9 Sureshot Ways to Cost Control in Your Restaurant

 

For every business to flourish, cost-cutting is an important tool. And restaurants are no different. Cost-cutting or cost control in restaurants generally refers to the continuous process of reducing the unnecessary expenses that your business incurs to save utmost and increase profit.

Cost control in restaurants is further important as their profit margin is very slim, running somewhat between 3-5%. And with the standard costs of food and beverage items increasing rapidly, restaurants must focus on saving each and every penny.

1. Reduce Food Wastage

Did you know on average, a high-end restaurant wastes about 75,000 pounds of food annually? Meaning, wasting a lot of money! Whereas trimming your food waste is actually very easy.

FIFO Method: FIFO or First In First Out Method is a widely accepted model for saving food. As simple as it sounds, you make sure the raw materials/ingredients that were purchased first are used first. This process ensures that the old goods are used before they reach their expiry date and they don’t get wasted.

2. Staff Smartly

Staff is the second most important pillar of your restaurant after food. To control labor costs in your restaurant you need to train your staff efficiently and make sure they follow specific norms. From switching off appliances while not in use to keeping count of portions and covering tables, ensure your staff is all equipped. 

3. Go Digital 

Today, businesses across the world have shifted to digital modus operandi. And restaurants cannot fall behind. From accepting to delivering orders, restaurant operations are toilsome. Also, when done manually, it leaves room for error and most often consumes time.  

4. Minimizing The Number of Suppliers

One clever way to save on costs is settling for a single or a minimal number of suppliers. Sometimes it is seen that negotiating with suppliers often leads to multiple vendors for multiple ingredients but the cost summation often exceeds the incurred budget.

5. Save on Utilities

Utilities are one of the most expensive investments for a restaurant – from decor to appliances like refrigerators and resources like electricity and water – all come under utilities. 

6. Report Regularly

Another common reason for not being able to keep a check on your expenses is not keeping a track of them. Real-time reporting can be beneficial in saving your bucks. With regular monitoring and tracking of your income and expenditure, you can have a tight grip on your restaurant’s economy and find out the revenue leakage points. 

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