Actual vs. Theoretical Reporting

Save on Food Costs with AvT Tracking

Maximize the efficiency of your inventory management by tracking the difference between your theoretical food costs and your actual food costs with Restaurant365.  The powerful Actual vs. Theoretical (AvT) analysis report provides data between what you should have spent on food and what you actually spent. By filling those gaps, you add money to your bottom line.

Understand the AvT Gap

Your AvT variance can change daily, and by tracking the variance, you not only see the total amount of money spent on ingredients, you can also close the gaps and redirect dollars to your net profit column.

Know what you should spend on food

Assume that for the meals sold for a given period, there were perfect portions with no waste and no shrinkage of ingredients. That’s your theoretical food cost.

Determine your actual food costs

Track what you spend on food for the same period accounting for imperfect portions, accidental waste, improper invoicing, or employee theft. That’s your actual food cost.

Uncover your AvT variance

Run the AvT analysis report to automate the entire process of tracking your theoretical food costs against your actual food costs to reveal the gaps in your plan versus execution.

Track Actual vs. Theoretical Food Costs

Identify the leaks in your profit margin. Running the Restaurant365 AvT report daily is the best way to help control the cost of individual ingredients.

Review controllable cost of goods by category

Run the CCOGS report by category built into the AvT report to get a high-level overview of variances by category (produce, dairy, poultry, seafood, etc.)

Identify variances in specific items

Drill down into invoices, units of measure and transactions for a deeper view into variances.

Resolve Errors

Fix mistakes caught by the system on transactions or units of measure (e.g., invoice billed for cases rather than lbs.) to identify and correct vendor billing errors.

Troubleshoot Actual vs. Theoretical Variances

Use the AvT analysis report as several reports in one to troubleshoot why variances are happening with raw ingredients. Before diving into specifics, cover the basics.

Avoid waste

Take accurate inventory counts and use smart ordering to avoid over ordering and to prevent inventory from sitting on your shelf.

Reduce errors

Audit prices on your invoices to identify billing errors and run key reports to spot variances over time.

Control portions

Train employees to control portions and make them accountable for over portioning.

Prevent theft

Track all sales and inventory daily, and closely monitor orders, usage and waste.

Ready to learn how Restaurant365 can help you streamline your back office and discover profits?

Schedule a demo today.

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