Owning a restaurant is not for the weak of heart. There are plenty of challenges that come along with it, and one of those is financial. One of the most common reasons for restaurants going under is failing to anticipate costs. There are all sorts of expenses that come along with running a restaurant of your own, from buying necessary equipment, to paying your staff, so it’s important that you cut back wherever possible. If you currently own a restaurant, then take a look at some of the costs you should scale back on in your budget.
Only Order What You Need
A common newbie mistake is over-ordering ingredients. Unfortunately, this is a quick way to dwindle your resources. Only buy what you need in order to operate properly. Anything more risks losing money on your investment, and can lead to significant spoilage. A small cushion of ingredients is always recommended, in case you get a rush, however, anything more is too risky on your wallet.
Track Your Numbers
Regardless of what kind of industry you are in, it’s important that you track your sales. If you notice that certain items on your menu are performing better than others, then consider ditching the dishes that aren’t selling at all. Each time that you keep an item on the menu that isn’t selling well, you’re wasting money having to buy ingredients for it. So, keep track of what your best performing menu items are, and double down on what you’re best at.
Negotiate With Vendors
Don’t assume that whatever price a vendor offers is the best rate. It’s perfectly acceptable to negotiate a better price to keep your costs down. Reconsider looking for someone more affordable if your current vendor isn’t willing to budge. With a little effort on your part and a little research, you can usually find better deals out there.
Keep an Eye On Your Trash
A lot of new restaurant owners fail to keep a close eye on what’s going on in their kitchen. It’s a good idea to keep looking at your trash cans to ensure you’re not throwing too much away. Staff members may be wasting more than you think, so it’s critical that you keep an eye on what’s going on in the bins. If you notice that your staff is throwing out way too many things, it’s time to have a staff meeting and discuss reducing the waste.
Measure Your Drinks
If your restaurant has a bar, then you should ensure that you’re carefully measuring the alcohol in it. A heavy-handed bartender could be costing your restaurant thousands a year. Make sure that everyone is measuring properly to ensure you’re not losing too much profit.