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How Can You Reduce Costs & Increase Your Restaurant Bottom Line?


So you start your business, everything is going well, a lot of customers are coming to your place (I congratulate you on this!), your food is good, everything is going according to the plan! But numbers are not going well… You cannot rely on the numbers you keep in your head all the time, and if you cannot do this, you won’t know what your costs are. I mean, we are not machines and even if you don’t have a food service industry you will know that having so many things to do will be impossible for one human or even two to handle correctly. Having a foodservice industry is knowing what everything costs to make sure you charge for every item on your menu fairly.

So, let’s get on the topic. If you want to make money doing what you love in the foodservice industry, you have to know the cost of EVERYTHING, and I mean it, EVERYTHING, and besides knowing the cost of everything, you have to know it by quantity. Those extra chocolate chips for your cookies? You should know how much they cost. So does the flour for the pasta for your lasagna too. – But I can do it manually? – I know you can! We all are capable, but it will take you a lot of time, and by wasting time you are falling behind to work on many other things. A menu costing software is going to make it easier, automatic, and consistent.

So, why is menu costing in general so important? We all know that in food service industries, you make cents in profits. You have to be positive that every cent possible is generated, also remember consistency equals sales. Just imagine Robert never missing your burger Friday night. Why is it? Because he is happy for what he gets not only on his belly but on his wallet. Every time that a customer comes to your restaurant or your foodservice industry it is because the dish is also going to be consistently good.

Recipe costing also helps you with some of the items that probably are going to have a higher cost of goods sold, but others will have such a low cost of goods sold.

The point of the software is to help you find your restaurant’s ideal food cost. Make clever decisions to ensure your profitability, such as what to charge, if you need to find less high-priced items, if an item needs to change, or even take out from the menu. You can also adjust items on your menu for a big impact on your bottom line. The next quote is real and “numbers don’t lie”.

If you’d like to learn more about how to calculate costs and precisely monitor them, request a free demo of our restaurant management software, DiningEdge Technology.


Author: Daniella

Daniella, the Marketing Director at DiningEdge. I am experienced & skilled in Marketing, Photography, Customer Satisfaction, and Graphic Design. Take your business to another level with DET and save a lot of money & time. Contact me to get started with your free demo.

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