Rising food prices, spending plan cuts and Medicare/Medicaid cuts make it important to regulate food service expenses. In Three Decade of dealing with health care facilities, I have learned that regulating food service expenses has to do with being smart with your budget plan as well as operations so you can regulate costs without cutting quality. Below are some steps you can take to manage food service costs:
- Track Market Trends. Track rate rises so you can make changes as needed. Price of living rises, enhanced competitors for employees, as well as union rises will affect labor expenses. Adjust food acquisitions and change food selections as required based upon price adjustments. The Customer Cost Index (CPI) forecast for 2012 forecasts that food rates will be slightly over historical averages for the previous two decades. Forecasts consist of: All Food Index up 2.5 – 3.5%, Food far From Residence up 2 – 3% and also Food At Home up 3 – 4%. Anticipated rate boosts in various food groups include: – Meats, poultry, seafood prices up 3.5% overall, with beef/veal up 4.5%, pork and chicken up 3-4% and fish/seafood up 4-5%. – Egg costs up 2.5 – 3.5%. – Grain as well as bakeshop costs up 4.5 – 5.5%. – Sugar and also sugary foods prices up 2 – 3%. – Milk rates (milk, cheese, ice cream, butter) up 3.5 – 4.5%. – Fresh produce up 3 – 4% total, with fresh fruit and also refined create up 3 – 4%, as well as fresh vegetables up 3.5 – 4.5%.
- Know Your Numbers. Understand your operation’s spending plan and profit/loss statements. Analyze declarations weekly, regular monthly as well as quarterly. Your food selection drives choices connected to food acquisitions, labor/skill level requires, food cost, manufacturing schedule, equipment requirements, client contentment, nutritional worth, solution demands, as well as most significantly, your bottom line. Check rates on all food selection products to guarantee prices are within the preferred variety, as well as use software systems to take immediate steps to check my blog.
- Control Labor Prices. Track your meals/labor hour: Overall Meals Served/Day ÷ Labor Hours/Day. The ordinary meals/labor hr for hospitals and long-term care facilities is 6-12. Track efficiency and also execute systems to assure effectiveness. Lower absenteeism and hold personnel turn over to a minimum. For a $20,000/ year employee, turnover may cost as high as $10,000 for a turnover rate of 25% (the nationwide standard).
- Prevent Overflow. The number one price leakage in foodservice procedures is over-production! Get rid of as much waste as possible. Food is left and the plan for use leftovers. Control section sizes and also use standard dishes. Train workers on correct portioning and offer the proper measuring tools as well as devices. Conduct a plate waste study to figure out which food selection things need to be altered and which portions could be lowered while keeping client complete satisfaction.