One of the most profitable ventures that rank top all over the world is the restaurant business. You can never go wrong with it. This, however, banks on the fact that the right principles are applied and proper systems are set in place in order to reap the desired profits.
So here are 5 ways to lower your restaurant’s expenses and boost its profits:
- Manage Your Inventory
It’s essential for every restaurant to have effective stock management and tracking system that monitors the daily stock intake and usage. Understanding how much food stock is actually used in comparison to what is actually purchased is vital in identifying the loopholes of wastage and misuse in the restaurant.
A good stock tracking system will help the restaurant set the ideal re-order levels for each stock item that’s needed. This way, unnecessary spend in terms of over-ordering and wasting or under-ordering and spending excessively on re-orders will be eliminated.
- Curb Internal Theft
One avenue that increases the expenses of a restaurant is that of internal theft done by the very staff who work in it. The absence of proper internal systems that monitor how many sales have been made and how much has been left behind is a major avenue that can promote theft which in turn results in unnecessary expenses being incurred in the long run.
It’s important to have an overseer whose main role is to track each sale made and ensure that it is accounted for as well as know what portions of food and other stock items have been left behind. All this should be tabulated in a daily report and counter-checked to ensure that nothing goes missing.
- Minimize Employee Turnover
Employee turnover can be termed as the number of employees that exit from an organization and are replaced with new ones in a specified period of time. Conducting the recruitment process can be costly not to mention the losses involved when a specific position in the restaurant is left vacant with no one to attend to it.
Now imagine having to do an undesired recruitment every three months. It will cost the restaurant a lot financially. To prevent this from happening, hire the right people, have proper work guidelines and remuneration systems. This way, you’ll minimize employee turnover.
- Minimize Wastage
Excessive production of meals is a source of wastage which in turn results in unnecessary expenses. It’s important for a restaurant to have the necessary tools in place that measure the portions that are needed. Plating more than is needed is also an element of wastage that should be controlled.
Ensure that you eliminate throwing away food and spilling, and reduce customer returns after making orders. This will help a great deal in minimizing the overall restaurant expenses.
- Get A Proper Reservation System
There are many restaurant reservation software out there that have been designed in a bid to attract more customers and increase sales. They’ve all made positive strides in meeting the need but still have loopholes within them. Some restaurants have incurred unnecessary expenses owing to the limited functionality of the reservation systems that they use.
This gap needs to be bridged. It’s highly necessary that a restaurant invests in a reservation system that is able to manage phone reservations, call ahead seating, and walk-in guests. Each restaurant that is seeking to save on costs should consider embracing the opentable alternative.