Ways Restaurants Can Save Money: 10 Tips to Keep Your Business on Track
With the cost of food, labor, and other materials continuing to rise, it’s becoming increasingly challenging for restaurants to operate efficiently and still deliver the high-quality experience that customers have come to expect. It’s no secret that success in the restaurant business requires constant attention to detail and frugal thinking when it comes to keeping costs down. The restaurant industry is extremely competitive, which means it is essential that you do everything you can to keep your costs low while still providing a quality product. An expert industry insider has revealed some tips on how restaurants can save money and stay profitable at the same time.
As more and more people enter the restaurant industry every year, it may seem like it would be easier to find quality employees, but that's not the case. Restaurants are often competing with many other businesses for the same pool of workers, which drives up the price to hire. If you're struggling with finding qualified workers, consider offering a sign-on bonus or incentive. You can also set up an apprenticeship program to help train people. One way to reduce your hiring costs is to offer a flexible schedule, particularly for front-of-house positions. More and more people want a flexible work schedule to fit with their family or school schedule.
Streamline Your Menu
It’s important to remember that people come to your restaurant for the food, so it’s critical that you offer a menu that meets their needs and tastes. But, you don’t want to overwhelm guests with an extensive menu that they don’t have the time or desire to read through. If you’re known for amazing burgers, you don’t need to fill the menu up with pasta options, pizzas, or fish dishes. Keeping a simple, streamlined menu can actually save you money on prep and increase customer satisfaction in the long run.
Another way to think about it is that in today’s fast-paced world, people don’t have time to sit down for a three-course meal. Instead, they want to be able to quickly grab something to eat on the go—so, your menu should offer plenty of quick-service items. While of course you should offer some sit-down options, you also want to consider pruning your menu to make it more streamlined.
Dining Room Management
If you have a restaurant that requires patrons to sit down and be waited on by staff, you need to make sure those servers are being as efficient as possible. Some of the ways that you can keep your dining room operations running smoothly include: - Hiring the right mix of staff members - It’s important to hire for the right mix of skills and personalities. Make sure that your staff are communicating with each other, guests, and managers to make sure orders are being filled correctly and efficiently. - Setting clear expectations - You can’t expect your staff to know what is expected of them if you don’t communicate those expectations clearly. Set up a training program with clear instructions on what is expected of each staff member. - Understanding the dining room flow - There are certain times of the day when the dining room will be busier than others. It’s important that you understand how the wait staff should flow and where they should be during different times of the day.
Food Inventory and Purchasing Strategies
How often you purchase your food and beverages directly impacts your bottom line. If you purchase too much, you’ll have to throw away money, but if you don’t buy enough, you’ll have to end up shutting down for a day or two because you ran out of inventory. - Ask your suppliers about their reordering policies - Depending on the food that you purchase, you may need to reorder each week, every two weeks, or even every month. Make sure you understand your suppliers’ reordering policies before you buy so that you can build that into your inventory system. - Create a food inventory system - The type of system that you use to track your food inventory will vary based on your restaurant’s size and structure. Make sure that everyone on staff knows how to use this system to track the food that is being used each day, so you know when you need to reorder. - Review your purchasing strategy - A good purchasing strategy will help you purchase the right amount, at the right time, from the right source. Be sure to work with your purchasing team to review their strategy to make sure it’s helping you reduce costs.
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The best marketing campaigns can only go so far if your product or service isn’t up to snuff. The reality is that if the food or drinks aren’t tasty, or the service staff isn’t friendly and attentive, people aren’t going to come back, no matter how much money you spend on ads. You need to make sure that every aspect of your operation is up to snuff before spending money on marketing. Once everything is in place, you can work on creating an online presence and promoting your restaurant with attractive ads and campaigns.
Repairs and Maintenance Strategies
If there’s one thing that every restaurant owner dreads, it’s the call that says, “The HVAC system is broken” or “The water main in the kitchen burst.” You can’t control when these things will happen, but you can control how quickly you respond to them. You should be keeping an eye on your systems and equipment for signs of wear and tear that need to be repaired. If you catch issues early enough, they might be small enough to repair quickly and inexpensively. If issues go unaddressed for too long, they can end up costing thousands or even tens of thousands of dollars. Make sure that you have a maintenance schedule for all of the systems in your restaurant.
It’s important to remember that the tips and strategies listed above are just that—tips and strategies. They are meant to help you get a general idea of how you can save money in your restaurant, but every business and situation is different. If you want to implement these tips in your restaurant, start by asking yourself the following questions: To truly save money, you have to make sure you’re focusing on the right areas. If you’re spending too much time worrying about inventory and not enough time on hiring the right staff, you’re not going to be successful. Now that you have read this guide, you should be more prepared to save money in your restaurant. These strategies will help you keep your costs low while still providing an excellent dining experience for your customers.