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Overcoming High Food Costs 

    Home Blog Overcoming High Food Costs 
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    Overcoming High Food Costs 

    By Taren Martin | Blog | Comments are Closed | 29 January, 2024 | 0

    Rising costs at restaurants have hit consumers hard, causing many people to think twice before dining out if prices continue to soar. Thankfully, this year is looking like prices will not continue to increase, at  least not at the rate they did last year, so how can restaurants continue serving customers, gaining a profit, and not have massive price increases?  Here are some creative ways restaurants can see success even while food costs are high.

    Snacks

    We dedicated an entire blog to this a few weeks back because it is such a great way for restaurants to keep costs low and still serve trendy, creative foods. This is for basically any restaurant, as there are so many different options to choose from when it comes to snacks.  Drinkable snacks like smoothies and comfort snacks like loaded fries or pretzels are popular examples, however, now might not be the best time to start offering foods that demand new equipment from your restaurant or foods that require more ingredients to add to your inventory. Instead, keep overhead low by being creative with what you already serve and keep people coming in throughout the day for that little pick-me-up we all need.

    Technology

    Technology that allows you to improve service times, collect data and lets your employees work more efficiently is going to serve your business well.  When you know how much inventory to keep in stock and don’t lose money on wasted food, it’s a win for your restaurant. Collecting and reviewing labor data and forecasting sales allows you to know how many employees you need to have working during a particular day and time, saving valuable labor dollars.

      A kiosk for customers to order,  mobile apps, and accurate sales forecasting are just a few of the numerous ways that AI can help save your business money. 

    Cross Train Staff

    Every penny matters, so if you have high turnover or your staff is not well equipped, that could end up costing your restaurant a lot of money.  If you find quality employees and teach them many different aspects of the job, you might have to pay them a little more, but they will likely stick with you and can pick up slack if someone doesn’t show for a shift. 

    A few reminders to leave you with: 1. Review your expenses regularly so you know where you stand and can attend to problems quickly. 2. Do not hike your prices way up.  Yes, you might be feeling the stress of high food costs, but so are the customers.  A small increase occasionally is necessary, but a large jump will drive customers away and they will opt to eat at home.  Get creative with ways to promote items and areas you can save and you will see your restaurant make strides towards larger profit margins. 

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