Numbers Numbers Numbers

These are the kinds of details you remember for a lifetime. In analyzing a word problem today, Chef Larry scoffed at the huge inventory the restaurant was carrying: about $21,000 for $700 worth of monthly food costs. "That's outrageous!" he exclaimed. "At most, they should have an inventory about 20% of monthly sales," in this case, about $600. Inventory should equal +/- 20% of monthly sales. Anything more are just frozen (maybe literally) assets.

I have to admit, I'm not even speaking up in class anymore when we're doing budget calculations on the board. No need for me to demonstrate my grasp of the material. Chef knows that I know. When he reviewed our labor schedule today, he said, "Looks like you've done this before." Yes, but never for a pretend restaurant.

About that labor schedule: Jim didn't come to class today, so he's been cut completely. That kept me from having to implement an across-the-board reduction in wages for the salaried staff (that's us, the Core Four), because I want to show a decent profit on our projected income statement. After some discussion with Chef Larry about our kitchen plan and flow and timing, Andy was able to reduce the hot line by 4 feet, thereby saving us $8000 in hood costs. Chef gave some allowances for whimsy -- Andy's circular staircase would never pass inspection, and the whole idea of having the back door open directly into a two sided elevator is both imaginative and expensive. Sort of "Get Smart"-like, actually. In fact, we could retool the whole concept and open a spy bar. Menus in code, and that sort of thing. A "cone of silence" over the two-tops.

At any rate, we'll break even at week 33, assuming I did the math correctly.