Scaling UP Illinois Restaurant Operations: Financial Considerations

May 28, 2020

Presented by: Illinois Restaurant Association and the University of Illinois College of Agriculture, Consumer & Environmental Sciences,

Department of Food Science and Human Nutrition (FSHN)

Panelists

Jorden M. Brotherton Clinical Assistant Professor, Hospitality Management, University of Illinois Department of Food Science and Human Nutrition

Gretchen Ernst Customer Support

Manager

Gordon Food Service

Dustin Allen

Executive Chef

Edge by Chef Dustin Allen

Carter Phillips Instructional Chef and Quantity Food Manager, University of Illinois Department of Food Science and Human Nutrition

Gretchen Ernst

Customer Support Manager

Gordon Food Service: Inside the Supply Chain and What it Means

for Operators

Backup of raw product in supply chain

Manufacturers can’t keep up with increased demand

Industry wide disruption

Supply Chain Shifts

Offerings

Rotational vs. Mainstays

Ingredients Pivot proteins

Menus will Require Flexibility

Proprietary items

Large-format meals and DIY meal options

Watson’s Shack & Rail

Classic Events Catering

Reduce waste

Baker Miller

Operators will Need to be Creative

Inside the Supply Chain and What it Means for Operators

Carter Phillips

Instructional Chef & Quantity Foods Manager

Jorden Brotherton

Clinical Assistant Professor – Hospitality Management

University of Illinois at Urbana-Champaign

Hospitality Management Program

University of Illinois at Urbana-Champaign

Hospitality Management Program

What We Are Anticipating

Closed or limited dining rooms

Throttled customer volume

Need for new or improved carryout & delivery

Need for intelligent and effective menus

Developing Intelligent & Effective Menus

An effective menu is both popular and profitable

Can we measure popularity and profitability?

YES!!!

Menu Analysis & Recipe Costing

Menu Analysis

Simple method of evaluating menu item performance

Calculate popularity and profitability of menu offerings

Make decisions to maximize sales based on your calculations.

Menu Analysis

Requires some historical sales data

Past quarter, past six months, past year, etc.

Requires knowing the cost per serving of each item on your menu

Instructional video is available using the link below…

RestaurantMenuAnalysis

Recipe Costing

Relatively simple calculations that are key to setting menu prices and ensuring profitability.

Increases awareness of most costly ingredients.

Good information to know at any time. Critical for operators to

understand in 2020.

Recipe Costing

Many restaurants may already have costing system in place

Recipe management software

Advanced Point of Sale systems

Manager calculations by hand

If not, we would like to share the method we teach at UofI

Recipe Costing As Taught at UofI

Simplistic costing form adaptable to any recipe(s).

Can be completed by hand (printed) or by computer (Excel).

Example Recipe: Buttermilk Pancakes

Category: Breakfast Entree

Serving Size: Three 8” pancakes and a 4oz cup of syrup

Yield: Fifteen 8” pancakes

Ingredients:

o 12.75 oz All-purpose flour

o 1 Tbsp Baking soda

o 1.5 tsp Salt

o 3 each Eggs, large

o 24 fl oz Buttermilk

o 1.5 tsp Vanilla extract

o 20 oz Maple syrup

Directions:

PRODUCTION

o In a mixing bowl, whisk together the flour, baking

soda, salt, eggs, buttermilk, and vanilla extract

until smooth.

Recipe Costing As Taught at UofI

Costing forms and step-by-step instructions for using the costing form can be accessed by visiting the link below.

RestaurantRecipeCosting

Dustin Allen, Executive Chef Edge by Chef Dustin Allen

Edge by Chef Dustin Allen

Creation of carry-out menu

Using products pre-lockdown

Bootstrapping staple products

Staffing

Canceling reservations and parties

Planning ahead for gatherings

Catering Business

How did Covid-19 affect us?

Carry-out carrying over to post-lockdown

Finding Silver-linings Construction

Menu building

Research & Development

Takeaways from COVID-19

Scaling up through sourcing

Post-Covid-19 Menu development Pricing Where do we see it?

Where are we at now? Bringing back guests and staff Paper & Pen reservation

Edge by Chef Dustin Allen

Q&A