One popular type of restaurant businesses nowadays is inevitably buffet restaurants, since it offers best value to customers. However, this type of business creates a big problem for entrepreneurs by potentially burdening them with high cost. Without effective management, a restaurant opened with profit in mind might suffer losses and have to eventually close down. Because Makro HoReCa Academy understands the significance of this problem, we have cooperated with a hot-pan grill and roast buffet restaurant to provide a case study for buffet restaurateurs in solving problems in 48 hours.
Reji Vethavisuit, owner of the Meat Addict Restaurant, a hot-pan grill and roast buffet restaurant in Chokchai 4. Mr. Reji said that big problems in this business are stock and lack of knowledge about restaurant accounting, incomes and expenses. After basically reviewing the business model of the restaurant, experts from Makro HoReCa Academy thinks that the Meat Addict restaurant still has opportunities for growth but still suffers from lack of effective financial and overall management, and understanding about ingredient stock management can reduce waste. 48-Hour Transformation Countdown Experts from Makro HoReCa Academy met with Mr. Reji, the owner of Meat Addict Restaurant to work together on solving the following four main problems found: "Overstocking making costs skyrocket""Not knowing what the actual cost is""Too few fresh vegetable menu items""No specials menu to boost sales" Mrs. Mathurot Wongpradu, a restaurant business consultant and planner and one of the experts from Makro HoReCa Academy, had recommendations about cost calculation for Mr. Reji, the owner of the Meat Addict Restaurant. She viewed that the restaurant had a clearly defined set of ingredients for sale, so it's easy to calculate ingredient cost. As a result, the restaurant should record its expenses, so the actual cost problems can be discovered. It will also be possible to calculate the ingredients that need to be used so that it won't be necessary to overstock, and skyrocketing cost will be resolved.
"Whatever the problems are, solve the hardest parts first… And once those parts are resolved, you will see immediate increases in profit," Mrs. Mathurot said. Mrs. Mathurot advised Mr. Reji that business owners need to see the big picture first. They should know how much income their businesses should have and what their costs are. And costs are expenses, so business owners should check which part of their stock has high cost and determine the actual stock in terms of cost per month or week.
Formula for calculating actual cost:
The formula is this: (Goods at Start of Period + Purchases during the Period) – Goods at End of Period = Total Used Actual cost is calculated by adding goods at the start of the period or ingredients folded as cost or part of the start of the next period to the purchases during the period. If you count your stock everyday from days 16-30, then your goods at the start of the period are from days 1-15. If you have leftover stock, you fold it as the starting goods of Day 16. Then you add that to ingredients that your purchase and then subtract the goods or ingredients that you have at the end of the period to get your actual ingredient usage per month or period, which makes it possible to calculate your required stock and minimizes skyrocketing cost.
Meanwhile, Chef Wutthichart Muadsri, a director from the Thai Chefs Association, recommended that the restaurant includes vegetable dishes in the buffet line because most dishes are meaty dishes. Additionally, Chef Daniel Althaus, an expert from Makro HoReCa Academy commented that buffets are offered at fixed prices, so it's impossible to boost sales unless special menu items are created and made separate from the buffet price. He said this can be done by creating signs and showing them on tables to attract customers and promote sales. Additionally, rice and snack menu items should be added to the buffet line such as garlic fried rice, French fries and fried eggrolls to give customers more options and allow them to order more. Mr. Reji said that after he joined this project by Makro HoReCa Academy, his stock management improved and he successfully decreased the amount of unnecessary ingredients while also creating new menu items, and customers received the new menu options well. Additionally, he consistently recorded income and expense accounts, so he's more able to calculate profit and close expense gaps, making it possible for him to adjust future sales plans.
