Every little counts: saving money in a pub

Michelle Perrett looks at ways pub caterers can help combat the impact of rising food costs.

Food commodity prices have risen significantly again in the past year and, with VAT hitting 20% this month, cutting costs across your business has never been as important.

If you want to stay competitive and keep your menu prices static, then it's time to get more creative. And never more so than on the food side of the business, where the price of basics such as wheat has rocketed. In the past three years, food prices overall have increased by as much as 58%, so it is never too early to start taking a new approach to fighting against those rising food costs.

Choose cheaper meat cuts​

Speak to your catering butcher and find out what deals they can offer you. Using cuts of quality beef, lamb and pork that utilise more of the carcass and are more readily available will provide better value for money.

For alternative cuts, your butcher or supplier can explain what makes them different, how they are flavoured and how they can be used.

EBLEX, the organisation that represents the beef and lamb industry, advises licensees to think about creating dishes that use a combination of both expensive and added-value cuts, thereby reducing plate costs.

For example, licensees serving a traditional steak meal should look for alternatives such as flat iron steaks, top sirloin pavé, lower sirloin pavé, hanger steaks and bavettes.

"Customers tend to see meat as the 'hero' of the plate and it is the item they tend to remember, so it's important not to compromise on quality, said EBLEX foodservice project manager, Hugh Judd.

"If you are looking to reduce costs, it is far better to alter accompaniments or garnishes, or choose cheaper cuts of meat from the same quality carcass."

His view is supported by Tony Goodger, foodservice trade sector manager for BPEX, which represents the pork industry.

"Don't cut back on quality. Consumers will always seek out the quality proposition. What chefs and licensees need to focus on is building a relationship with their catering butcher and taking less fashionable cuts," Goodger added.

He advises licensees to look at pork collar which can be roasted, braised or sliced into steaks as it is highly versatile, carries flavours well and is good value for money.

BPEX also advises licensees to consider offering pig's head which is a great value for money option. Serving a pork terrine, made with pig's head, with a piccalilli of winter root vegetables and some warm crusty bread is a low-cost starter or lunchtime meal.

Andy Whiteman, owner of freehold the Harris Arms in Portgate, Devon, says: "We won't increase menu prices until spring — to do so now would be a bad idea. We are looking at cheaper cuts like beef cheeks and casseroles with pheasant and rabbit. We will also be using baby goat, kid, as a special. It's a great alternative to lamb at an

affordable price."

Run a weekly stew night throughout the winter like the Shears Inn, in Collingbourne Ducis, Wiltshire, which sells the dish for £9.50 on Monday nights.

Don't forget the basics​

It is imperative hosts keep a close eye on costs to get their gross profit margins right — aiming for a target of around 65% to 70%.

Punch Taverns' Alan Todd said: "Some hosts don't know what they are buying their food for, which creates problems in managing margins and many could do with help." He advises hosts to consider using pubco food packages to benefit from better rates.

Scottish & Newcastle Pub Company is advising its licensees to consider cheaper own-label products rather than branded products.

Fish from a bigger pond​

Fish is a major part of any pub's menu, ranging from the traditional fish and chips to more upmarket dishes such as sea bass. Fish prices have fluctuated, along with other products this year, with species such as cod seeing big price increases.

Cheaper alternatives include pangasius, which is great battered. Other alternatives include haddock and pollack.

Pub caterers are advised to speak to their fish supplier about alternative options.

According to S&NPC food development manager Ben Bartlett, licensees should speak to their fishmonger about using different types of fish and purchasing off-cuts, which are good for using in dishes such as fish pie.

Look at little-known species such as gurnard and Cornish albacore tuna, which are available through suppliers including M&J Seafood.

Cut down on energy costs​

Don't forget, it is not just the cost of food that is rising, it is the cost of energy to cook the food. Consider the best methods of cooking dishes. BPEX, along with Thames Valley University, researched the best way to cook a roast shoulder of pork. It found that, when roasting the joint in a convection oven with no additional moisture but with the meat covered in foil, it took an hour and 30 minutes of cooking time (180°C).

This resulted in a 20% weight loss compared with an average 26.8% weight loss across all other cooking methods. It also found that adding 200ml of water to the roasting would further reduce the weight loss to around 15%. The result was around 2.5 additional 80g portions and the cooking time was 17 minutes less than the average cooking time.

Ensure that appliances are switched on only when needed and switched off between services, and that lights are switched off when not in use.

If you find a supplier with cheaper prices, explain your situation to your current supplier who may be able to match or beat the prices and avoid losing you as a customer.

Introduce a wastage book​

S&NPC's head of catering Ben Bartlett advises licensees to introduce a wastage book for food as they do for beer.

This can help the pub track any food wastage and monitor spend, such as free meals to staff and free food at pub events.

Bartlett said: "Get your chef to note down everything from free meals to freebies, such as feeding the local football team every week. You don't realise how all this extra adds up."

Introduce clear waste bags in the kitchen so you can see what is being thrown out. Shock staff by putting on gloves and looking in bins to check for ingredients that could have been used.

Portion size​

Head of catering for Punch Taverns leased division Alan Todd said: "Licensees should investigate if they're chucking a lot of food away from plates. It means they're either over-portioning the plate or they need to look at whether customers like the food."

Look at how much of a portion of chips, peas or mash is being returned and reduce it.

Cutting down your pea portion by 30%, for example, can make you significant savings.

The right menu at the right prices​

With prices continuing to rise it's important that you review your menu regularly — what used to be a profitable offer may now be costing you money. Licensees should keep popular dishes with good margins, removing poor sellers and those with smaller margins.

Punch advises its licensees to consider reducing their regular menu and supplementing it with daily or weekly specials — which helps stock control and allows more flexibility to use up ingredients. If you have vegetables and meat left over from your Sunday roast then don't bin them, but use them to make soups, pies and curries for your specials board.

As Charles Woolley, CEO of supplier Rectory Food Group, says: "Shop around for better-value alternatives: chefs can offer the same dish at the same price point, but simply source better-value components and ingredients."

Be innovative with using the same ingredients, such as chicken breasts, to create a number of different dishes.

Customers are often willing to try new dishes with lesser-known ingredients if they are presented well. The key is to ensure staff are knowledgeable about the dishes.

When introducing new dishes, start small and trial them on a special menu or blackboard first. It is better to sell out and leave customers wanting more than to undersell.

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