Food Cost + Labor = Your Two Biggest Levers
Restaurant operators face a brutal reality: 91% of QSR operators report higher food costs, and 89% face higher labor costs, according to Connors Group research. These two line items represent 55–65% of total revenue — and they're the areas where theft, waste, and inefficiency hide most effectively.
When food cost runs 3–5 percentage points above target, the question is always the same: is it vendor pricing, legitimate waste, or theft? Without daily reconciliation of food purchases against sales, there's no way to answer that question until month-end — and by then, the damage is done.
Internal employee theft is responsible for 75% of restaurant inventory shortages, according to Clover research. That's not external shoplifting — that's your own team: off-ticket food production, closing-shift "take-home" behavior, unauthorized meals, and back-door product removal. Combined with voided transactions, unauthorized discounts, and tip manipulation, restaurants lose an estimated 4% of total sales to internal theft.