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Departments: Don't Let Food Cost Eat Up Bottom Line Profits

Food costs are the most significant driver of restaurant business profitability. For a typical restaurant chain, a million dollar reduction in food costs has the same impact on the bottom line as a $25 million increase in same store sales or opening 22 new stores. When a small change in this key input can lead to a magnified impact on the bottom line, costs must be managed aggressively - particularly in today’s inflationary and competitive environment.

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April/May 2014

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