The many forms of shrinkage

Food

Waste, spoilage, over-production, poor yield, inconsistent portions, incorrect recipes, weak rotation, returns and unused potential.

Money leaking through the kitchen — food cost and portions left unchecked

Where it comes from

Food shrinkage rarely announces itself. It is a portion that crept up half an ounce at a time, a delivery accepted without checking weight against invoice, a prep list built from habit rather than yesterday's actual sales, or stock rotated by whoever happened to be on shift rather than a system everyone follows the same way. None of it looks like a crisis. All of it compounds.

The money issue

Food cost is usually the single biggest controllable line on the P&L after labour, and it moves in percentage points, not big dramatic numbers — which is exactly why it is dangerous. A menu running two or three points over its target food cost, sustained across a year of turnover, is not a rounding error. It is real, recoverable margin that never makes it to the bottom line, and by the time it shows up in the annual accounts, twelve months of it is already gone.

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