Restaurants Can Fix Prime Cost Without $11,000 Consultants

Restaurant operators know that a healthy prime cost - the percentage of sales spent on food and labor - is between 55 and 60%. However, many restaurants are currently running at 68%. The traditional solution to this problem is to hire a consultant, which can cost around $11,000.

## The Traditional Fix The consultant's engagement typically involves analyzing the restaurant's POS and payroll data, rebuilding the schedule, and re-costing menu items. This process usually works, with operators earning back the consultant's fee within months. However, many operators are hesitant to hire a consultant because they are unsure if the investment will pay off.

## The Role of AI A restaurant industry expert has suggested that AI can be used to fix prime cost issues without the need for a consultant. The expert tested this idea by creating a scope of work for a consultant and then using an AI system to analyze the data and provide recommendations. The AI system was able to provide detailed recommendations, including rebuilding the schedule and re-costing menu items, in just a few minutes.

## Implementing AI Solutions The expert recommends that restaurant operators ask for a consultant's proposal and then use an AI system to analyze the data and provide recommendations. This approach allows operators to get the benefits of a consultant's expertise without the cost. The AI system can provide unbiased recommendations, without being influenced by the consultant's services or interests. The operator can then decide which recommendations to implement, based on their own judgment and knowledge of the restaurant.

The expert notes that while AI can provide valuable insights and recommendations, it is not a replacement for human judgment and expertise. A consultant with experience and knowledge of the restaurant industry can still provide valuable guidance and support. However, by using AI to analyze data and provide recommendations, operators can make more informed decisions and improve their prime cost without breaking the bank.

To implement AI solutions, operators will need to have access to their own POS data and be willing to learn how to use AI tools. The expert notes that this does not require technical expertise, but rather a willingness to learn and adapt to new technologies. The GM or other staff members who are familiar with the POS reports and scheduling can be the ones to implement the AI solutions, making it a cost-effective and efficient way to improve prime cost.

The expert also notes that the line between what AI can do and what requires human expertise is moving, with AI tools becoming increasingly simple to use. However, there is still a need for human judgment and expertise, particularly when it comes to making decisions about the restaurant's operations and strategy. By combining the benefits of AI with human expertise, operators can make more informed decisions and improve their prime cost, without relying on expensive consultants.