Reducing Information Overload When Setting Up a COGS System

2 Min Read By Jeremiah Anzelc

In this age of information, there is an unlimited amount of available data. Setting up a Cost of Goods Sold (COGS) system, can be both a blessing and a curse. With COGS being one of the largest expenses in the restaurant, tracking costs is of the utmost importance. The problem starts when people get stuck troubleshooting cost of goods across every single item; this requires a lot of time and effort. If the amount of effort needed exceeds the reduction of costs, then it loses value. How can you reduce information overload?

Narrow the ScopeFocus on items that drive the business. Don’t get bogged down in the small details. When looking into which items to include, focus on high dollar, high velocity, or high contribution items. Is it really worth spending an hour looking into a $0.24 variance in kosher salt? After systems have been established for items that drive your business, other items can be added in.

Limit InputToo many chefs spoil the soup. Have a few key people involved in the…