Food Cost Management
The greatest manageable cost in a restaurant is food inventory.
The LIVELENZ platform helps franchisors, owners, operators, managers and employees understand their business better by showing real-time data and easy-to-read analytics that highlight where they can achieve better results through incremental improvements.
Until now, ordering inventory was a challenge. A restaurant needs ingredients to sell the food, but order too much and it will spoil in the fridge or don’t order enough and your customer has a bad experience or worse, you lose a sale.
With LiveAnalytics, you can now predict not only the sales (by revenue) but also the anticipated product mix. This breakthrough allows restaurant managers and owners to predict what will be sold and order only the ingredients needed for the upcoming week. How does LIVELENZ do it? LiveAnalytics uses previous sales data, recipe data and advanced algorithms to identify trends and predict what will be sold and when.
In addition to predictive inventory technology, EDI (Electronic Data Interchange) integration with food service suppliers, such as Gordons lets restaurants adopt a JIT (Just In Time) inventory model to help manage inventory costs and reduce spoilage. In addition, EDI integration reduces the time to receive inventory and ensures food costs are always accurate.
Using LiveInventory, once the ordering is in place, users are provided a number of recommended actions to ensure they are properly managing inventory. We suggest a daily count of the top five (or ten) most expensive food items (example: cheese) and a full weekly (or monthly) inventory count and reconciliation. This allows owners, operators or managers to compare theoretical versus actual food costs and identify employee theft.
Comparing theoretical versus actual food cost is one of the best ways to identify problems with your food cost. LiveAnalytics can help you easily find the problem areas and show you the most profitable items on your menu. Using LIVELENZ, you will know when food is going to spoil and, using predictive product sales, you can adjust specials, promotions or discount couponing.