These 5 steps will show you that cutting your restaurant’s operation cost saves money and resources.

Throwing food away is like stealing from the table of the poor but what’s a restaurant owner to do when all he or she knows is to make and spend money.

Employ Smart and Reliable Workers

Employing the latest technology into your business allows you to do more especially cutting your restaurant’s operation cost. For example, you can order and pay for your food before getting to the restaurant reduces the need for servers, thereby lowering labor costs. Software like Plate IQ can be used to get customer reviews and you can use that to plan.

Set a Budget Aids Cutting Your Restaurant’s

While cutting your restaurant’s operation cost, don’t forget to set realistic goals that will help you make wise spending decisions. Distinguish between your needs and your wants and identify your income and expenses. Put your goals into action and do not forget to watch out for seasonal expenses.

Trim Your Food Waste

Create a kitchen prep list to tell you how many ingredients you’ll need per day and without one, cooks tend to prepare extra food which leads to waste. Learn to reuse usable products like stale bread, overripe, and strawberries. Lastly, always apply the First In First Out method when opening package products or you end up throwing away goods because they are past their expiry date.

Run the Food Cost Formula on Every Item on the Menu

The food cost formula is the total cost of ingredients per menu item price. Calculating this can be stressful but it is very necessary for cutting your restaurant’s operations cost. It will let you know the amount you spend on ingredients and compare them with their price. If your food cost percentage is over 30%, you should consider raising the price or using less expensive ingredients.

                   FOOD PERCENTAGE = TOTAL COST OF INGREDIENTS / MENU ITEM PRICE

Use Local Ingredients While Cutting Your Restaurant’s Operation Cost

The cost of local ingredients has a very high advantage to profit. Produce straight from the farm to the kitchen tastes a lot better and costs even lesser. This is one very effective way of cutting your restaurant’s costs.

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