Get lean, get smart and get motivated! No, we aren’t talking about trimming your waistline—we’re talking about cutting costs associated with running your restaurant. While we don’t suggest implementing anything that could jeopardize food or service quality, there are four things you can do right away to reduce restaurant costs. Implement these 4 money saving tips in your restaurant, and watch the savings accrue!
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4 Money Saving Tips for Restaurants
- Negotiate with Local Vendors.
There are many advantages of purchasing local ingredients. One of them is that you have more opportunities to negotiate. It’s much easier to negotiate pricing of goods if you’ve built a personal relationship with your local vendor. If you can place the majority of your orders with one vendor, you’ve got quite the bargaining tool at your disposal. Just make sure to choose your main vendor wisely.
- Serve What’s in Season.
Buying locally-sourced products is a great way to provide high-quality food while also supporting the community you’re a part of – but that’s not the only perk. Purchasing local products means you have the opportunity to serve meals based on what’s available in close proximity, driving down food costs. Take advantage of the different regional fruits, vegetables, and game available in your area.
- Reduce Food Waste.
Your kitchen staff should work together to reduce food waste. Begin by completing a food waste audit. Appoint a member of your kitchen staff to monitor inventory and make adjustments as necessary. Do you really need that much food on hand at one time? In addition, plan your menu around ingredients that are readily available and that can be incorporated into multiple dishes. Always shop with a plan in mind for each dish. This is one area restaurants stand the most money to gain.
- Spend Adequate Time on Menu Pricing.
Don’t rush this process or it could cost you. Your menu pricing should be well thought out and calculated based on your ideal food cost percentage divided by your raw food cost. You can then use your ideal gross profit margin to determine the price point of each dish in order to reach your financial goals. Whether you’re operating a busy cafe or upscale restaurant, knowing how to price a menu item is critical. Sales are crucial to whether or not your restaurant turns a profit.
Try putting some – or all – of these money saving tricks into action at your restaurant. You may be surprised at how quickly savings begin adding up.
Our restaurant insurance program is tailored to the unique needs of your business. Your local Society agent will help you to determine the restaurant insurance coverage necessary to protect your livelihood. To learn more about how Society Insurance can help your restaurant grow and mitigate risk, consult with a Society agent in your area.