Making your restaurant more profitable will require a few tactics to increase your revenue while reducing your costs. Between food, staffing, and energy, there is typically quite a bit of waste in the restaurant industry. Here we take a look at five steps to a more profitable restaurant.
Negotiate With Suppliers
It is always a good idea to shop around for new vendors and negotiate with your current ones, especially if your purchase volume has increased. Reducing food costs is one of the best ways to improve your profit margins. You’ll also want to ask about bulk pricing and always be on the lookout for new ingredients that could spice up your menu. Let your current suppliers know you’re looking into alternatives, as that may motivate them to reduce their prices.
Reduce Food Waste
“According to the National Restaurant Association, on average, a restaurant loses four to 10 percent of food they purchased. And a report prepared on behalf of Champions 12.3 finds that for every $1 companies invested to reduce food loss and waste, they saved $14 in operating costs.” While some waste is unavoidable, there are ways to reduce it. Properly tracking inventory, using ingredients in multiple dishes, and practicing sustainable cooking methods can all cut down on your food waste, and ultimately your food cost.
Purchase Energy Efficient Equipment
Upgrading to energy star appliances can save your business a great deal of money. Not only that, the purchase of certain equipment will make you eligible for tax credits. Along with your kitchen equipment, you’ll want to look into replacing your HVAC system and your lighting with more energy-efficient options. Reducing operational costs is one of the best ways to increase your profit margins.
Install A New POS System
A comprehensive POS system that integrates with your accounting, inventory, and scheduling systems can make your business far more efficient. Tracking inventory in real-time can save on food waste and cost. Integrating with your accounting software ensures accurate financials and can save countless hours during tax time. Including your scheduling into the mix helps you to avoid over or understaffing, which can be pretty costly either way.
Use High End Ingredients
High-end ingredients will obviously come along with a higher price tag, but you can charge far more for them as well. Marketing your dishes containing organic, imported, or rare ingredients will help draw in customers, with many of them willing to fit the bill for something special. You’ll want to make sure these ingredients will appeal to your target market and keep a close eye on what is selling and what isn’t.
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