How To Reduce Food Costs In Your Restaurant Business.

Business Strategies


14 Safe Tips On How To Reduce Food Costs In Your Restaurant Business.

Introduction.

Do you manage a restaurant and want to reduce food waste? If YES, here are the top 14 cost-saving tips on how to successfully reduce the cost of food in your restaurant.

Being in business means making profits and to make profits, you need to be prepared to do whatever you can to cut costs. No business will continue to make marginal profits unless it is ready to ensure that its operating cost is kept to a bare minimum.

In this article, we will look at practical tips that will help you reduce food costs in your restaurant, and if you can reduce the costs of food in your restaurant, you will continue to smile at the bank. So, if you are interested in reducing the cost of food in your restaurant business, here are 14 practical tips you can work with to reach your goal.

1. Buy only the foods and perishable ingredients you need at a time.

To avoid food waste, spoilage, and overdose, one of the things you need to do is buy only the foods and ingredients that you would need each time. This is especially important for foods and perishable ingredients.

 What good is buying perishable foods and ingredients more than necessary because they are cheap just to spoil because you don't need them immediately? So, if you can buy only the foods and ingredients you need at a time, you will be able to reduce the cost of food in your restaurant.

2. Maximize the use of your food ingredients and other resources.

Another tip needed to reduce the cost of food in your restaurant is to make sure you maximize the use of food, food ingredients, and other products. If you don't maximize the use of these items, you will end up throwing some necessary items in the trash.

3. Minimize the freebies you offer.

Minimize the freebies you offer in your restaurant another surefire way to reduce the cost of food in your restaurant and also avoid waste. In some restaurants, it is practical for them to serve free bread, chips, chicken sauce, and water to their customers.

 If you practice this in your restaurant, all you need to do to lower the cost of food in your restaurant is to minimize these freebies. The truth is, some people don't usually run out of these freebies, so it will lead to higher food waste and costs in your restaurant.

4. Replace plastic items with glass items.

Reducing the cost of food in your restaurant could be through a direct approach or an indirect approach, and one of the indirect approaches you can take is to replace plastic items with glass items. The truth is, using disposable tableware, cups, and other utensils can be expensive compared to a one-time investment in silverware, washable plates, and glasses. As a matter of fact, using glassware against plastic items will help, and garbage waste will decrease.

5. Apply portion control.

Applying portion control is one of the ways to reduce the cost of food in your restaurant. As a matter of fact, portion control is an important strategy that most restaurant operators leverage to reduce the cost of food. Think about it, if you don't portion control in your restaurant, you will notice that you will have more leftovers than restaurants that apply portion control.

6. Use energy-saving light bulbs.

The fact that the cost of food in a restaurant depends on many factors means that if you cut the cost of one or more things on your shopping list, it can help you reduce the cost of food in your restaurant. So one of the tips that can help you reduce the cost of food in your restaurant is to use low energy light bulbs which will ultimately help you cut down on some of your restaurant running costs.

7. Use energy-efficient appliances.

Did you know that energy-efficient appliances can actually save a lot of money in your restaurant in the long run? As a matter of fact, in the United States of America, several states offer tax credits and other incentives for restaurants to switch to devices energy efficient, so be sure to check what's available in your state.

 So, if you are looking for advice on how to reduce the cost of food in your restaurant, then you should make use of energy-efficient appliances such as refrigerators, freezers, electronics, air conditioners, and other kitchen gadgets.

8. Stop financial losses.

Stopping financial losses in your restaurant is another surefire way to reduce restaurant food costs. This is because if you successfully stop financial losses, you will have more money to spend and to save, so you will not have any pressure to increase the cost of food in your restaurant in the offer to meet the cost of running the restaurant and obviously make profits.

 Part of what you need to do to stop financial losses in your restaurant is to encourage cashless transactions. Encourage customers to pay via POS machines, mobile money, and via Internet transfer, etc. In this way, you will be able to account for the money generated in the restaurant per day.

9. Concentrate on preparing and selling the most requested food.

Another practical tip that you should consider if you are looking to reduce the cost of food in your restaurant is to focus more on the food that is in demand the most in your restaurant. For example, if rice and stew are the most requested foods in your restaurant. restaurant and beans and stew are the least demanded foods in your restaurant, you will pay yourself to prepare more rice and stew and fewer beans. 

If you do it differently, you will end up with more leftovers going into the bin which in turn will negatively impact the cost of food in your restaurant because the waste will reduce your profit margin. Focus on selling the menu items with the highest gross profit regardless of the cost of food.

10. Use the correct accounting software.

Another sure tip that you need if you want to reduce the cost of food in your restaurant is to use proper accounting software to keep track of your restaurant's income and expenses. The truth is, you are able to track your income and expenses, you will be able to notice the areas where you spend the most and with a little adjustment, you can balance things out and ultimately lower the cost of food in your restaurant. 

What proper accounting software will do for you is help you calculate and report on the cost of sales and labor costs each week. 

The truth is, your biggest and most volatile costs are food, drink, and labor costs - when these costs are added together they are called the restaurant's main cost and the most profitable restaurants in the industry know their main cost at the end of each week.

11/ Manage pre-order services.

If you run a standard restaurant that customers can afford to place special orders of what they want, then one of the ways to reduce the cost of food in the restaurant is to make sure you only prepare food based on order after payment.

 The truth is that even if you run a full or limited-service restaurant, having a POS or cash register system capable of sending orders to the kitchen or bar will help reduce your sales costs by at least 5 percent. As a matter of fact, by putting a system in place in your restaurant where orders must be placed before food and drinks can be prepared or served, accountability is guaranteed and of course, the opportunity to waste is reduced.

12. Buy fresh food directly from the Farmer's Market / Food Hub.

Buying fresh food and fruit directly from the farmer's market or food hub is a surefire way to get them at the cheapest prices you can get in and around your city. Think about it, if you buy fresh food and fruit directly from the farmer's market or food center, you will be able to reduce the cost of food in your restaurant.

 A food hub, as defined by the USDA, is “A centrally located facility with a business management structure that facilitates the aggregation, storage, processing, distribution and/or marketing of locally produced food / regional. Food hubs also fill gaps in the infrastructure of food systems, such as transportation, product storage, and product processing.

13. Purchase non-perishable foods and ingredients in large quantities.

To the extent that you do not plan to buy perishable foods and ingredients in large quantities, you need to purchase non-perishable foods and ingredients in large quantities; from wholesale stores. The drill is that the greater the amount of food purchased, the lower the unit cost and this is called scale economy.

For example, if you buy bags of rice or beans over buying a few measures, you will be able to save on costs and ultimately help you reduce the cost of food in your restaurant.

14. Scheduled maintenance program for devices and structures.

Finally, if you are serious about reducing the cost of food in your restaurant, then one of the tips you should consider is making sure you follow the scheduled maintenance of your appliances and facilities. Think about it, if you really want to avoid the unnecessary cost of replacing your appliances and other equipment, then you need to be willing to go through scheduled maintenance.



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