From calzones to calamari, if one business sector will always have customers, it’s food. That’s why restaurants will likely always be a constant, even as societal and technological changes make businesses come and go.
However, just because everyone eats doesn’t mean income is always as consistent as we would like it to be. That’s when reducing our spending becomes necessary. Our tips for cutting costs at your restaurant will help you do that without reducing your food’s quality or your customer’s satisfaction.
Practice Consistent Budgeting
To cut costs effectively, you have to know what your restaurant is spending first. That is where budgeting comes in. Having a strategic and accurate restaurant budgeting plan is the most trustworthy way of maximizing your profit. This means creating a budget and then tracking your costs on a regular basis. Using a budget can help you make more informed financial decisions.When you have laid out where you are spending money, you can identify areas where spending is higher or areas where you may consider seeking out other vendors.
Avoid High Employee Turnover
As business owners, we tend to focus on creating more efficient workers. While this is important, there is something to say about the value of creating more satisfied workers. After all, the cost of hiring new employees is higher than retaining old ones.
Employee turnover rates are always high in the restaurant business, but you can help reduce it in your business by:
- Implementing a training program that equips employees to success
- Improving communication
- Opening up space for managerial feedback
- Remain aware of what happens at the front and back of the house
- Putting policies in place that protect employees from unruly customers
Manage Food Waste
Wasted food is one of the common drains on your finances as a restaurant, so finding ways to reduce this is one of the simplest ways to cut costs at your restaurants. Here are a few simple ways to reduce food waste:
- Avoid over-prepping
- Use the first-in, first-out method: using the ingredients that have been in the pantry before ones bought later
- Use vegetable peels for vegetable stock
- If you have ingredients set to expire soon, create a daily special to use them up
- Ensure perishable foods are stored correctly
A faulty or damaged refrigeration system can still lead to food waste and a large repair bill, even if you store food correctly. Keeping up with equipment maintenance can help avoid this.
