What Is FOODCO?

FOODCO6 is a comprehensive, dynamic food service cost accounting software package designed to isolate losses due to theft, shrinkage, over-portioning, purchasing without specification, poor yields, over-production, and a host of other process issues that affect the bottom line.

Our goal is to give your management team the information they need to make informed decisions on a timely basis that will substantially decrease your foodservice cost while increasing your profitability. "This is a profit making organization. That's the way you planned it. That's the way it is."

Foodservice is a manufacturing business. But, raw products are turned into finished products quicker in foodservice than in any other industry.

By developing a systemic approach to the process of inventory, procurement, receiving, recipe development, preparation, and assembly, and analyzing data from menu sales, one finds there are three cost principles of doing business for any foodservice operation. From fast food to fine dining to catering to institutional foodservice, understanding the cause, effect, and interaction of each of these three food cost principles will play a key role in the success or failure of your operation.

1. Targeted Food Cost: This is the food cost goal of your operation. This ideal food cost helps you plan your profit. It is the food cost you must run in order to make a profit. If your operation returns an 8% profit running a 32% food cost then you will likely be losing money if food cost climbs near 40%. Food cost can't just be allowed to happen. It must be targeted or planned.

Looking at %% Percentage, you might say:

* “I'm targeting (budgeting) a center of plate cost of 16%.”
* “My targeted cost for the NY Strip dinner is 34%.”

Looking at $$$ Dollars, you might say

* “My food cost budget for the year is $375,000.”
* “My targeted cost per person for the banquet is $2.10.”

2. Theoretical Food Cost: This is the “perfect” food cost. It is based on the principle of buying the correct product at the right price; receiving what is paid for; preparing, producing, and serving only what the guest is entitled to receive: all the while maintaining adequate security measures. It does not include dollars that are lost due to waste, improper receiving, product substitutions, waste, theft, spoilage, improper yield, over-portioning, and the host of lost profit pitfalls in the food service industry.

Looking at %% Percentage, you might say

* “Based on sales, my center-of-plate costs are 15.9%.”
* “At today's beef price, the NY Strip dinner food cost is 36.2%.”

Looking at $$$ Dollars, you might say

* “My ‘perfect-theoretical’ center of plate costs are $3,696.00 this week”
* “A perfect to-specification event is $1.98 per person today.”

3. Actual Food Cost: This is the bottom-line food cost figure that appears on your profit and loss statement. It is calculated by (beginning inventory + purchases) - (ending inventory). Read it and rejoice, or read it and weep.

Looking at %% Percentage, you might say
* “My actual center-of-plate costs are 17.9%, which is a 2% shrinkage on purchases of $15,000.00 this week. If I don't solve this problem it will cost me $15,600.00 this year.”

Looking at $$$ Dollars, you might say
* “The event (school lunch, catered event, or banquet) cost was off by only a nickel per plate.” (But this adds to over $10,000 per year in budget deficits or lost profits when serving a mere 500 people per day.)

How many will you feed today? What will lunch really cost you today?
Shrinkage is an enemy of profit. Shrinkage is the difference between theoretical, or perfect food cost, and the actual, or real food cost. The difference between theoretical and actual in food service ranges from 2% to 15%. That is 2-15% of sales in lost profits, and often the difference between a profitable food service operation and one that has closed it's doors.

Every food service operation has shrinkage. With FOODCO6, this number is a management controllable number. FOODCO6 is designed to give management timely reports on every item in inventory, and subsequent tools to recover lost profits. Once implemented, FOODCO6 software is akin to turning on your headlights at midnight.

Everything is so much clearer. Control of food cost is based upon planning.

FOODCO6 software will help you establish the following profit protections:

Planning your menu
Establishing portions and serving procedures
Establishing purchase specifications and/or branding
Determining you targeted ideal food cost percentages
Planning and establishing receiving procedures
Training your employees to obtain your goals
Maintaining proper security measures to accomplish your goals
Controlling your actual food cost within 1/2% of your theoretical food cost

Read more by viewing on line or downloading "Planning Your Profit"

Food Service Solutions, Inc.
1227 Eleventh Avenue
Altoona, PA 16601
Phone: 814-949-2037
FAX: (814) 941-7572

Sales, Customer Service
Toll Free Phone: 800-425-1425
Email: Sales@foodserve.com

Marketing and Promotion
Email: Marketing@foodserve.com