Reducing Restaurant Food Costs
We are well aware that the purpose of any business is to generate high profitability at the lowest possible cost since this will translate into higher income. Although it may seem logical, not all businesses work in this way. Due to poor management organizations work in the red for years until this results in an inevitable closure of the business.
One of the most difficult businesses to keep afloat are restaurants due to the volatility of inventories and sales. Therefore, it is necessary to be strict in taking measures to guarantee success.
We want to clarify that every experience is different. However, we are sure that with these measures you will be able to have better control of your business and what happens with it, so not everything will be managed by the inertia of the economy of the country where you are.
Without further ado, here are some tips that will help you reduce and boost your restaurant:
- Calculate your food cost: Although it can be a tedious and time-consuming task, the best way to plan optimally is to do a cost estimate. This will help you save money, time and food, since one of the most common characteristics in restaurants is to have losses due to excess products. Therefore optimal planning according to the sales projection for that time of the year will make you order the right amount of food from your suppliers.
- Keep track of your inventory on an ongoing basis: Inventory plays a key role in any business. Keeping a strict inventory of incoming and outgoing food and other restaurant goods will allow you to have an overview of the economic activity of the business. It will also let you know when you should order more supplies and when you should not. This is a smart way to stock up since everything will depend on your product shipment. Thanks to technology, there are automated ways to keep your inventory. This is a big plus because you only have to worry about the inputs and outputs. If your business is small and does not warrant a large investment in an inventory system you can do it manually. The results will be the same as long as your controls are continuous and organized.
- Find the supplier that best fits your budget: We usually wait for the suppliers to come to our restaurants, and we are not the ones who go to the suppliers. This makes a big difference between successful restaurants and those that are not. The supplier that can offer lower prices and good quality should be the one chosen. Here lies one of the biggest secrets to reducing costs in any business.
- Implements portion control: Although it seems an obvious measure, not all restaurants implement it. A large percentage of businesses do not have ounce measurements of how much of each food item is being served. When this is the case, there is a notorious waste of food that must be constantly replenished, which translates into losses. It is always advisable to have clear measurements of the portions that will be put on each plate.
- Make a price calculation per plate: One of the smartest ways to have honest and competitive prices in your restaurant menu is to make an individual calculation for each dish you offer. This will allow you not only to have better control of the resources but also to save in terms of the quantities you use. Control is the key to success. The more organized your business is, the better performance and results will provide.
- Use the FIFO method: The first-in, first-out method is one of the most widely known and implemented worldwide. It is about making use of the oldest products in the inventory. The methodological use of this method is simple, so inventories should not be mixed. One of the most effective ways to know which one is in use is to identify the inventories by lot.
- Train your staff: Trained staff translates into successful work and better use of resources. Although this may mean an initial investment, it is best to give each employee as much training as possible in his or her area of work, as this will translate over time into efficiency and quality.
- Limit the number of dishes on your menu: Although we all love a wide and diverse menu of dishes, the truth is that it is not profitable for all restaurants to offer so many varieties. A good manager will be able to detect which dishes are customer favorites and which ones sell poorly. This will allow a greater availability of inventory for other dishes, and at the same time, it will stop counting on ingredients that are unnecessary and unprofitable.
- Keep an eye on overstaffing: One of the main money leaks is the excess of workers. Deyernine how many employees are needed to perform a given task efficiently. Depending on the size of your location, it will be better to keep a high number of employees or not. Constantly evaluate this point.
- Make reasonable use of the services: Making efficient use of basic services such as electricity, water and gas will also allow you to obtain small savings that over time you can transform into bonuses for your employees. Impress the culture of efficient use of resources in your work team.
With the methods explained above, you will be able to create a better economy for your restaurant. Keep in mind that every business is different, and some variables come into consideration. Such as region, country, and time of year that can make the decisions to be made vary. However, these methods mean a better organization that will bring efficiency and results in the medium term.
Likewise, the help of professionals specialized in the field can also help you to have a broader vision of these methods. Investing in your business is investing in you, do it now. Make your restaurant profitable.