Show Notes
- Pareto’s Rule
- Vilfredo Pareto was a 19th-century economist and sociologist interested in land ownership and the social distribution of wealth.
- Pareto found a pattern: over 80% of the land in Italy was owned by less than 20% of the population.
- The Italian economy was highly concentrated among a relatively small group of individuals.
- In Pareto’s garden, 20% of the pea pods produced 80% of the peas.
- Identify your critical few and watch them like a hawk
- If you spend more than 1% of your food cost on it you should be paying attention to it.
- Food sales are 100,000 1% = 1,000
- Food sales are 30,000 1% = 300
- Follow that rule of thumb or find your own guideline
- You’ll probably end up following 8 to 10 items.
- Zero in and start asking question.
- How the products are handled?
- Is there waste?
- Portioning – new prep guy or line cook?
- Yield – lazy prep?
- Spoilage – over ordering?
- Theft – make it hard to steal
- Make it easy for honest people to be honest
- Check the critical few daily
- Ask lots of questions
- Should I lock it up?
- Should I move it to a different location?
- Am I locking up the right things?
- Stop looking at dollars and start looking at physical volume
- Calculate a theoretical usage by tallying item sales
- 300 single hamburgers
- 200 double hamburgers
- 500 patties sold
- Calculate actual usage
- 200 beginning inventory
- 500 purchases
- 100 ending inventory
- 600 patties used ???
- start asking questions
- Isolate the problem
- Resolve it and move on
- Toot your horn
- Nobody else will
- Over communicate
- Inspires confidence
- Calculate a theoretical usage by tallying item sales
- Don’t become blind to your own mess
- Refresh & focus
- Make a custom check list wunderlist.com
- Scan trash cans
- Review prep lists
- Check security devices & systems
- Actually take inventory don’t just guesstimate orders
- Slow down and pay attention
- Be present and focused
- Breathe