If you have a few years under your belt in the restaurant business, you already know how tight margins have become, falling from double-digit averages at the turn of the century. As a result, many fantastic operators have had to close their doors as their fixed costs like rent and labour have crunched down on the industry.

In this guide, we're laying out some fast and simple tips to help you control and offset your fixed costs, keeping your margins high and your mind at ease.

In this article:

• Understanding and identifying overhead costs
• Implementing effective management strategies
• Leveraging innovative revenue-boosting strategies
• Utilising First Table

 

 

The first step is a thorough understanding and identification of all overhead costs. These are the essential, non-food-related expenses vital for your restaurant's operation. Once you have a good grasp on these costs, you'll know how much revenue your restaurant will need to generate. 

 

Once you've got a handle on all overhead costs, its time to look into employing strategic methods to monitor and manage these. Consider some of the following methods:

• Regular financial monitoring: Consistently track and analyse all expenses to identify cost reduction areas.
• Supplier negotiations: Work towards better terms, like bulk purchase discounts and loyalty deals, to cut down operational costs.
• Optimise staff scheduling: Align staff schedules with customer demand for labor efficiency.
• Technology adoption: Implement advanced POS systems to streamline operations and minimise errors.
• Energy-efficient appliances: Use energy-saving appliances and initiatives to reduce expenses.
• Food waste control: Implement strict systems for controlling food waste, further lowering operational costs.

 

Innovative, yet simple, strategies can play a pivotal role in balancing out overhead costs. Consider transform your menu regularly, introducing themed dishes and seasonal delights, to captivate a broader audience and justify premium pricing. Focus on staff training, emphasising upselling techniques and internal incentives, which not only boost revenue but also highlight how to deliver exceptional service.

 

 

Promoting your restaurant on First Table, can be a game-changer for driving additional revenue during off-peak times. This innovative solution helps to attract diners during typically slower periods, turning potential low-profit hours into profitable ones. By using First Table, restaurants can help offset fixed overhead costs, making more efficient use of their resources and maximising profits.

 

 

By following this simple four-step guide, restaurant owners can gain control over their overhead costs and enhance profitability. Understanding and managing these costs, coupled with using tools like First Table to increase revenue during quieter periods, positions restaurants for long-term success in a competitive market.