5 Ways Restaurants Can Control Food Costs

2.  Trimming food waste is another key item to controlling costs. 

Green Restaurant Association reported that in one year a single restaurant can produce 25,000 to 75,000 pounds of food waste. What's the easiest way to eliminate that waste? 

• Use the foods nearing their expiration date first  

• Only prep the amount of food you need for that day’s expected traffic (lists help keep the kitchen crew from over-slicing and dicing).  

• Re-use leftover ingredients when possible. The extra vegetables prepped on Tuesday can go into a soup on Wednesday. Day-old bread can be toasted for salad croutons. Maturing berries can be used for a sorbet or dessert sauce.

3.  Trim portion size. 

Diners in the U.S. have become accustomed to large portions piled high on their plate.  The U.S. is the 16th most obese country in the world, out-ranking other nations of similar size or economic development. Trimming the size of food servings will not only save you money, but will be appreciated by a growing, health-conscious population.

4.  Set a food budget, monitor and optimize menu price.

Divide the total cost of the ingredients in a single serving by the cost of that menu item. If the percentage is higher than 30%, you need to raise the price of the item, search for cheaper ingredients, or get if off your menu entirely.  

5.  Look closely at how you are currently buying.

Are there opportunities for saving money by changing distributors or joining food co-ops?  Is bulk buying truly giving you the savings you need? Expired product from over-buying is one of the leading causes of food waste. Steve Stratton, an owner of six McDonald’s stores, has discovered bulk buying isn’t always the cheapest answer. Stratton noticed the optimal food costs in his stores came when he purchased cooking oil on an as-needed basis, versus contracting with a combined fresh oil+used oil equipment supplier.  Combined systems are convenient, but the supplier controls the delivery frequency of the fresh oil, whether it is needed or not. A service contract also made him more susceptible to monthy fees and delivery costs. Stratton calculated that he spends $1000/month in stores in which the fresh oil supply is built into the used oil tank, compared to $800/month for systems that use jibs or individual containers to fill fryers with fresh oil.