In today’s world, one of the most competitive business sectors in America is the restaurant market. If business owners want to expand their business and increase profits, on top of providing quality services in addition to a memorable dining experience, they will have to master management tactics as well. Let’s take a look at 6 strategies restaurants can incorporate to reduce expenses and increase profits.
1) Minimize Food Waste
We have all thrown away food at some points. This is why America is listed as being the number 1 country that generates food waste. In fact, statistics show that we throw away billions of dollars worth of food every year. But, many restaurants are just as guilty as people when it comes to generating food waste. One strategy businesses can incorporate to increase their profit margin is to minimize food waste. An ideal way to tackle this issue would be to use a food waste tracker. These devices come equipped with sensors that are able to measure food and cameras that lets you see what’s being tossed out. In addition to that, restaurants that end the day with a surplus of nonessential food can donate them to food banks to get a tax break.
2) Energy Efficient Appliances
This would be an ideal option for restaurants that are in the process of being renovated. Energy efficient appliances can help to lower electricity expenses. Besides that, various states provide tax credits and other tax incentives for companies that make the switch to energy efficient equipment.
3) Utilize Professional Marketing Services
One of the most effective ways to increase profits is to grow your audience. There’s a vast amount of marketing techniques available that can help small and large restaurants expand and garner the attention of people who have never visited their establishment before. For instance, social media marketing provides restaurants with an opportunity to increase their patronage by interacting with customers and people who may have been interested in their company. Meanwhile, other platforms such as Google Ads, can give restaurants the ability to spread brand awareness towards a highly targeted audience.
4) Scheduling Software
Whenever a scheduling conflict causes a business to operate with a lower than necessary amount of employees, it can cost the restaurant thousands of dollars over the course of a year. Being short staffed can lead to a permanent loss of customers as a result of long waiting times. Statistics show that restaurants were able to lower their operating expense by 2% by using a restaurant scheduling software.
5) Portion control
Portion control is a simple concept that can drastically reduce your expenses. In fact, it’s a concept that is implemented by all major chain restaurants. Portion control can help to keep food related expenses low and manageable. In today’s world consumers are gravitating towards healthier eating, so smaller sized portions could actually attract health conscious customers. When it comes to portion control, some things to consider, include:
- Smaller sized meals and sides.
- Offer small lunchtime options only.
- Reduce the size of kids meal.
6) Share Your Concern With Your Employees
One of the most effective things you can do is to bring your concern to the attention of your employees. Regardless of the cost saving techniques that you implement, without the participation of your team, changes will take forever to have an effect. Restaurant owners should gather their team and provide them with the facts about their efforts to reduce operating expenses and increase profits. In a situation like this, you could tell them about the cost effective changes that will be happening and how they can help to lower expenses such as turning off lights and appliances that aren’t being used.