On the walls of my kitchen, I write the cost of a single carrot. Not the wholesale price, but how much value we, as a restaurant, can extract out of that one carrot.  Minimizing waste is key in maximizing profit.  I want my chefs to think about the cost of a carrot before they throw stuff in the bin — are they throwing away the end of a 30c carrot?  Or are they throwing away an ingredient that can go into a soup or sauce that can earn the restaurant another $6?

— Neil Perry, Australian Restauranteur

A friend of mine is currently competing on Australia’s “Master Chef” TV show and gets to hear tidbits like this first-hand from successful restaurant entrepreneurs all day.  I am very envious.

Best-of-breed restaurateurs have excellent all-around business acumen.  They have to.  They are usually small enterprises with high running costs and every day is a fight for survival.  I’ve been a fan of reading restauranteur biographies for a while – they are a treasure-trove of practical business tips.