Managing the Impact of Restaurant Commodity Price Swings

Jim Balis' Blog

Produce prices are in constant fluctuation. This is no big deal for a restaurant if the shift is small, but can make a massive difference if the price jumps significantly—especially if the commodity is one of your most used items. You can’t control the changing costs of commodities. You can, however, employ some strategies to help manage the impact of those changes. Here are a few techniques to help ameliorate the impact of commodity price swings in the best way possible.

Have a Clear Picture of Which Commodity Items Are Driving Your Highest Costs

In most restaurants, it’s usually about 20% of the commodities that are driving 80% of the costs. When it comes to managing commodity prices, these items are the most critical to focus your cost saving efforts on. Don’t get side-tracked pinching pennies on items that have a negligible impact on your overall costs. Focus on the…

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