Precision Cuts Save Costs and Quality

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Costs of goods

With today’s food costs, it is essential that tea shop owners look at costs with “big business manager” eyes, said Dean Jablon, CEO of The Mulberry Tea House, who will speak on the topic at the upcoming World Tea Expo.

Jablon advised evaluating every menu item’s cost. Other sources recommended rectifying under-priced items by adjusting serving and purchase sizes, and making deals.

Jesse Jacobs, owner of Samovar Tea Lounge, scrutinized how products were being prepared and found that about half the time, teas were brewed with an incorrect amount of leaves – most often too much.

“Even a quarter teaspoon too much can make a huge difference when you’re talking about 1,000 pots of rooibos,” Jacobs said. He implemented staff training for standardized, accurate production.

Jablon saves hundreds of dollars a month by regulating quantities of clotted cream, an item that’s often costlier than the scones it’s served with, yet left untouched by health-conscious customers. Now, it’s served by request (at no additional charge), instead of automatically.

Cynthia Fazekas, Adagio Teas’ U.S. wholesale manager for direct sales and another WTE speaker, said many companies are ordering lower quantities to lower inventory costs, but this strategy ultimately increases costs because of higher shipping rates and lower economies of scale.

Conversely, Jablon said he was vastly over-ordering from major foodservice distributors because of required minimums or delivery frequencies. Since switching to local grocery stores, he pays more per unit, but less per month.

You can read the remainder of this article on World Tea News.