Five Simple Ways to Save on Your Restaurant’s Monthly Budget
Let’s face it, it’s easy to rack up bills and expenses. Each month little expenses add up to one big tab. The question is, how can you eliminate costs and reduce expenses?
Here are five simple ways to cut back on your restaurant budget and prevent waste.
1. Cut Down on Food Waste
Food waste is one of the leading reasons for skyrocketing restaurant expenses. Don’t let your business fall into a pattern of food waste.
There are a few simple tricks for cutting down on food waste in day to day operations.
Create a Prep List
One major way to cut down food waste is to create a kitchen prep list. Make sure your chefs have a one-page prep list outlining the ingredients needed for that day. Not using a prep list leads chefs to overestimate how much they need and to waste food.
Invest in a Digital Inventory
Estimating how much of a product you should order can be hard. The good news is, you can take the guesswork out of ordering by investing in an inventory software. Digital inventories help you calculate how much of a product you should order.
Digital inventories save you money in the long run by helping you cut expenses and be more efficient with your variable costs.
Reuse Aging Products
Got some stale bread? Are your bananas all overripe? Put them to good use!
You can use products that are past their prime to cook new foods. Use overripe bananas to bake banana bread, or crisp up the bread into house croutons!
2. Get Your Labor Expenses Under Control
Labor expenses are another huge source of restaurant expenditures. Getting your employee’s costs under control can cut costs for your business.
One way labor costs quickly add up is through turnover. On average, turnover costs restaurants $146,000 per year. Keeping track of your turnover costs with a cloud bookkeeping system gives your business a huge advantage in managing expenses.
Don’t let your business pay that bill. Keep your employees motivated and reward good workers.
3. Set a Budget by Bookkeeping
Did you know a lot of restaurant owners don’t have any budget in place? If you don’t have a budget setup, you’ll have a tough time tracking your expenses.
Create a budget — and stick to it. Having your budget in the back of your mind will help you plan for business costs and expenses throughout the month.
Bookkeeping software is great for this because it lets you track your expenses and costs and see where you went over budget on any given month. Get started with Arrow Cloud Bookkeeping now to effectively set your budget.
4. Go Digital
Today’s market is all about technology, and catering to them will help grow your business. What it will also do is reduce your costs!
Use the TVs in your restaurant to advertise to guests instead of printing out fliers to put on tables. Not only will this cut back on print costs, but studies have shown that 73% of diners want a digital dining experience.
A great way to eliminate paper waste? Get a digital bookkeeper! Cloud bookkeeping is highly effective and lets you digitally manage your money.
Reduce your paper expenses AND grow your market!
5. Advertise on Social Media to Reduce Fixed Costs
Advertising expenses are always increasing, and the restaurant business is no stranger to them. You can get more from your advertising budget by taking a new approach
One way you can increase your business but still save is to hire social media influencers. Influencers charge a low fee to market your product to their followers.
In turn, people see the influencer’s post and come check out your restaurant!
While it may seem tough to cut back on your monthly expenses, with a little work, it can be simple! Look for ways you can cut your bills and grow your business this month.
Most importantly, don’t leave cost reduction up to chance. Sit down and track expenses with a bookkeeping software that works. Give us a call and we’ll get you started!