The Importance of Cutting Food Costs for Restaurant Business Owners
Successfully operating a small business presents many challenges. Restaurant owners especially, often find it difficult to profit within the first couple of years of opening. In addition to food knowledge, a restaurant owner must also be skilled in bookkeeping, marketing, and food costs. You could have the best menu in town, but with high food costs, still fail. If you reduce your food costs too much, customers will complain and are unlikely to return. Remember these cost savings food costs to improve your profitability.
Keep detailed records
Keeping detailed records is extremely important when it comes to the operation of small to medium sized businesses. If you do not keep accurate records, you can never fully understand your worth or how well you are doing. You could be losing money, without ever realizing it. Keeping detailed records also allows you to see your food costs. It allows you to make necessary changes to specific menu items to increase your profits. In addition to bookkeeping that includes pricing and income, you will also want to keep detailed records of how much each food item costs. That way, as you expand your menu and create new offerings, you can see how much they will cost you and how much you need to charge.
Scale your meat quality to your customer base
Are you offering a budget meal to local regulars? Giving local consumers high quality meat at a budget price can quickly close your business. Although you will have your customer?s appreciation, eventually you will find it difficult to keep your doors open. Additionally, if you are charging an increased price but only offering low quality meats, your customers will be unhappy and will not return. There needs to be a good balance between the quality of meat and the price that you are charging.
Purchase from local farmers
Purchasing your ingredients from a local farmer provides you with many benefits. First, you can now advertise that you purchase locally. Customers enjoy supporting local businesses and this could help to increase your customer base. Second, the quality of local meats tends to be higher than frozen grocery store products. Your customers will notice the difference and it can create a loyal customer following. Finally, supporting local farmers can create an entire network of support. Approximately 91% of beef farms and ranches in the U.S. are family owned. When you support local businesses, they are more likely to support your small business. Just look for local butchers in my area and work on creating lasting relationships and business deals with them.
Purchase bulk meat online
Depending on your following, you are likely to go through a lot of meat. Most restaurants have numerous items on the menu that contain different types of meats. Purchasing individually can get expensive and it can also be tough to keep a consistent taste throughout the menu. When you purchase bulk meat online, however, you can get discounts and keep a consistent menu. Also, when you buy meat online, you always have a steady delivery of meat coming. You don?t have to worry about running out of meat in the restaurant when you buy meat in bulk online.
Choose lower cost meat choices
While using a lower grade steak may not be the best option, you can interchange it with a high quality chicken product to cut food costs. The livestock big four are cows, chickens, pigs, and sheep. Change out these different livestock in your menu items and see which one gives you the best cost profitability. Chicken is always a safe option. In 2012, chicken surpassed beef as the number one meat choice in the U.S. Buying bulk meat online can include chicken bulk meat packages, beef packages, or even pork bulk meat online packages.
Small restaurant owners do not have very good success rates. A lot of this is due to poor bookkeeping and poor tracking of food costs. Fortunately, there are ways to cut down on food costs, without also cutting down on quality. Finding ways to reduce food costs, while also increasing quality, is the key to success for small restaurant owners. Continue reading here. Continue.