5.3.1. Controlling Costs 

Improving an organization’s bottom line can be achieved through either increasing revenues or controlling and reducing costs. In many onsite foodservice operations, where opportunities to boost revenues are limited, the emphasis often lies on cost control and reduction. Managing labor and food costs is a fundamental responsibility of the foodservice operation’s manager.

Many foodservice managers create dashboards to provide a quick overview of key financial data on a monthly basis. These dashboards function similarly to a car’s dashboard, offering managers an easily accessible view of crucial financial metrics.

According to Pavesic and Magnant (2005), effective cost-control programs should: 

• Provide information for daily decision-making. 

• Monitor individual and departmental efficiency. 

• Inform management of income, expenses, and deviations from the budget. 

• Prevent fraud and theft. 

• Serve as a foundation for understanding the company’s future trajectory, rather than merely reflecting past performance. 

• Emphasize prevention rather than correction. 

• Aim to maximize profit, not just minimize loss.