• Jamie Reynolds

7 Ways to Cut Costs at Your Restaurant

Cutting costs at your restaurant can be a bit tricky. Spend too little on providing good customer experience, and your patrons may hop over to the next place. Invest too much on premium ingredients and supplies, and you could feel the pinch to your bottom line.

So, if you find you're spending too much, where can you turn to cut costs? Here are a few good places to take a look at first.

Minimizing labor costs

Consider using prepared ingredients

How much time does your staff spend on peeling, chopping, and preparing basic ingredients? By using ready-to-cook ingredients, you can significantly reduce labor costs and preparation times.

Invest in point-of-sale (POS) software

Automation helps provide a better experience for your sales staff and customers. You can also reduce hours of manual data gathering and analysis.

Minimize deliveries

Set a minimum purchase amount for deliveries. If possible, partner with third-party meal delivery services so your staff won’t have to worry about an extra task.

Cost-effective infrastructure

Reduce restroom furnishing costs

Instead of using expensive tiles for your restroom, ask your builder for cheaper alternatives. No need to splurge when it comes to designing your restroom.

Choose energy-efficient options

Take advantage of natural lighting whenever possible. Aim for subtler ambient lighting to provide a unique experience, while reducing energy costs.

Meal preparation

Portion control

Reduce the likelihood of serving too much by offering size and upgrade options on your menu.

Optimize menu options

The more predictable your customer orders are, the better. Avoid stocking (and spoiling) ingredients for food that never gets ordered by removing them from the menu.

Restaurant owners are passionate about their business. This passion can drive them to over-deliver at times and worry later about the financial consequences. To thrive, it is crucial to balance passion with profit. Strategic decision-making shouldn’t compromise quality and customer experience. But if you want to thrive in the long term, you need to find the balance between low costs and good customer experience.

Need more advice on cutting costs at your restaurant? Reach out to us for a free business evaluation.


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