Cost Management

Managing costs efficiently is one of the biggest challenges facing companies in the mass catering sector.

With benefit margins that are often reduced, it is essential to adopt intelligent strategies combining technology, planning and monitoring of performance indicators to optimize resources and guarantee sustainable results.

In this article you will find practical ideas and essential tools to improve your cost management, to reduce waste and improve the competitiveness of your business.

Read on to find out how to turn challenges into opportunities when managing your operation.

What is cost management in collective meals?

Cost management in collective meals involves monitor and control spending related to the production and operation of services in industrial kitchens, corporate restaurants and food and nutrition units (UANs).

When costs are managed efficiently, it is possible to increase the profit margin, avoid waste and maintain the quality of the food served, meeting both nutritional requirements and customer expectations.

How can technology optimize cost management?

Technology plays a key role when it comes to optimizing cost management in collective meals. Therefore, solutions such as Tecfood are essential to facilitate the control of inputs, menus and operating processes in food units.

Using the software, it is possible to predict the need to replenish inputs, avoiding both shortages and excesses, which helps to reduce food waste and improve operational efficiency.

Types of costs for a catering company

The costs of collective food services can be classified into different categories.

Understanding these classifications is essential for effective management. See the main types of costs:

• Fixed costsExpenses that remain constant, regardless of the volume of food served. Examples: rent, administrative costs and equipment maintenance.
• Variable costsExpenses that vary depending on the volume of food produced. Examples: purchase of ingredients and packaging for transportation.
• Direct costs: Costs directly related to the production of food. Examples: ingredients used in specific recipes.
• Indirect costsCosts that are not directly linked to production, but which are necessary for the operation of the unit. Examples: electricity, cleaning services and general maintenance.

What are the benefits of cost management?

Implementing effective cost management in collective food services offers several benefits that have a positive impact on operations and financial results. Among them:

• Greater financial control: Knowing exactly where resources are being applied makes it possible to make more strategic and assertive decisions.
• Waste reduction: By monitoring inputs and processes, it is possible to avoid unnecessary costs and increase operational efficiency.
• Higher profitabilityCost optimization directly improves the profit margin, allowing for greater stability and growth.
• Predictability and planning: With a clear view of fixed and variable costs, it is possible to better plan the unit's financial future.
• Improved decision-making: Accurate data allows more informed decisions to be made, optimizing operational efficiency and service.

Practical strategies to reduce operating costs

To achieve efficient cost management, consider implementing the following strategies in the context of collective meals:

• Automate operational processes: use software such as TecFood to reduce manual work and minimize errors.
• Plan menus strategically: collect seasonal supplies and optimize food production according to demand.
• Monitor KPIs regularly: use performance indicators to adjust the budget and avoid deviations.
• Integrate sectorsensure effective communication between the purchasing, production and distribution areas.
• Train your team: train employees to maximize efficiency and reduce daily failures.
• Negotiate with suppliers: seek long-term alliances to obtain better commercial conditions, guarantee the quality of products and services and make the supplier management.
• Reduce waste: implement strict stock control and portioning practices to minimize losses.

Common mistakes in cost management in collective meals

Even with the best intentions, catering companies often make mistakes that compromise effective cost management. So take a look at the most common ones:

• Lack of regular monitoring: Failure to monitor financial indicators frequently can lead to ill-founded decisions, negatively affecting assumptions and operations.
• Exclusive focus on cutting costs: Reducing costs without strategic planning can compromise food quality and operational efficiency.
• Lack of integration between sectorsWhen areas such as purchasing, stock and production are not aligned, the risk of errors and inefficiencies increases.
• Underestimating automation: Maintaining manual processes instead of using specialized software can result in a higher incidence of errors and waste.
• Negotiating with suppliers: Not seeking better commercial conditions increases costs unnecessarily, reducing competitiveness.

Therefore, avoiding these mistakes is fundamental to ensuring more effective and sustainable cost management in collective meals.

What are the KPIs?

KPI stands for Key Performance Indicator, or Key Performance Indicator in Spanish. Therefore, these indicators are metrics used to measure the progress and performance of processes or operations in relation to previously set targets.

In the context of collective meals, KPIs help to control the efficiency of the operation, such as the cost per meal, the wastage rate or customer satisfaction.

Based on KPIs, managers can identify points for improvement, adjust strategies and make informed decisions, ensuring a balance between quality, efficiency and cost control.

Why use KPIs in collective meals?

KPIs allow managers of food and nutrition units (FNUs) to identify operational problems, evaluate performance in real time and make more informed decisions to improve efficiency, reduce costs and increase customer satisfaction.

Examples of KPIs in collective meals

1. Cost of food produced: Measures the average cost of preparing each meal, taking into account inputs, labor and other factors. Helps identify cost reduction opportunities.
2. Remainder indexIndicates the percentage of prepared food that has not been consumed, allowing adjustments to be made to avoid wastage.
3. Input costs per monthMonitors how much is spent on buying ingredients and compares it with the planned budget.
4. Number of meals served: Measures the volume of food delivered over a period, helping to assess operational capacity.
5. Customer satisfaction index: Evaluates consumer perception of food quality, punctuality and service.
6. Average production timeMonitors how long it takes to prepare and serve food, optimizing processes.
7. Return on stock: Measures stock rotation, identifying items with excess or risk of expiry.
8. Input waste rate: Indicates the amount of inputs discarded during the production process.

Process integration in collective meals: eliminate manual errors

The integration of processes is fundamental to ensure efficiency and eliminate operating errors in collective feeding units.

This way, with the use of specialized management systems, such as TecFood, it is possible to centralize all operations on a single platform, automating essential tasks such as stock control, menu planning and issuing invoices.

In addition, this centralization ensures that the data is always up to date, reducing dependence on manual processes and minimizing errors that can compromise both operations and profits.

