Latest AMP News


Four Focus Areas to Improve Product Cost

Q: I’m interested in improving my margins this year.

I don’t want to overhaul my menu, and I think my prices are where they need to be. Where should I start on the cost side?

A:
The largest cost target on the restaurant P&L is prime cost, which is made up of cost of goods sold and fully loaded labor. Cost of goods sold is primarily made up of food cost and beverage cost. The discipline for running great costs in cost of goods is the same whether it’s food or beverage. It begins with the purchase and ends with the sale. Everywhere in between is ripe for improvement. Regardless of restaurant size, any business can be world class and improve margins by functioning tightly in the following areas:

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Build a winning team to compete

QUESTION: We’ve had a great couple of years, and I’m ready to take my team to the next level. What is the best way to do that?

A:
Building a great team can be a challenge. To begin, realize the team will never exceed the passion and enthusiasm of its leader. Judge yourself harshly. There are many examples of restaurants that struggle and the root cause is a lack of drive, passion and knowledge in its leader. Without continual growth at the top, high performers will become quickly bored and move on to a better team.

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Three ways to stay relevant in the offseason

Q: This is the most difficult time of year for our business. The majority of our sales are seasonal and we are now in the offseason. What was can I maximize our business to keep from building a big hole?

A:
Seasonal businesses face a difficult challenge when times are busy and when times are slow. It’s not unusual for a seasonal business to produce 65 to 75 percent of annual sales during peak season. For many seasonal businesses the non-peak season creates cash flow issues, staffing crises and morale issues. To stay relevant, this is the time for you as the leader to do your best and most difficult work.

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