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How 20% of F&B Profit Disappears—And How to Get It Back 🚫 In most engagements, the single biggest profit leak is not rent or marketing, it’s portion variance on the line. The pattern: - Costing assumes 100 g beef per burger. - Actual service averages 120 g. - On paper, Food Cost % looks fine but in reality, you’re giving away 20% more product, silently eroding margin on every sale. What this means in numbers (simple illustration) - Beef at $10/kg → $1.00 per 100 g patty. - Serving 120 g → $1.20 cost per unit. - $0.20 extra x 500 burgers/month = $100 lost on one item alone before you factor buns, cheese, fries, or drinks. Multiply across SKUs and months, and the loss compounds quickly. Controls to implement this week: 1. Portion Standards: Finalize grams per item, specify scoops/ladles/weights per station. 2. Prep Yields: Convert every batch to # of portions and grams per portion; label all pans. 3. Line Checks (2x/shift): Verify patty weight, fry portions, and garnish counts; sign-off by the shift lead. 4. Waste & Variance Log: Record trims, overcooks, returns; review weekly against theoretical usage. 5. KPI Cadence: Track Food Cost%, Yield%, Portion Variance% by top 10 items; act on outliers immediately. 6. Training & Accountability: Brief the team on why grams matter; tie compliance to evaluations. Result Within 4–6 weeks, teams stabilize portions, Food Cost% normalizes, and gross margin lifts—often by double digits—without changing suppliers or pricing. If you’d like a one-page Portion & Variance Control SOP (ready to print for your kitchen), message me and I’ll share it. #FNB #RestaurantOperations #FoodCost #MenuEngineering #Hospitality #Lebanon #ScopeAndCo

How to maximize profit margins of a company 1.Design high marginal utility products The rhetoric is to design low cost products which consumers know costs low but still buy as they enjoy these products immensely. For the food and beverage industry: examples are: 1.Banana and chocolate muffin 2.Pandan and Kaya cake 3.Coffee tiramisu 2.Refine the upsized McDonald's meal Instead of upsizing the meal,there can be available options whereby you upsize either the side or the beverage. With all said,a major pitfall I realize for many rapidly expanding companies is in the quest to increase market share or become the market leader, many business owners choose to sacrifice profits for revenue.A business which expands in this way over a long period of time will most likely go bust.

That bottle of Dom Pérignon on your wine list tells me everything about your pricing strategy. Dom at $600? You’re only thinking about COGS. Dom at $375? You understand your ecosystem’s profit opportunities. Most restaurants price Dom at 3× and never think about it again. Price it with perceived value in mind at $375 and it becomes a point of engagement. A table “discovers” a deal and leans in. The margin hit on that sale is tiny compared to the opportunity it creates. Price for momentum, not just for COGS.

Such a frustration of mine! Too often, rigid COGS and “set” margin expectations end up limiting menu opportunity. When everything has to ladder up to the same formula, it squeezes out the chance to bring in things that are new and different. If Aussie Select is priced with the same margins expected of turkey or roast beef, it simply won’t make the menu. But when saavy operators are willing to take a modest margin hit, they can create a space for real innovation and guest engagement. And that’s where longer-term momentum comes from. Pricing shouldn't be just about protecting the spreadsheet.

I can always tell when a business is managed by someone that hasn't spent a lot of time in craft beer when they do this with things like high-end imports or BA Stouts. Take a little time, blend your margins, and focus on COGS in terms of what you see at the end of the month vs. every single unit you sell. A little bit of creativity and some time spent learning both your local market and clientele will let you hit your target. Be more critical and willing to fine-tune your big sellers first and foremost, and then see what you can do with your special/limited/allocated items. Your model should be built to offer as much of your portfolio as you possibly can to every guest that walks in.

To satisfy the fresh food needs, retailers use one supplier for soup, another for grilled chicken products and a third for potato salad, analysts said. East Rutherford, N.J.-based Mama’s aims to expand its offerings in the fresh food space and to increase its 2025 fiscal year revenue of $123.3 million by more than eightfold in the next roughly five years. Before the Crown deal, the company expanded with the acquisition of olive products and prepared salads and meats companies. The deal also solves some equipment challenges.As the company weighed buying an additional meatball stuffer, which speeds up the process of filling the meatball, another option emerged in Crown. The deal adds a third filler to the existing two, which the company hopes will eliminate the need to cart machinery back and forth between the company’s facilities. Because the fresh deli prepared foods space is so fragmented, “the path of least resistance” for growth is to consolidate, even as others in the food space are divorcing, said Eric Des Lauriers, a senior research analyst at investment firm Craig-Hallum. For the analyst, the Crown deal misses on two of the company’s goals. Executives have been aiming to move farther west to cut down on freight costs to certain locations and have talked about moving into new food categories such as sushi, pizza and soup. The tie-up strengthens the existing business before Mama’s expands into those areas, according to Des Lauriers. “It wasn’t on the West Coast, but it’s actually right next door” to where the company now operates, he said. “You didn’t get sushi, but you doubled down on your existing food portfolio and are now able to offer more premium offerings. #foodandbeverage #freshfood #usmarket #usbusiness #supplychainstrategy #businessstrategy #investmentstrategy #supplychainplanning https://lnkd.in/gUJYKDR3

Launching a bakery in today’s competitive food service market requires more than great recipes. It demands a precise understanding of market positioning, operational efficiency, and financial sustainability. Whether your vision is a boutique patisserie, a neighborhood bread shop, or a café-style bakery with dine-in service, a comprehensive business plan can transform a passion for baking into a viable, scalable business. The Bakery Business Plan Template offers a ready-to-use structure for defining your concept, analyzing the market, and securing investment. But to truly make it work for your specific bakery concept, you need to adapt it with targeted insights, relevant data, and a clear brand identity. 📌 https://lnkd.in/dHFVY-Vz #BakeryBusiness #BusinessPlanTemplate #FoodStartup #BakeryOwner #SmallBusinessGrowth #CafeBusiness #EntrepreneurLife #StartupSuccess #Growexa #BakeryStartup #BusinessPlanning #FoodEntrepreneur #LocalBakery #BakeryGoals #StartupTools

Is your bakery's profit margin thinner than a wafer? :cookie: You might be counting every rupee earned, but are you tracking the rupees silently slipping away? Many bakery & restaurant owners work tirelessly only to see profits mysteriously shrink. The culprit? Often, it's not a lack of sales—it's hidden operational leaks. 👉 The best part? Each of these leaks is preventable. Our blog shares simple, actionable solutions you can apply today to protect your margins. 🔗  Read the full blog: Link in comment 👇 Which of these 5 leaks do you think hurts businesses the most? Share your thoughts in the comments 👇 #BakeryOwner #RestaurantManagement #FoodBusiness #ProfitMargin #OperationalEfficiency #EntrepreneurLife #HospitalityIndustry #CostSaving #BusinessTips #SilentMoneyLeaks #stuffer #eFlozITServices

Profit leaks aren’t always obvious; Sometimes they hide in plain sight. 💸 This blog on 5 Silent Money Leaks in bakeries & restaurants is a must-read. 🔗 Check the original post’s comment section for the link 👇 #FoodBusiness #SilentMoneyLeaks #BakeryOwner #BusinessTips #eFlozITServices #Stuffer