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How to reduce your restaurant operating costs and expenses

Updated: May 18

The restaurant business is one of the demanding industries, but at the same time running and managing it is also challenging. Luck, labour, and chance- of course, it takes blood and sweat to operate the restaurant in the area. Why so? With increased social media promotion competition has also increased. Making a good margin and profit is not an easy task, but ultimately it is not impossible. So, whatever the challenge, leap from the front and beat the heat like a pro.

How to reduce your restaurant operating costs

There are two ways in which we can think of making a profit- one is to increase the menu item price and the second is to reduce the operating costs and expenses. Of course, the customer will never like the former idea to bear an additional charge; rather, being a smart business owner, you must focus on the latter. You should take some proactive measures to reduce this unnecessary cost. Let’s learn about them in detail:

  • Inventory management: The first and foremost thing we need to consider is the stock and the inventory. Always remember that better inventory management allows you to keep an eye on and control the overall input, process, and output. It will help you provide a better insight into the stock and avoid food wastage. So, optimizing the demand-supply chain with resources available is the first condition to finance management reducing extra cost.

  • Better employee management: Employees are called assets. What does it mean? It simply means that one professional employee can make a difference and build rapport with your business. So, isn’t training them a good idea, is it? A professional staff helps your customer in every manner, from finding the right menu to solve their query to using the word of wisdom with polite behavior.

  • Say a big no to food wastages: According to a survey, approximately 4-11% of food is wasted before they reach the consumer. This is a significant loss and you can avoid this by serving the menu around your stock and inventory. Always remember that food saved is money saved.

  • Strict regular audit: A regular audit can help you keep an eye on the total input vs output and expanse vs profit. You can schedule a daily, weekly, or monthly audit for 15-30 minutes to cross-check the measures and outcomes.

  • Marketing with modern technology: Days are gone when we used to waste lakhs of rupees over billboard advertisements. Now no need to print the expansive pamphlets; instead hire a good digital marketer to promote on different channels like Facebook, YouTube, and Instagram. It is cheap and more effective.

  • POS software: Technology has made lives easier. Always remember that humans can make mistakes but machines can’t. Additionally, managing with POS software is a smarter choice than relying on hiring multiple employees. There are so many restaurant POS system available in the market. You should choose the one which is easy-to-use, affordable, and offers better output. IVEPOS is an Android POS (point-of-sale) software crafted for your restaurant by Intuition Systems. It offers functionality like inventory management, CRM, customer loyalty and sales analytics in real-time, engaging with customers and increasing your revenue.


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