How to bring down your restaurant costs

Even though the novel Coronavirus has changed the restaurant industry’s landscape, there are some things within the business that remain constant. Every novice and experienced restaurant knows that launching a restaurant business requires deep and wide pockets. However, the industry giant has the deserved title because they also know where to keep their costs low and capitalize on better ROI opportunities.

Investing in a restaurant management system is one such opportunity that enables restaurants, with businesses of different sizes, to shut money drains and hence, claim better profits. In this article, let’s see what a big difference a restaurant management software can make.

How to bring down your restaurant costs

How it works

A modern day, digital restaurant management software helps you perform a wide range of functions. Apart from billing, it helps you in reservations, supply chain management, running marketing campaigns and loyalty programs etc. Thus, it’s high time you replace your legacy billing software.

Key advantages of a restaurant management system

Let’s see how a restaurant management system will help you cut down unnecessary expenses.

1. Cut down on manual labor costs

Does the increasing labor costs burn a hole in your pocket? The results of a Zenput and Technomic survey conducted among 295 restaurant operators show that the top barrier for improving restaurant operations is the rising labor costs (48%). The major advantage of a cloud based restaurant management system is that it helps in cutting down manual efforts to a large extent.

Let’s take the example of your diners placing orders for food. In the conventional system, the server will note down the order details in a slip of paper. In turn, he walks towards the kitchen and communicates the order details to your kitchen staff. The chefs need to figure out the respective kitchen department to which the order belongs. There are no such hassles and wastage of time associated with inresto. The server takes the order from the customer on a tablet with the help of a digital menu. Immediately the order details get displayed on the screen in the kitchen (Kitchen Display System) in the kitchen for the chef to see. As soon as the food is ready to be served, the server is notified. In short, the software facilitates a drastic reduction in manual labor and time spent.

2. Eliminate employee inefficiencies

Monitor the performance of your staff members consistently. During rush times, some waiters may be quick enough to serve the dishes on time. However, there may be some who are not efficient enough. It’s high time to realize that they are eating away your revenues. The restaurant POS gives you reports that help you enormously in evaluating the performance of your staff members. Now compare the performance of various employees based on parameters such as login times, table turnaround times, etc. Speak to those staff members who are not up to the mark and work towards improving their performance. Conduct training sessions in areas where they are lacking.

3. Eliminate non-performing dishes

Some of the dishes may not find favor with your diners. Thus, you have to go through the order of food wastage later. The study conducted by Cornell University Food and Brand Lab reveals that on an average customers at restaurants leave 17% of their meals uneaten. With the software now you get valuable insights on the fast moving and non-performing dishes in your menu. Now you can focus on the most selling and profitable items. Also experience considerable cost savings by removing the least selling dishes from your menu.

Based on the insights, now waiters can recommend their diners their favorite dishes. Effective upselling also helps in boosting sales at your restaurant.

4. Curb employee theft

Inventory theft can cause major losses for your restaurant. As per the report by the National Restaurant Association, 75% of inventory shortages occur due to internal employee theft. However with a robust Supply chain management (SCM) software such as inresto SCM, now it’s pretty easy to deal with the problem of inventory theft. It helps you track all your inventory in real time. Now your supplies and raw materials are quite secure with the system. The timely alerts ensure that there is absolutely no scope for theft.

5. No more inventory wastage

It’s a cumbersome task for you to determine the optimal inventory level. Ordering in excess quantities leads to wastage of raw materials. At the same time, running short of stock affects your business adversely. Now, the SCM software notifies you whenever it’s time to place the fresh order of inventory. Once the order is placed, you will get real-time updates on the current stock levels. Thus you can get rid of the issues of inventory wastage forever. Also, it offers the feature of tracking your inventory levels live from any location, anytime.

The SCM software makes use of the concept of a central kitchen effectively. From the central kitchen, the purchase orders are sent to the respective vendors. It aids in achieving significant cost savings. The platform also enables optimum use of your kitchen resources and cuts down overall grocery costs and requirements. The feature of report generation offers you valuable insights on stock variance and pilferage.

6. Manage procurement effectively

Compare the various vendors in terms of price and quality standards. The software helps you easily perform this exercise. By carefully evaluating the prices, you can achieve significant money savings. Speak to your regular vendors and negotiate on the prices. Check whether it’s possible to offer a discount on total delivery costs if you pay a sum as an upfront annual fee. Also monitor the new suppliers entering the market. Whenever it’s time to renew your contract, take quotes from them and compare prices.

Parting Words

In the post-COVID world, adopting cost-cutting measures has become an imperative for restaurants worldwide. However, it is possible only by utilizing the never ending benefits offered by modern technology. By implementing a robust restaurant management software, now start experiencing a drastic reduction in your day to day expenses. The other added advantages include improved customer satisfaction and a significant increase in footfalls.

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