Close this search box.

The Best Ways to Reduce Your Restaurant Costs

Adviser working with a restaurant owner

Restaurant owners face many challenges, including cost management. To ensure the ongoing success of your business, it’s essential to implement effective strategies that can reduce expenses while also maintaining a high level of quality. 

Here are the best ways to reduce your restaurant’s costs without compromising the customer experience:

Reduce Food Waste
Food waste is a significant part of any restaurant’s costs. To reduce these losses, analyze your inventory and adjust orders according to actual needs. Use appropriate preservation techniques to extend the shelf life of products and set up menus that make optimal use of ingredients. You may also consider offering adjusted portions to limit waste and associated costs. There are several inventory software solutions, such as Restock and Peacemeal that can help you evaluate freight costs, monitor losses, and ensure quantities are respected.

Optimize Energy Usage
Energy costs can quickly add up in a restaurant. You can adopt eco-friendly practices by turning off lights and electrical appliances when not in use. You can also make the effort to reduce water consumption, improve insulation, and invest in energy-efficient equipment. There are several grants available that can help you finance efficient, low-energy-consuming materials. 

Manage Staff Efficiently
Human Resources management is essential to reduce your restaurant’s costs. You can provide training to improve the team’s productivity, efficiency, and versatility. For example, if your hostess knows how to support bar service and your line cook can jump in and serve as a busboy, staff scheduling can be optimized. You will avoid overtime and can provide employees with a better salary and more time off, all of which leads to employee retention.

Negotiate with Your Suppliers
Building strong relationships with your suppliers can help you get better prices and reduce purchasing costs. Do not hesitate to regularly renegotiate rates and look for alternatives to benefit from the best offers. Take advantage of volume discounts, promotions, and seasonal products to save money.

Optimize Your Menu
A well-designed menu can help reduce costs too. Analyze the most popular and profitable dishes and remove those that perform poorly. Choose versatile ingredients that can be used in multiple recipes to reduce purchase costs and waste. Also, you may want to consider highlighting high-margin dishes to increase revenue. 

Using technology to improve efficiency and simplify processes is another way to reduce costs. There are inventory management systems to track supplies and help you avoid stock-outs or surpluses. You can adopt a point-of-sale (POS) system to optimize orders, collect payments, and analyze sales reports quickly. Also consider an online reservation system like Libro to increase your restaurant’s visibility and attract more customers. Many technology solutions integrate and work together, which will minimize errors and save you hours of extra work.

Offer a Loyalty Program
A loyalty program can help you retain your best customers without significantly increasing costs. You can offer attractive rewards such as discounts or free dessert to encourage them to visit more frequently. Loyal customers are also more likely to recommend your restaurant and post a good online review, which can generate new business without spending marketing dollars. Remember, loyal members typically spend more, which also helps your bottom line. 

By implementing these seven strategies, you will be able to reduce your restaurant’s costs without compromising a quality customer experience. You can optimize expenses, improve the profitability of your business, and ensure its long-term sustainability. If you’re interested in even more tips to improve the daily operations at your restaurant, click here.

Contributing author: Kim Charlebois, president/founder/coach at RestoCoaching
514-295-2195 |


Recent Posts