Every restaurant aims to do two things especially well, the first is to provide their customers with a quality product or service, and the second is to keep costs as low. While it sounds like these two goals may be at odds with each other, there are ways to control and lower your costs without sacrificing the quality of your product or service. We’re going to dive into a few of the ways that you can do just this.
Effective Inventory Management
A major piece of controlling your costs revolves around effective inventory management. This goes beyond simply counting your inventory and ensuring you have the right amount on hand. Have you not only costed out your recipes, but also kept those costs up-to-date as you have more stock arriving? Have you been able to track waste to the source? Do you know if your actual usage is close to you theoretical? These are all critical elements to your inventory management that could be costing you tens of thousands of dollars in profit each year, each month, or even each week depending on the size of your organization. While this may appear to be a lot of work, utilizing restaurant inventory management software, like Optimum Control, allows the calculations to be automated, and you simply have to enter your numbers. Your savings are twofold to the effect of saving on inventory and labor.
Joining a GPO
If you’re asking “What’s a GPO? And why should I join one?”, then you’ve been missing out on earning potential rebates for your purchases, and better pricing. Yes, that’s right, you get money back for simply placing orders through participating suppliers on certain products. GPOs, or Group Purchasing Organizations, work by leveraging the buying power of their members to secure rebates and more beneficial contracts with suppliers. If you work with specific suppliers, and are loyal to them, you may be able to find a GPO with that supplier in their network. Additionally, certain GPOs may have regionally specific programs. For example, MyDiningAlliance services organizations in the United States, while Alliance Purchasing services Canadian organizations, and it can even go beyond that for how specific a GPO is. Buyers Edge Platform has programs for food and non-food products, and has technology solutions to assist with your restaurant inventory management.
Menu management loops back to your restaurant’s inventory management. By using restaurant inventory control software, you should be able to identify which items are making you money, and which are simply costing you. The items costing you could be reworked by looking into your recipe costing, and seeing if changes can be made to either the recipe (without affecting the quality), or finding new suppliers that can provide the ingredients at a more affordable cost. If neither of these can be done effectively, your only course of action may be to remove the item from the menu. Not only will this lower your costs, but it may also provide you with more storage space for other ingredients.
Track Your Waste
While you may have everything else under control, if you’re not tracking your waste, you could be increasing your food costing by a couple of percentage points, which can lead to thousands of dollars in lost profits. By tracking your waste in your restaurant inventory control software, you’ll be able to find the source of your waste, and change your operations to ensure those losses aren’t continuing in the future.
As you can see, there are numerous ways that you can cut your costs while maintaining. If you’re interesting in learning more about Optimum Control restaurant inventory control software, or GPOs in your region, contact us.