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hi guys tim here from foodie coaches and
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are you looking to increase your profit
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in the business but don't really know
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where to start
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the number one neglected thing about
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venues is
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their food cost and right now we're in
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an industry where 85 percent of the
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industry's profit was under 10 percent
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and today i want to show you a super
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simple way to get that profit above 10
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very very easy and you can do it in
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about two or three hours a week and you
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can actually put a system in place to
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get your team do it and it's focusing on
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your food cost so over the last couple
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of months we've been rolling out a
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webinar called uh secrets to get your
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food cost under 25 and the whole
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strategy around this is a bit of a
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concept that people aren't talking about
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in this industry it's a bit of a model
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where people are missing and they're not
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focusing on this one area now the thing
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is it comes down to numbers
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and being an account and loving numbers
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we need to start talking about what they
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look like let's jump in here so if we've
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got a venue doing a thousand
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transactions a week we're twenty dollars
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a transaction and we've got a labor cost
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of about thirty seven percent and when i
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say thirty seven percent we know that in
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this industry right now labor's the top
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thing it's expensive and if you're a
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venue owner you need to be paying
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yourself so what in here is we've got
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our profit levers calculator which is
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available on our website but if we start
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looking at we've got food and bev costs
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to say 32
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uh yours might be better or worse
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and we've got an overhead allocation of
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about 25 which gives us a net even of 5
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000 a week
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on our transactions which to be honest
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so what's the whole concept here and
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what do we need to do well we're not
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going to change anything else um in our
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business at all not the number of people
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through the door not
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and it's like not anything else we're
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not going to focus on our labor we're
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not going to touch anything else in our
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business and we're not definitely not
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going to listen who i can who says you
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need to lower your labour costs you
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don't need a lot of your labor costs you
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need to focus on your food costs you
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need to focus on maximizing average
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customer spend then bringing more people
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through the door and it's a way way
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better solution than you going back in
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the venue and working more hours so when
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it comes down to this food cost uh how
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do we get our food costs from
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32
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to 25 and let's be honest it's a big
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drop what we're going to do is we're
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going to do this by focusing on an area
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that not enough people focus on so uh
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inside of here we've got a worksheet
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but there's three things that uh make a
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really really profitable venue when it
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starts in the kitchen and the first one
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is our costings and we all know that we
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should be costing at our menu our menu
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should be cost and it should be a liquid
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document so it should be getting updated
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it should be
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always improved and something that our
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team ourselves as owners and now
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certainly our chef should be focusing on
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now if our chef isn't focusing on this
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more than likely they are what you call
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cook and we all know we've got a skill
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shortage so when we start talking about
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costings um this is the area that
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everyone talks about you know have you
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got your food cost sorted but today
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we're not going to talk about that at
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all we're going to talk about two other
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areas of our business and the next one's
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culture we want to build a culture into
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our business
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of focusing on costs we want our team
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to be cost focused and we want to build
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that into a culture and to be honest not
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enough kitchens have it and lastly what
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i'm going to show you today is you want
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to talk about consistency now
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this is part of a bigger training that
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we have and if you want a copy of this
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training
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you will be able to re-watch it on our
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site so what we're going to talk about
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today is consistency and when we start
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talking about consistency there's three
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parts to it and it's really
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interesting so here has been here venue
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and who's going across the menu oh of
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course my menu it looks so great and
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then they look at their p l at the end
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of the month or the end of the quarter
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and their food costs are still
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rubbish
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so what do we need to do and how does
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this work well the first thing is is
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what we need to do is we need to think
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about our kitchen like a car factory
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production one and what i mean by that
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is that so many people have these
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beautifully costed menus but when their
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food cost doesn't work out they're like
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where'd it go wrong and it went wrong
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goes wrong by the consistency of what
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happens in the kitchen and you're like
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oh well what's this got to do with
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automotive car production well what this
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has to do with it is that i want you to
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think about your kitchen producing food
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and producing menu items the same way as
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a factory reproduced cars now you don't
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get an extra steering wheel in a car or
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a car doesn't roll out with a missing
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like tyre or the window half rolled down
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and missing the glass and what i mean by
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that is that hospitality is one of the
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hardest industries in the world because
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it comes down to the human perception
