Restaurant and Food Service Loss Prevention

Providing Best Practices to the Food Service Industry

An “Opportunity” to reduce food costs in your restaurant

Posted by LP Innovations

Jul 18, 2011 10:00:00 AM

When we think about food costs, we should think of them from two different areas; Base Food costs and Opportunity Costs. Collectively, they make up our total food costs, which is the key factor in determining the profitability of any food service location. But one of these areas can provide you with the greater “opportunity” to reduce your costs and improve your overall profitability.

Base Food costs are simply the cost of all your inventory food items. It includes the raw materials used to make up your menu and food servings.

Opportunity Costs are all the other costs, and in some cases losses, that should be factored into your food costs to get a more accurate percentage against your total sales. These costs include; Waste (Raw and Prepared), Condiments, Paper Good Usage (straws, cups, lids, etc.), Employee and Comp Meals, Coupons, Discounts and even Theft.

It is within these Opportunity Costs where owners and operators can see larger erosions of profitability, but also have the better opportunity to reduce costs with a good loss prevention program.

Take Advantage of Reducing Opportunity Costs
Our experience in the restaurant and food service industry shows that there are three key steps one can take to improve Opportunity Food Costs.

  1. Proper Policies & Procedures
  2. Employee Awareness
  3. Compliance Checks & Audits

Each one of these areas requires specific program initiatives that can not only help improve overall food costs, but assist owners and operators in running more productive and profitable location. Developing these steps within your environment is not difficult, but requires knowing the proper steps, having the right tools and the right resources to measure results.

The 3 Steps to Improving Food Costs is an eBook, developed to educate and instruct owners, operators and management of food service locations in these key steps toward improving overall costs. You can receive this book at no-cost by clicking on the button below. Learn some of the key steps that have enabled others in the food service industry to reduce their costs and improve their overall profitability and margin.


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LP Innovations provides restaurant solutions for the food service industry. To learn more about our restaurant solutions, visit our restaurant solutions on our website.

Topics: loss prevention development, improving food costs




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