How to reduce your restaurant’s operating expenses

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The key to having a successful restaurant business is to keep your restaurant expenses low while maximizing revenue. In these challenging times, a lean operation will also help your restaurant tough it out despite a drop in revenue.

In this article, let’s discover some ways you could reduce your restaurant’s operating expenses.

Manage your inventory well

Your restaurant stock and raw materials make up for a large portion of your restaurant’s expenses, hence, it is important to ensure that your inventory is optimised.

Make sure that you conduct stock take in regular intervals in order to quickly recognise any over stocking that leads to wastage and increased restaurant expenses, or under-stocking that results in a potential loss of revenue. This is where a good cloud based inventory management system comes into play as you will be able to view your inventory anytime and anywhere.

In times like these where there is sudden tightening and relaxing of Covid19 measures, it becomes even more crucial that you are familiar with your inventory so that you can make adjustments for your next stock in cycle to prevent over stocking.

Reduce food wastage

Food wastage does not only come from over stocking your inventory but also during food preparation. In order to reduce food wastage to a minimum your could adopt these practices in your restaurant kitchen:

Create a preparation list for your kitchen staff which defines the food preparation best practices to avoid over preparation or wastage of materials.
Practice the first in first out rule: Label and arrange your stocks and raw materials so that the oldest ingredients gets used first to avoid having to throw away ingredients just because they have gone bad.
Try to cut every ingredient to its maximum potential. Many restaurants tend to discard any extra cut off ingredients or leftovers during food preparation, which is not a cost effective practise.
Reuse any ingredients which can be reused. You could use.

Keep in mind, ingredients in the bin are equivalent to money in the bin!

Reduce food cost

While it is important to keep food wastage low, reducing the cost of your raw materials is also key to minimising your restaurant’s expenses. Without practising food cost control, you may slip into the red even without realising it.

This is where keeping tabs on your cost prices from your various suppliers is important. By using an enhanced cloud based POS system, you will be able to record your cost prices from various suppliers and even pull out reports on total costs, revenue and profits over a period of time. This is valuable data for you to be able to perform food cost control effectively for your restaurant.

It is also a good idea to constantly source for new suppliers who are able to provide low cost and good value raw materials to keep your options open.

Focus on your staff

Your team is what keeps your restaurant in operation. It is important to provide proper training for your staff and keep them in high morale, especially in difficult times, so that they will be equipped with the skills and motivation to perform at their best.

A high performing team with low employee turnover will significantly contribute to reducing your expenses on manpower.

Embrace productivity boosting technology

Technology in the F&B industry has been rapidly evolving over the years. There is a common reason behind big restaurant establishments making the move towards digital tools such as self ordering kiosks and QR ordering.

Such digital tools have empowered restaurant owners to reduce dependence on large manpower for efficiency by reducing the need for repetitive manual labour such as order taking and order entry.

With digital solutions, you can reduce your restaurant’s expenses by cutting down on labour costs and at the same time streamline your entire restaurant operations through digitalization, to help you run a lean restaurant operation, maximizing your profits.

If you are looking for digital ordering solutions like QR ordering, self ordering kiosks and online food ordering systems to boost your restaurant’s productivity and streamline your operations to reduce operating expenses, drop us your contact details below and we will be happy to arrange a free demo with you!

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7 Tips to Optimize Operations at Your Takeaway Food Kiosk in Singapore

By Liang Wei Liaw • 09 May, 2024

Takeaway food kiosks in Singapore generally serve the demographics of Singaporeans that are looking for quick, convenient and tasty meal options. Hence, optimizing operations at your takeaway food kiosk is essential for delivering exceptional service and maximizing profitability. With the increasing demand for quick and convenient dining options, implementing strategies to streamline processes and enhance efficiency can set your kiosk apart from the competition. Here are seven tips to help you optimize operations at your takeaway food kiosk in Singapore, leveraging self-ordering technologies and online platforms to meet customer demands and drive success. Embrace Self-Ordering Solutions Invest in self-ordering kiosks or QR code ordering systems to empower customers to place their orders independently. By offering self-service options, you can reduce wait times, minimize order errors, and improve overall efficiency at your kiosk. Emphasize user-friendly interfaces and intuitive navigation to ensure a seamless ordering experience for customers. Implement Online Ordering Platforms Extend your reach and cater to digital-savvy customers by implementing online ordering platforms for takeaway and delivery. Utilize mobile apps or web-based ordering systems to enable customers to place orders remotely and schedule pickup times at your kiosk. Provide incentives such as exclusive discounts or loyalty rewards for online orders to encourage adoption and drive sales. Optimize Menu Selection and Layout Streamline your menu selection to focus on popular and high-margin items, reducing complexity and speeding up order processing. Organize your menu layout logically, grouping similar items together and highlighting best-sellers or promotional offerings. Utilize digital menu boards or signage to display menu options clearly and attractively, guiding customers towards their desired selections. Invest in Efficient Kitchen Equipment Equip your takeaway food kiosk with efficient kitchen equipment and tools to expedite food preparation and assembly. Invest in high-quality appliances, such as commercial-grade grills, fryers, and ovens, to ensure consistent quality and timely service. Implement workflow optimizations and station layouts to minimize bottlenecks and optimize throughput during peak hours. Streamline Order Fulfillment Processes Develop streamlined order fulfillment processes to ensure orders are prepared and delivered promptly. Implement order tracking systems or digital ticketing solutions to monitor order status in real-time and prioritize tasks accordingly. Train your staff to work efficiently and communicate effectively to minimize wait times and maintain customer satisfaction. Prioritize Hygiene and Safety Measures Uphold stringent hygiene and safety protocols to ensure a clean and safe environment for both customers and staff. Implement regular cleaning and sanitation routines for all surfaces, equipment, and utensils to minimize the risk of contamination. Provide hand sanitizer stations and encourage proper hand hygiene practices among your team members. Monitor Performance and Seek Feedback Continuously monitor key performance indicators (KPIs) such as order processing times, customer satisfaction scores, and sales metrics to identify areas for improvement. Solicit feedback from customers through surveys, comment cards, or online reviews to gain insights into their experience and preferences. Use this feedback to iterate on your operations and enhance the overall customer experience at your takeaway food kiosk. By implementing these seven tips, you can optimize operations at your takeaway food kiosk in Singapore, delivering fast, convenient, and high-quality service to your customers. By embracing self-ordering technologies, leveraging online platforms, and prioritizing efficiency and hygiene, you can position your kiosk for success in the competitive F&B landscape. iMakan Apart from looking to value add F&B owners in Singapore through information sharing articles, iMakan also provides self ordering solutions such as self ordering kiosks, qr ordering, and online ordering solutions for F&B businesses. If you are looking for such self ordering solutions, WhatsApp us or click here to drop us an enquiry.