As one of the biggest expenses in any restaurant, overseeing and managing food costs is a must. As food costs are consistently increasing, consider the following strategies to minimize expenses and protect your bottom line. Even more importantly, protect your operation with a Indianapolis Restaurant Insurance program.
When everyday items such as beef and egg costs increase, modify your menu to feature affordable quality. Consider using less expensive cuts of beef, cheaper alternatives to fish, and using more of the animal in a dish rather than just the filets. This will help to boost profits and provide less expensive meals to your patrons.
Too often, restaurants pay more than needed for produce because they’re not selecting the most appropriate variety and grade for their use, says Consolidated Concept’s COO Bruce Reinstein. For example, a restaurant might automatically specify No. 1 grade avocados. “But the real difference between No. 1 and No. 2 grade is how the avocado looks on the outside; it has no effect on the inside,” he says. “If you buy No. 2 grade, you’re going to save money and still have the quality,” he explains to the National Restaurant Association.
Compare apples to apples.
When bidding on items, ensure that different vendors are offering the exact same items. Just because someone is offering some produce or staple items for a cheaper price doesn’t necessarily mean it’s the best deal.
Get ready to prep.
Determine which items are better purchased and which ones are better made in house. Further, while buying precut meats and vegetables might be convenient, you’ll pay a pretty penny for them. Conduct a make versus buy analysis to determine which items are better made in house versus purchased from a vendor.
Be aware of hidden costs.
Freight costs and other miscellaneous fees can take a chunk out of your budget, so negotiate these up front. Evaluate your invoices to ensure you’re not paying extra fees that might be subtly tacked on.
About Walker & Associates
If you’re contemplating expanding your restaurant’s services, do your homework to ensure a lucrative venture and loyal following. Contact us online at Walker & Associates Insurance or by phone at (888) 760-7292 for your insurance needs. We can explain your coverage options and how much coverage will cost.