HomeManagementFood CostBasic Restaurant Management Tips That Will Help You Save Money

Basic Restaurant Management Tips That Will Help You Save Money

It might not seem so from the outside, but profit margins in the restaurant industry are very narrow. And so restaurateurs are always looking for ways to save money & increase their profit margins. More than 25-40% of costs are food costs. Add to it the labour costs, maintenance costs, marketing & branding costs, & the list goes on. But not many restaurateurs know that there is a way of restaurant management which helps reduce expenses & cut unnecessary costs!

We are talking about sustainable business practices! 

You might have heard or read about it. Sustainable business practices are all about executing everyday tasks with the intention of saving resources. In the large picture, these practices contribute to reducing mindless consumption of resources & obviously, saving a lot of money! 

If you are worried that reducing the usage of your restaurant resources would affect your brand’s image & customer experience, then we are sorry. But you are wrong! Many surveys & recent research prove that modern consumer is more careful about their consumption habits. We are shifting towards e-receipts, using recycled products, eating healthier & contributing to the environment much more than before!

Young consumers especially are active on the public forums & internet to educate & spread awareness about sustainable business practices. Even multi-billion dollar companies are joining this drive & have participated in the global drive. 

Now you know the scale of this!! 

Using sustainable business practices would, in fact, help you attract more conscious & wise customers! If you are wondering how you can onboard this drive to sustainable restaurant management & save on your hard-earned profits, then keep reading this blog!    

When we think of fine dining or high-end restaurants/ cafes we always think of all things exclusive. But this trend is well… going out of trend! Even multinational brands like Starbucks are moving towards sustainable business practices.

Restaurant management made effective with cost control.
These restaurant management tips are a must-follow for any restaurant owner looking to add more to their profits!

Restaurant Management Practices To Increase Profit Margins!

Adopting a sustainable strategy brings more to the plate than the obvious benefits to the environment. You can introduce sustainability to all aspects of your business. As a restaurant owner, you can have the power to incorporate these changes into your business.

So, what can be changed?

1. Cut Down on Add-ons

Giving customers the best experience is the aim of every restaurant owner & its staff. And the same applies to the customers who order through food ordering apps. But those customers are already in the comfort of their homes & have access to everything they might need!

To reduce restaurant expenses, you can reduce the number of add-ons that you provide such as ketchup sachets, cutlery, paper napkins, or other condiment packets. Not all customers want all the addons and it goes to waste regardless. As a solution, it’s better to ask the customer if they require any of it.

Simplify your food packaging to save on costs | restaurant management
Simplify your food packaging to save on costs. But do not be too stingy as it can affect your food packaging quality

2. Remove Excess Packaging Layers

Not all food products require multiple layers of packaging. Use as minimal layers of packaging as possible. Lesser layers can also mean smaller boxes. Cut down on plastic bags and foils and switch to paper bags. Revamp your packaging and shift from plastic to cardboard boxes or plant-based boxes.

RECOMMENDED READ  Profitable Restaurant Cost Management Secrets Revealed!

Read our blog on Do’s & Don’t’s of Food Packaging to know the aspects you should consider while food delivery packaging.

3. Use Digital Receipts

Save paper is not only saving trees but also saving money! On average, a restaurant spends more than ₹600 on paper rolls to print receipts & bills. This cost can be simplified by using e-receipts or digital receipts.

Digital receipts actually work two-fold. You can collect your customers’ mobile numbers & important dates for running CRM campaigns & promote your restaurant!

4. Decrease Water and Energy Usage

Power your restaurant with solar panels! India is a great place to use solar energy which is significantly cheaper in cost as compared to normal electricity. Example: Apart from rooftop solar power plants, larger hotels including ITC Grand Chola and The Gateway Hotel IT Expressway Chennai also utilize wind energy which helps them cut down on their electricity consumption.

Cutting down on these expenses would not only increase the profit margins but also position your restaurant brand as a unique & environment-friendly place to be!

Pro Tip: Training your restaurant in sustainable business practices is also an important part of restaurant management. Teach them to optimise the usage of every resource. Cross-train them so that you can save costs on recurring hiring & training of staff members!

Restaurant management starts with knowing which resource is essential & which can be let-go of
Restaurant management starts with knowing which resource is essential & which can be let-go of

5. Minimize Food Waste

There is a huge amount of food waste generated by the restaurant industry on a daily basis. India currently created around 67 million metric tons of food waste per annum. First, use your restaurant billing software to understand and analyse your current inventory and inventory wastage by reports. Furthermore, adopt methods such as donating excess food.

Pro Tip: NGOs collect food and distribute it every day. You could also set up your personal compost bins and grow a few of your supplies by yourself.

6. Introduce Vegan Food Items

A vegan diet involves cutting down on specifically animal and dairy products. Veganism is on a rise due to consumer awareness of the health consequences. Introducing innovative vegan dishes will attract a huge customer base to your restaurant.

Vegan based diet can help save costs | restaurant management
A vegan-based menu will also make your brand stand out from your competitors

To sum it up, sustainable dining has been a widespread movement across India. For restaurant owners, sustainability should cover all aspects of the business ranging from fair pricing to environmental conservation. Switching to sustainable practices is not only beneficial to the planet but also adds value to your restaurant.

Hope this blog was helpful. For more restaurant-industry-related updates follow us on Instagram.

Shaival Desai
Shaival Desaihttp://blogpetpooja.wordpress.com
Shaival is the Chief of Growth at Petpooja. Apart from jumping from one corridor conversation to another, you will always find curiously wandering about SaaS products, technology & food trends. Reach him at shaival.desai@petpooja.com.

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