1. Track Your Inventory
This first step towards gaining control over food and beverage costs is obvious, but we can’t miss mentioning it. Unless you know what you buy, when you buy it, when you use it, and how much you end up throwing away, you will never identify problem areas and you will never reduce your costs.
2. Take Control of Your Purchasing System
Ad hoc purchases won’t necessarily be from your preferred suppliers – or even consist of inventory you really need. At the least, you need a system in which orders are written, approved by management, and tracked through to the time the goods are requisitioned for use.
The ideal fixed order quantities and reorder quantities can be hard to calculate accurately, so the more accurate your inventory records are, the more easily you can refine your order volumes to limit waste.
3. Negotiate With your Suppliers
Once your purchasing system is well-organized, you’ll know how much you spend with various suppliers. That’s the total of your bargaining power. Now use it. Consider:
- Can you negotiate reduced costs if you commit to certain volumes in advance?
- Can you negotiate better prices based on your past volume of purchases?
- Can you negotiate better / more convenient payment terms during your off-season?
- Can you negotiate discounts?
4. Involve Your Staff
Your staff will be only too eager to help you to save on food and beverage costs. While recycling the salad is a no-no, you can ask them to help with a few basics. While these may differ from establishment to establishment, the one thing you can ask them is to look out for food waste and give suggestions. You might just get some really cool, out-the-box ideas!
5. Standardize Your Processes
In the course of our accounting bookkeeping services in Dubai, we repeatedly see the importance of standardizing processes. That applies to food preparation too. When you apply standardized processes, you get predictable results for a predictable cost. Your clients can be sure of the quality they’ll receive, and you can be certain of making a profit.
Reduce Costs, Increase Sales, Build Profits
As a CA firm in Dubai, most restaurateurs don’t see us as being part of their business. But those that do discover a competitive edge. When great food and sound financial management advice combine strong business are built, continuity is ensured, and restaurant owners are assured the profits they deserve.
Are you struggling to keep running costs under control? Do you need a stronger bottom line? Maybe it’s time you booked a discussion session with us.
