5 Top Ways You Can Increase Profits
Restaurateurs, are profits on the brain? Taking some time to consider your profit flow and cost controls will benefit you in the long run. If you’re looking to increase your profitability, you’re in luck! We have some cost-cutting suggestions to get you started:
- REWARD SYSTEM: Involve your employees by offering a reward for the best cost-saving idea. They may suggest something you’ve never thought of!
- GET COUNTING: The #1 key to controlling costs is managing your inventory. Count high-cost or high-usage items daily. A full inventory should be carried out weekly. Sound onerous? You can boost your business by setting up a system that makes taking inventory easy (see tip #3). Monitoring inventory can help you see when an ingredient is being wasted or spoiled because you don’t use enough of it. Use this opportunity to think about how you could use those ingredients in other ways.
- LABEL, LABEL, IF YOU’RE ABLE: You can cut food waste by organizing all of your food, including non-perishables. Label the shelves of your cooler, freezer and cupboards so everyone knows where an item belongs, when it arrived, and when it will expire. And always rotate your inventory! Moving items from right to left as you use them, and always using the leftmost product first, makes spoilage less likely.
- ENERGY HOGS: Think about upgrading to a high-efficiency water heater, which can lead to annual savings of $1000 a year or more. But not all your changes need to be big ones – the temperature at which you set your hot-water heater can make a big difference over time. And consider setting up a maintenance schedule to ensure cleaning tasks (cleaning your filters, vacuuming your refrigerator compressors) are happening routinely, which will keep appliances working efficiently for longer.
- LABOUR DAYS: Labour is one of your biggest costs, and a little thought about how to save can pay big dividends. If you forecast your busy and not-so-busy times, you can start your staff on staggered shifts where it makes sense. And when a crew is closing for the day, make sure they finish all their side duties before they leave. That means the incoming crew can get right to work.
Looking to share cost-saving ideas with other restaurateurs? You can discuss this and more on the Restaurants Canada member portal by becoming a member today! Contact our Membership team at 1-800-387-5649 or firstname.lastname@example.org.