Finally, automation improves the fluidity of processes, which translates into greater efficiency and cost control.

Discover how to reduce costs with our series of exclusive contents

Reducing costs is a constant challenge in the mass catering sector, and having efficient strategies makes the difference. With this in mind, we have created a series of articles to help you on this journey.

Here you will find practical tips, indispensable tools and intelligent strategies for optimizing resources, minimizing waste and increasing the efficiency of your operation.

Explore our content and discover how to transform the management of your business, achieving more sustainable and profitable results.

Strategic purchasing management

La purchasing management is fundamental to the success of corporate restaurants, influencing costs, quality and efficiency.

Therefore, solutions such as TecFood and the Approve app modernize processes, allowing the centralization of data, the automation of tasks and financial control.

With strategies such as menu planning, structured workflow and the use of shopping portals, it is possible to avoid waste, negotiate better conditions and keep the operation running smoothly.

Therefore, technology is the key to efficient management, which reduces errors, increases productivity and guarantees positive results for the operation and the end customer.

Stock management

La stock management is essential for mass food companies, helping to reduce costs and make efficient use of resources.

This is because the process involves strict inventory control, assertive purchasing planning and adequate storage, avoiding waste and ensuring continuous supply.

However, common mistakes, such as excessive purchases or inadequate storage, can be avoided with well-defined strategies and the use of specialized software, such as TecFood.

In addition, automating these processes improves operational efficiency, guarantees compliance with safety standards and allows greater control over inputs, improving productivity and business results.

Technical sheet

La food factsheet is an essential document in the management of restaurants and Food and Nutrition Units (UANs).

In this way, it details information such as the composition, nutritional value and storage instructions of the products, ensuring the standardization of preparations and facilitating cost control.

With precise data, it is possible to optimize planning, reduce waste and increase profitability.

In addition, the technical data sheet helps to comply with food safety regulations and transparent communication with consumers, especially about allergens and product expiry dates.

Menu planning

La menu planning It is essential to optimize production in corporate restaurants, reducing waste and costs by up to 2%. In addition to complying with technical specifications and ensuring food safety, it is essential to consider:

• Nutritional needs of the diners.
• Cost estimation for economic viability.
• Eating habits for greater acceptance.
• Availability of inputs to guarantee the offer.
• Estimating the number of meals to avoid excesses or shortages.
• Optimization of cooking time for operational efficiency.
• Human resources and infrastructure available in the Food and Nutrition Unit (UAN).

In this way, the absence of effective planning can result in last-minute changes, unnecessary purchases and increased spending, which indicates poor management.

Therefore, a well-planned menu has a positive impact on the entire restaurant infrastructure, promoting quality and customer satisfaction.

Resto ingesta

The concept of leftover food refers to prepared food that is not consumed, generating waste in industrial kitchens and corporate restaurants.

This distinguishes it from clean leftovers, which are unserved foods that can be safely reused.

Therefore, calculating the rest of the intake is essential to identify areas of waste, optimize resources and improve operational efficiency. This is why it is recommended:

• Determine the total amount of food prepared: record the total amount of food prepared for customers.
• Measuring the amount of food consumedevaluating the amount actually consumed by customers.
• Calculate the rest of your intake: subtract the amount consumed from the amount prepared and divide by the total amount prepared, obtaining the percentage of waste.

Reducing leftover intake contributes to the sustainability and profitability of the business. Tools such as TecFood help with this control, automating processes and providing accurate data for decision-making.

Industrial kitchen

Strategic cost management is vital to a company's success. industrial kitchen, especially in sectors such as collective meals, which include corporate restaurants, school meals and hospital diets.

Therefore, in order to optimize resources and increase operational efficiency, it is recommended:

• Efficient financial managementSupervise cash flow, plan assumptions and define relevant KPIs.
• Strategic menu planning: Centralize planning to avoid waste and control costs.
• Centralization of purchasing management: Automate purchasing processes to improve negotiations and reduce costs.
• Use of technology: Implement specialized software, such as TecFood, to integrate operations and increase productivity.

These practices help to reduce costs and improve performance in industrial kitchens.

Cook Chill

The method cook chill is an efficient solution for optimizing food service operations, combining food safety and greater productivity.

This is because this method consists of cooking food, cooling it quickly and storing it safely until it is consumed, ensuring quality, flavor and the preservation of nutrients.

Therefore, with benefits such as cost reduction, waste reduction and longer shelf life, It is widely adopted in sectors such as catering, mass catering and transportation.

However, successful implementation requires suitable equipment, efficient planning and management software such as TecFood, which automates processes and ensures compliance with food safety regulations.

Cost of Goods Sold

The Cost of Goods Sold (CMV) is an essential financial metric for restaurant and food establishment managers. It represents the direct cost of the raw materials used in the production of the items sold, such as ingredients and inputs.

Calculating and optimizing COGS allows you to evaluate operational efficiency, identify waste and adjust financial strategies, directly impacting on the profitability of the business.

A high CMV could indicate a waste of ingredients or poor stock management, while a very low CMV could suggest cutbacks that affect the quality of the products offered. Therefore, monitoring and optimizing COGS is crucial to balancing quality and profitability in the food sector.

Financial management

La financial management is crucial to the success of food companies. The use of unified software, such as the ERP systems in the cloud, automates processes, integrates sectors and provides accurate information on accounts payable and receivable, cost management and cash flow.

This reduces errors, increases operational efficiency and facilitates strategic decision-making. In addition, technology allows real-time access to financial data, improves stock control and optimizes purchasing planning.

Investing in modern technological solutions is essential to maintain competitiveness and guarantee financial health in the food sector.

Purchasing Portal

Conclusion: adopt efficient and sustainable cost management