Restaurant brokers, Robin and Eric Gagnon are joined by a panel of industry experts as they  discuss “Controlling Food Costs" on Atlanta’s AM Talk 920.

The panel of industry experts includes President of LossBusters, Libby Libhart and Sysco Atlanta Restaurant Consultant, Brandon Sadler. The panel discusses the importance of loss prevention and how it can ultimately lower a restaurant’s food costs. 

“A lot of operators out there are chasing a fictitious number. There is no magic number to food cost” said, Brandon Sadler. One way operators can identify their target goal is by hiring a loss prevention expert who will gauge food costs by looking at the most popular food items, examining physical plate costs and weighted averages in order to develop a theoretical food cost.

The panel addresses once and for all the issue of paper goods. Are they in or out? Listeners also gain insight on menu engineering and item placement. Sadler shares a story of a chicken wing restaurant whose most expensive meal was 20 chicken wings and a bottle Dom Perignon for $199!? Learn why that restaurant’s eye gaze pattern ultimately worked in their favor. 

Libby Libhart talks employees and restaurant goals. What’s in it for them? Operators should provide employees with incentives so that they are eager to help the restaurant reach their targeted goal. Does this mean operators should reward their employees with all-expense paid trips to Hawaii? Of course not! Gift cards, honorable mentions and free meals will do just fine.

The panel lists the top factors that lead an operator into financial hardships. The common cases of theft involve employees working in the late night operations better known as the “late night exchange.” Did you know some restaurant employees trade food with their company’s competitors? Giving away food is not necessary the issue, it is the fact that the free food is undocumented. Find out why the solution to this problem is clear trash bags.

Brandon Sadler lists the top two food cost killers. Listeners learn how poor employee cash handling and deceitful managers can affect a restaurant’s food cost. “If you don’t know how to steal from yourself, you’re the only one in the building who doesn’t... you have to have controls in place” said, Brandon Sadler. “Inspect what you expect” said, restaurant broker Robin Gagnon.

What is the common solution to lowering food costs? If you guessed buying cheaper food, you may be wrong. Is saving a few dollars more important than the quality of the food? “Don’t be pound wise and penny foolish” said, Robin Gagnon. 

In the last segment, “Restaurant Reality”, restaurant brokers Robin and Eric Gagnon discuss concepts that have lower and higher food costs. Typically, restaurants that serve a lot of protein (i.e. meats) have a higher food cost than those that do not. A Brazilian steak house will definitely have a higher food cost compared to a taco stand. The duo reiterates the importance of employee education and incentives. The restaurant brokers discuss the topic of buffets and how over-serving and over-plating can raise food costs. How can a buffet over-serve food? Well, when there is no control over when food is changed out and how often is its coming out, waste can occur. Plating food the right way can save a restaurant’s food costs anywhere from 5-10 percent. Eric Gagnon shares a story of a rib restaurant that generated 1 million in sales but lost thousands of dollars due to incorrect price points.

Guests include:

Brandon Sadler, Restaurant Consultant for Sysco Atlanta

Brandon Sadler has worked in the Restaurant Industry for 20 years. He was the owner/manager of Digger’s Sports Grill; a highly successful restaurant in Lawrenceville for 9 years then sold his restaurant and began working as a freelance consultant, creating successful restaurant concepts. Brandon has now created a Consulting program at Sysco Atlanta to help their customers succeed.

D.B Libby Libhart, President of LossBusters

D. B. “Libby” Libhart has over 30 years of experience in the loss prevention industry, working in both the retail and restaurant industries.  Before launching his own company, LL Training and Consultant Group, LLC/LossBusters, Libby served as the Senior Director of U.S. Security and Safety for McDonald’s Corporation with over 14,000 locations in the U.S.  Libby entered the Quick Serve restaurant industry with Taco Bell and subsequently YUM Brands.  Libby and his teams have saved millions of dollars for companies with the development and implementation of sound loss control and crime prevention principles, increase profitability, and created a safer and more secure environment for customers and employees.

Libby provides daily tips on restaurant security, safety, and loss prevention on twitter, @LossBusters.