales. The higher this ratio is, the better. For example, in full service operations with an average check of less than ten dollars, the median...
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