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and then following a process or a recipe
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to make sure it happens how many times
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in your venue have you gone there and
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there's an extra hash brown on the plate
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and you're like why did we start putting
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three hash browns on the plate i don't
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know i just thought i'd put three on
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there i felt like putting three on there
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today so you imagine like you've got a
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car and your car comes out it's got two
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sunroofs extra sunroof not every car's
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got an extra sunroof but only your car
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does why we got an extra sunroof ah
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it was a rainy day and i just wanted
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people to see the sun more
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this is what happens in kitchens and
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we've seen it over and over and over
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when uh we first started off 30 coaches
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i learnt this lesson with absolutely
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beautiful lady uh called tony um she's
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an amazing person she had an amazing
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venue and her food costs on paper were
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like
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crazy they were so good they were like
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22 it was beautiful but when it come to
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running um the piano her panda was
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always like mid-30s
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is going on here and she was not a
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shouner and when i call her shona which
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is a chef who's an owner what she was
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was just a lady who created this amazing
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venue and she ended up with a kitchen
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full of people and it all comes down to
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consistency so the way we fixed this
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inside of her venue was doing three
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things
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and we broke down the consistency piece
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i'm just going to call it consistency
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because i can't write consistency in
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there but we broke it down into three
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areas one is preparation
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production
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and lastly was purchasing
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so right now if you're watching this i'm
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going to assume that you already have
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your costing sorted out
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and you need a little bit of extra help
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so in this webinar we talk about how to
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dial in your purchasing your preparation
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and your production to get your food
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costs super consistent what we're going
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to do here is we're going to get our
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kitchen to do six steps and we're going
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to break them down into six really key
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areas one
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is a supplier review so every single
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week we're going to get our team to call
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at least two or three suppliers and see
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if they get to go to any better prices
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we use a kitchen budget so we're going
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to set a cash budget for our kitchen
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that they're going to try and stick to
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and yes i know some weeks are going to
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be bigger than others we're going to set
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a budget number three is we're going to
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design a prep schedule and the reason
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why we want to design a prep schedule is
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we want to make sure that we're
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controlling wastage inside of our venue
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then we this leads into a wastage review
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so we're going to put clear plastic
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buckets on top of our benches to make
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sure that this happens and the next
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thing is we're going to talk about
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portion control and this comes into the
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production section and we're going to
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make sure that we build a culture in our
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business talking about controlling
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portions then we're going to have a hero
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dish what is the aerodish well really
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simply is that we are going to go and
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we're going to create a dish every
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single week on exactly how it should be
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and then we're going to train our team
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to what it looks like we're going to use
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the same dish to take our social media
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photos and then we're going to empower
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our front of house team to
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take back food when it's not right or
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report food when it's not right and then
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we're going to end up with a culture of
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accountability to make things happen
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now i know what you're thinking you're
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going to say yeah that's all good but my
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labor's already high enough how do i do
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this so let's run some numbers around
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this and let's see what this looks like
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so say we're going to run this
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we're going to allow two hours per week
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for
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our team to make this happen and you
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know even if we kind of roll this out at
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going i don't know good chef call it
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call our costs as a hundred dollars in
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labor
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and now that's two hours a week times 52
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it's going to be like 5 000
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and that's going to be the cost to the
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business
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but then let's look at some other
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numbers around making our food cost down
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so all of a sudden when we start looking
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at our food cost over here if we drop
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our food cost from 32
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down 25 we pick up an extra 1500 a week
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pretty simple right
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but just say if we take our food costs
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from 32 and a half percent
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down to 31.5 so that's an extra 200 a
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week so what we've done effectively now
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is we've dropped our food costs by one
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percent
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but what that has done that has added an
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extra 200 per week onto our bottom
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one
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times up by 52
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we're at 10k
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so all of a sudden you take the 5k in
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the 10k
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and with 5 000
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per year
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doesn't sound like a lot right
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i know
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so what you need to do right now is you
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need to go and click on the link below
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grab the training grab the replay of
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this webinar
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step this out watch it first yourself
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and sit down with your team and watch it
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with your team and implement this
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consistency model into your kitchen and
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start lowering your cost we'll see
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[Music]
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you