Running a successful restaurant involves juggling numerous tasks daily, from managing inventory and staff to ensuring a seamless customer experience. However, with rising operational costs and increasing competition, it’s essential for restaurants to optimise their processes to remain profitable. Fortunately, there are a range of strategies and tools that can help streamline operations, boost efficiency, and reduce unnecessary costs. In this blog, we’ll explore some operational tips and tools that can help restaurants optimise processes and reduce costs.
Streamline Inventory Management with Technology
One of the most significant costs in a restaurant is food waste. Without proper inventory management, ingredients can spoil, leading to wasted money and lost profit. Implementing an inventory management system can help you keep track of stock levels in real time, optimise ordering, and reduce waste.
Tools to Consider:
- MarketMan: An intuitive inventory management system that tracks stock usage and helps with supplier ordering. MarketMan also provides detailed analytics, allowing restaurant owners to spot waste patterns and reduce over-ordering.
- BlueCart: A cloud-based solution designed to streamline inventory, purchasing, and supplier relationships. BlueCart automates reordering, saving time and reducing the risk of stockouts or overstocking.
By adopting these tools, you can ensure you're only purchasing what you need, improving your stock turnover, and minimising waste.
Implement a POS System for Better Sales Tracking
A modern POS (Point of Sale) system does more than just process transactions. It can provide invaluable insights into sales trends, popular menu items, and staff performance. By using a POS system, you can monitor sales data, track peak hours, and identify high-performing menu items, allowing you to make smarter decisions about your menu and staffing.
Tools to Consider:
- Square: A user-friendly POS system that allows restaurants to track sales, manage inventory, and analyse customer preferences. Square also integrates with other tools like payroll software, making it easy to streamline multiple operations.
- Toast: Designed specifically for restaurants, Toast helps manage orders, track sales data, and manage inventory. It also provides customer relationship management (CRM) tools that help build customer loyalty.
By using a POS system, restaurant owners can not only optimise their sales processes but also identify opportunities to improve operations and reduce costs.
Efficient Staffing with Scheduling Tools
Labour costs often make up a large portion of a restaurant’s expenses, and inefficient staff scheduling can contribute to higher costs. Implementing a scheduling system that optimises labour based on customer traffic patterns and predicted sales can reduce unnecessary overtime and avoid under-staffing.
Tools to Consider:
- 7shifts: A scheduling tool specifically for the restaurant industry, 7shifts helps managers create optimal schedules based on past sales data and forecasted traffic. It also integrates with POS systems to help managers track hours worked and labour costs.
- Deputy: This tool simplifies scheduling and time tracking, helping you manage labour costs efficiently. Deputy also allows employees to swap shifts easily, reducing last-minute scheduling problems.
By using these scheduling tools, you can optimise your workforce, ensuring that you’re neither overstaffed nor understaffed, which ultimately reduces costs.
Reduce Energy Costs with Smart Solutions
Energy costs are another significant expense for restaurants, especially when running large ovens, fridges, and other equipment. Implementing energy-saving solutions and equipment can reduce utility bills and improve your restaurant’s bottom line.
Tips to Reduce Energy Costs:
- LED lighting: Switch to energy-efficient LED lighting, which uses significantly less energy and lasts longer than traditional bulbs.
- Energy-efficient kitchen equipment: Invest in Energy Star-rated appliances, such as ovens, refrigerators, and dishwashers, which consume less power and water.
- Smart thermostats: Use programmable thermostats to optimise heating and cooling. You can set them to reduce energy usage during off-peak hours when the restaurant is closed or during low-traffic times.
By implementing these energy-saving strategies, you’ll not only reduce your utility costs but also contribute to a more sustainable restaurant operation.
Use Cloud-Based Accounting and Financial Management Tools
Managing restaurant finances can be complex, but cloud-based accounting tools simplify the process by automating many aspects of financial management. These tools allow restaurant owners to track expenses, manage cash flow, and generate financial reports from anywhere.
Tools to Consider:
- Xero: A cloud-based accounting platform that offers simple financial management tools for restaurants. Xero tracks expenses, generates invoices, and helps with tax compliance.
- QuickBooks: A well-known accounting tool that helps track income and expenses, manage payroll, and generate financial reports. QuickBooks also integrates with POS and inventory systems to streamline accounting processes.
With these tools, restaurant owners can maintain a clear overview of their financial situation, making it easier to identify areas where costs can be reduced.
Optimise Menu Design for Profitability
Your menu is not only a reflection of your restaurant’s brand but also one of the most powerful tools you have for controlling costs. Menu engineering, which involves analysing the profitability and popularity of each item, can help you optimise your offerings, remove low-performing dishes, and focus on high-margin items.
Tips for Menu Optimisation:
- Analyse food costs: Regularly assess the cost of ingredients for each dish and ensure that your pricing reflects the value of the ingredients and preparation time.
- Simplify the menu: A smaller, well-curated menu often leads to better efficiency in the kitchen, reduces waste, and allows you to focus on your most popular and profitable dishes.
- Highlight high-margin items: Place your most profitable items in prime spots on the menu to encourage upselling.
By taking a closer look at your menu, you can improve profitability and reduce costs associated with preparation and waste.
Adopt Online Ordering and Delivery Solutions
As consumer behaviour continues to shift towards convenience, having an efficient online ordering and delivery system is crucial for maximising sales while reducing overhead costs. By using third-party platforms or developing your own online ordering system, you can reach a wider audience and reduce the costs of having to run a full dine-in service.
Tools to Consider:
- Deliveroo and Uber Eats: These platforms connect your restaurant to a larger customer base, offering delivery and takeout services that can boost sales.
- Square for Restaurants: Square’s online ordering system integrates with your POS system, allowing you to streamline orders and reduce errors.
By offering convenient online ordering and delivery options, you can increase sales while keeping costs under control by optimising kitchen operations.
Conclusion
Optimising restaurant operations is an ongoing process that requires a strategic approach and the right tools. By focusing on inventory management, efficient staffing, reducing energy consumption, and streamlining financial processes, you can significantly cut costs without compromising quality. Implementing the right technology and making data-driven decisions will not only improve your restaurant’s bottom line but also enhance the customer experience. By adopting these operational tips and tools, you’ll be well on your way to running a more efficient, cost-effective, and profitable restaurant.
