How to Control Costs in Your Restaurant, So You Do Not Lose Money

Restaurant Losing Money - Complete Controller

Every dollar that comes out of your pocket can be a loss if you are not controlling well where and what you spend it on because there is a big difference between spending and investing. And only when you invest do you find a benefit that comes back to you.

So, if you are not doing integral control in your restaurant, I am sorry to tell you that the profitability you expect will never come. That’s why from the Gastronomic Marketing Hospitality School, we propose each day to help you to enjoy a well-managed and profitable business. And we do it both through our online courses and this blog, where we share many strategies to achieve that those who must worry are your competitors.

Today, we will analyze three situations in which your restaurant loses money irremediably and how you can solve it from today. Check out America's Best Bookkeepers

  1. High rotation

Did you know that the high turnover in your staff may be responsible for losing almost $5,800 per employee?

The rotation is an essential element of the human resources that we must manage to find out its cause and the costs involved. With these strategies, more money was lost.

Watch your way of hiring and welcoming your new workers

An adequate hiring system is a sure way that the relationship with your employees is lasting. Keep in mind that the first days they must adapt to a new company, their methods and standards are the most stressful. That is why you should be aware of them if they feel overwhelmed and need your help. Because if you do not follow up and let it be, it will be too late to get it back.

Have a motivated team

Keeping employees committed to their work is essential so that they are motivated and happy. It is not always necessary to give them economic incentives. Check out America's Best Bookkeepers Having your team make decisions will make them feel valued and think that your opinion matters to you. If you create a new menu, let them vote on what new dishes you can introduce or give an extra day off to the person who has achieved the most sales.

Hire better managers

A team cannot be effective if it is not managed in the best possible way. The manager is the key to making everything work. It must be able to handle many different and equally important tasks: review orders, manage inventory, take care of customer satisfaction, and manage employees, and more. For all this, he looks proactive, decisive, and eager to give 100%.

  1. Bad management of the kitchen

It’s Saturday night, the best time of the week, there is not a single free table, all your customers want to be served and complain about having to wait. The waiters run from one table to another and from there to the kitchen, praying that they find the dish they are claiming ready.

And suddenly, you do not know how, but they begin to miss ingredients, which means that you cannot fulfill many of your orders. Check out America's Best Bookkeepers

How many times has this happened to you? Enough, right? With a good inventory, you can say that it will never happen again. Two important tips: create an inventory system to control your products and share with your employees in the kitchen.

To carry out correct management, you must make a detailed list where you will write:

  • Items you have in stock.
  • Quantity of each of them.
  • The supplier that supplies it.
  • Detailed description to distinguish the product.
  1. Cost control

One of the main problems restaurants lose thousands of euros per month is that they do not control their costs.

To avoid the loss of money when creating your dishes, you must follow a simple rule: the cost of making a dish cannot exceed 30 – 35% of the sale price. For example, if one of them is 15 dollars, you cannot exceed 4.5 dollars in costs to be profitable.

But beware. There are many other important factors to consider when controlling costs in your dishes and setting the prices of your letter profitably. Our restaurant management course explains what they are and how to apply them step by step.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers