Podcast Summary: Restaurant Strategy – "Managing Portions, Theft, and Waste"

Episode Details:

• Title: Managing Portions, Theft, and Waste
• Host: Chip Klose
• Release Date: April 14, 2025

Introduction to Profitability in Restaurants

Chip Klose opens the episode by emphasizing the critical factors that influence restaurant profitability: labor and Cost of Goods Sold (COGS). He distinguishes between theoretical COGS (as per recipe cards) and actual COGS, highlighting discrepancies that often lead to financial losses.

"There are two main expenses... labor and cost of goods sold, cogs." ([00:00])

He identifies three primary areas where restaurants typically lose money: portion control, theft, and waste. The episode delves into each of these areas to provide actionable strategies for restaurant owners to enhance profitability.

1. Portion Control

Understanding and Managing Yield

Chip underscores the importance of understanding yield—the actual usable portion from purchased ingredients after trimming and preparation. He explains how inefficiencies in this area can significantly inflate food costs.

"Yield is crucial because when you spend X number of dollars per pound... you lose pieces there." ([05:30])

Best Practices for Consistent Portioning

To maintain portion consistency, Chip advises restaurants to:

• Pre-portion Ingredients: Preparing portions before service starts ensures consistency and reduces waste.

  "Pre-portion the tuna tartare... they would pre-portion like 30, 40, 50 portions before they even opened for service." ([12:15])

• Use Scales and Marked Scoops: Implementing precise measuring tools helps maintain uniformity, especially during busy service times.

  "Everyone on the line has a scale and the proper scoops. I can't tell you how crucial that's going to be." ([18:45])

Systematizing Portion Control

Chip emphasizes creating systems that work consistently, regardless of how busy the restaurant is. Regular station checks ensure that staff adhere to portioning standards, which not only preserves profitability but also ensures a consistent dining experience for guests.

"Building a system becomes crucial. System that will work on a Tuesday night, will work on a Saturday night." ([22:30])

2. Theft

Types of Theft in Restaurants

Chip categorizes theft into two types:

• Intentional Theft: Deliberate actions such as stealing inventory or misusing resources.

  "Intentional theft is easy... somebody goes back to the walk and takes four steaks." ([28:00])

• Unintentional Theft: Accidental losses due to oversight, such as forgetting to ring in a transaction or over-serving drinks.

  "Unintentional theft happens... like a bartender forgetting to ring in a drink." ([33:10])

Mitigating Theft through Portion Control and Staff Management

Effective portion control serves as a safeguard against both intentional and unintentional theft. Additionally, Chip recommends:

• Bag Checks: Implementing bag checks upon exit to deter intentional theft.

  "Making sure things aren't going out the back door... everyone had to open their bag before they walked out the door." ([35:45])

• Staff Training and Communication: Ensuring that staff are well-trained and understand the importance of accurate order processing to minimize unintentional losses.

  "Making sure you're staffed up... to ensure that everything's being rung in." ([40:20])

Alternative Approaches to Staff Meals

Instead of allowing staff to order from the menu, Chip advocates for family-style meals with a set budget. This approach reduces the opportunity for unintentional theft and maintains the quality of guest offerings.

"I much prefer a family meal situation... it's a much better way than people ordering off the menu." ([42:50])

3. Waste Management

Identifying Sources of Waste

Chip identifies three main sources of waste in restaurants:

1. Server Errors: Mistakes in orders leading to discarded food.
2. Cook Errors: Overcooking or incorrect preparation resulting in waste.
3. Inventory Oversight: Spoilage due to poor inventory management.

"When it comes to waste, there are three main culprits... server errors, cook errors, and simply oversight." ([50:10])

Implementing Waste Logs

To effectively track and reduce waste, Chip suggests maintaining waste logs at strategic locations:

• Walk-In Storage: To monitor spoilage before ingredients are used.
• Line Side of the Pass: To track errors in order processing.
• Server Side of the Pass: To identify mistakes made by serving staff.

"You need a waste log at the walk in, because that's where waste happens... and then one by the walk in." ([52:30])

Regular Inventory Checks

Conducting regular inventory checks, even if not daily, helps in identifying spoilage and over-ordering. This proactive approach allows for timely interventions to push certain menu items and reduce potential waste.

"Taking stock back there in the walk in is crucial... push burgers if you know you have excess inventory." ([58:05])

Waste Reduction in the Bar

The bar area is highlighted as a significant source of waste due to inconsistent pouring and over-opening bottles. Chip recommends:

• Using Jiggers: Ensures accurate measurement for cocktails, maintaining consistency and controlling costs.

  "If you are not using a jigger to pour your mixed drinks... you are pouring out tens of thousands of dollars every single year." ([1:02:15])

• Streamlining Bottle Openings: Coordinating bottle use among bartenders to prevent multiple openings of the same bottle, which leads to faster spoilage and loss.

  "Making sure you're not opening up multiples of the same bottle... ensures better inventory management." ([1:05:40])

Enhancing Guest Experience Through Waste Reduction

By minimizing waste, restaurants not only save money but also ensure a consistent and high-quality experience for guests. Consistency in portion sizes and drink quality directly impacts customer satisfaction and repeat business.

"Not only to make sure we don't lose money, but also to make sure the guest has a consistent experience every time they come." ([1:30:00])

Conclusion and Final Thoughts

Chip Klose wraps up the episode by reiterating the importance of managing portion control, theft, and waste to achieve consistent and predictable profitability in restaurants. He highlights that while these areas can be challenging to systematize due to the myriad moving parts in a restaurant, implementing structured systems and regular checks can lead to significant financial benefits.

"This is really hard to systematize because you've got a lot of moving parts in a kitchen... but you absolutely have to do it." ([1:35:25])

Chip encourages restaurant owners to adopt these practices diligently to not only enhance profitability but also to provide a stable and enjoyable environment for both staff and guests.

Key Takeaways:

• Portion Control: Implement precise measuring tools and pre-portion ingredients to maintain consistency and reduce waste.
• Theft Management: Differentiate between intentional and unintentional theft and apply appropriate safeguards, including staff training and bag checks.
• Waste Reduction: Utilize waste logs, perform regular inventory checks, and manage bar operations meticulously to minimize losses.
• Consistency Equals Profitability: Ensuring consistency in food and beverage offerings enhances guest satisfaction and drives repeat business, ultimately boosting profitability.

Notable Quotes:

• "Portion control is crucial. Number one is understanding yield." ([08:20])
• "Unintentional theft happens... it's nobody's fault just because it's a busy Friday night." ([34:50])
• "Consistency in your restaurant... that's what matters." ([1:10:10])

This episode of Restaurant Strategy provides invaluable insights and practical strategies for independent restaurant owners seeking to optimize their operations and enhance profitability by effectively managing portions, minimizing theft, and reducing waste.