Running a restaurant is a tough old gig. As the cost of living bites deeper into our wallets, the appetite for eating out is shrinking. With a potential dip in customers, restaurant owners need to learn how they can stretch their money, by cutting costs without compromising on quality customer service. No one wants to treat themselves to a meal out, only to feel like they’re being scraped for every last dollar in a cheap dining experience.
In this article, we’ll be providing you with advice on how to save behind the scenes, without your customers noticing. Read on to find out just how restaurant owners can cut costs, with these easy money-saving tips.
Bulk Buy Your Products
When stocking your restaurant, don’t see it as buying supplies for a bigger version of your house. Bulk buy latex gloves, toilet paper, napkins, cleaning cloths, and anything else you’re guaranteed to run through on an endless loop. Whilst your storage cupboard may seem like it’s stocked for a hospitality apocalypse at times, the savings will free up your budget in other areas.
You can find hospitality-focused retailers geared up for these kinds of mass purchases. Buying in bulk also means you’ll be more likely to afford higher quality items than if you were purchasing individually, for example – better quality cutlery, or linen napkins rather than paper ones.
Swap Staff Experience For Enthusiasm
In Australia, hourly award rates are dictated on a graded scale, judging an individual’s competence. A front-of-house team compiling decades of experience will guarantee a quality service but incur much higher costs. For teens looking for their first job, uni students trying to earn some cash, or young creatives looking for a side hustle, flexible hospitality work is appealing.
It’s still possible to provide expert customer service with one or two novices on each shift, particularly on busy Friday and Saturday nights when an extra pair of hands is invaluable. Start with less customer-facing roles, such as clearing empty plates and running food to tables, whilst they learn the ropes.
Whilst you should still always ensure a comfortable, confident team is helping you run the operation, the willingness to learn and energy of a less-experienced, younger demographic can help rejuvenate your floor, and your wallet.
Get Creative With Leftovers
Did you know, Australian restaurants are responsible for over 250,000 tonnes of food waste every year? Thanks to daily changing specials boards, mixed-up orders and miscommunications, food waste can end up costing your business a staggering amount, and it’s not great for the environment either. Reduce your spending on raw ingredients by turning your efforts to re-using what you’ve already got.
For example, if you have beef left over from a Sunday roast, put roast beef sandwiches on the specials menu for lunch on Monday. If you’re receiving fewer orders for a fish dish than you’d anticipated, use the stock for fish and chips, or another crowd-pleaser you know is going to sell.
And for duplicate meals, or those prepared in error, give them to your staff on their breaks. They deserve to eat good food just as much as your customers, and it will help them be better able to give genuine insight and opinion when asked about a dish.
Close On Your Quietest Days
With hospitality industries across the globe still bouncing back following the pandemic years, the decision to close your business during quiet weekdays has actually begun to make a lot of sense. Closing your restaurant a couple of days a week doesn’t signal a struggling business, it indicates a smart one. Rather than have a few tables and a lacklustre atmosphere on Mondays or Tuesdays, bunch those customers together on a different day. You’ll save money on staffing costs, and electricity bills, and potentially even generate more demand.
Alternatively, find out what days of the week your closest competitor restaurants are shut, and provide customers somewhere to dine out then.
A day closed is not a day off however. Use this downtime to track your finances, order your stock, and attend to the business aspects of running your restaurant without someone popping their head round the office door mid-service, panicking that they can’t find any more ketchup.
Use Set Menus For Public Holidays
On days when you know business will be busier than usual, stick to a set menu. This ensures a smoother flow, as your kitchen team will be preparing a limited variety of meals, and you can time your platings more easily, allowing for a higher turnover of tables or even set meal services.
Your guests are likely to be spending more on dates such as Mother’s Day, Valentine’s Day, or The Melbourne Cup, so reel them into your venue with an enticing menu, and most of the work is already done for you, leaving you less prone to dealing with negative reviews on Yelp. Your team will be working with a more centralised operation, creating less room for mistakes and wastage – and your guests will be spending more money, to make up for the higher staffing rates.
From the toilet paper you buy to the 5-course meal you and your head chef agonise over the details of, saving money in the short term for the sake of protecting your business in the long run does not have to mean making drastic cuts or changes to how you do things.
Making small adjustments is the best way to keep money available for the tough times when you really need it. So follow these tips, and keep running your business with the know-how and expertise you already have.
