Ready to increase profits with creative cost-cutting? Guest Blogger and NMRA endorsed provider LAVU has some great tips for your restaurant:
1. Share the Facts with Employees
Without your entire team’s participation, any changes you make will be slow to take effect. Additionally, telling your employees without an explanation won’t inspire change. Instead, gather your team and share the facts. Include what the cost-effective changes are, and how much money they will save the business.
Knowing the numbers will help your team to visualize the impact of the changes, and take proactive steps, such as turning off unused equipment or finding ways to decrease food waste.
2. Train Your Staff
Once they know the facts related to your new cost-saving strategy, train your staff. How do you want recyclables separated? When should the lights be turned on? For instance, if the doors don’t open until noon, keep the lights turned off until your nearing opening hours.
3. Only Run a Full Dishwasher
Running a half-empty dishwasher throughout the day is akin to throwing dollars down the drain. Wait until the dishwashing machine is full before pressing “start,” and you can cut back on the water, soap, and energy costs.
4. Soak Dishes
Fill a sink with warm water and soak used plates instead of running hot water over them immediately. This will soften the food, and require less energy to clean them.
5. Take Advantage of Good Weather
Air conditioning is costly. When the weather allows for it, open the windows and reduce your air flow. When the weather requires AC, avoid turning it on high unless necessary. The perfect temperature depends on the size of the space, so test different temperatures to know the ideal range for your thermostat where everyone—guests and staff—are comfortable, and your energy bill is lower.
6. Control Portions
Portion control is a simple trick to reduce costs at your restaurant or bar. It’s a technique used by all chain restaurants. Customers will soon learn what to expect, and it will keep your costs low and manageable.
7. Reduce Free Offerings
If your servers automatically bring bread or chips to the table, cut the amount in half. You will lower costs and food waste. If a customer wants more, then you can bring more. The same goes for water. Instead of bringing glasses of water to the table, first ask your guests if they want a beverage like soda or wine that would bring in sales.
8. Get Energy-Efficient Light Bulbs
Changing to energy-efficient light bulbs is a fast and effective way of lowering your energy bill and being more eco-conscious. Not only do these light bulbs last years longer than regular bulbs, each one saves you $22 a year.
9. Trim Down Your Menu
Use your POS to track the sale of menu items to identify the worst sellers, and cut down your menu. This is particularly necessary if a poor-selling dish uses a costly ingredient that cannot be cross-utilized with other menu items. Replace it with an item that will be more popular, or just remove it entirely.
10. Optimize Your Inventory
Food waste is often the leading cost in restaurants and bars. Having an overstock of inventory might make you feel prepared, but it leads to food spoilage more often (by way of forgetting its existence, misplacing it, or theft). Instead, optimize your inventory. Use the same ingredients across the menu, and rework specials or leftovers into inventive dishes (like using stale bread for croutons).
11. Start Taking Inventory Daily
Daily inventory reduces the chances of employee theft and food waste.
12. Reduce Deliveries
Streamline your delivery system to reduce costs at your bar or restaurant. See if you can use the same supplier and limit your delivery windows to once or twice a week, opening an opportunity to negotiate for better prices.
13. Alternate Plasticware with Glassware
Using disposable tableware, cups, and utensils can be costlier than a one-time investment in washable silverware, plates, and glasses. With glassware, manpower is no longer required to order and stock disposable replenishments, and garbage waste is decreased.
14. Use Free or Low-Cost Online Marketing
15. Staff Your Employees Appropriately
Overstaffing or staffing the wrong people can waste money. Get to know the cycle of slow periods at your restaurant to avoid overstaffing. Then, identify the strengths of your employees and use them to your advantage.
16. Buy Used When Possible
Depending on the appliance, you might not need to buy a brand new one. Ask around for used equipment and see what’s available before spending top dollar.
17. Install Low-Flow Faucets and Toilets
This overhaul will save your restaurant between 20% and 40% on water usage.
18. Invest in energy-efficient appliances
This would be ideal for restaurants considering making renovations. Energy-efficient appliances can save your restaurant a great deal of money in the long run. Many states offer tax-credits and other incentives for restaurants that switch to energy-efficient appliances, so be sure to check out what is available in your state.
19. Be Savvy
Any decision you make for your business will cost money; be savvy in how you spend your resources. Always be realistic about how much things cost and stay within budget; this mentality will help you to keep costs low in every situation. Successful chef-owner Barbara Lynch even recommends understanding the P&L to be a cost-cutting expert.
20. Reward Employees
We save the most important point for last: Reward your employees for helping you meet cost-cutting goals. Decreasing costs is a team effort, and your staff’s diligence will be the reason that you save money. Acknowledge their effort and reward them for their dedication.
Need more information on LAVU and its programs and discounts for NMRA Members? Contact Jerry Chavez at 505-349-8899 or email him here.