Running a collective restaurant, whether it's a school canteen, a company restaurant or a retirement home, is a balancing act. Not only does it involve providing quality meals to its guests, but also effectively managing costs to maintain profitability, all against a backdrop of crisis and inflation. It's not an easy task... but it's not impossible! Follow our strategic advice on how to reduce your canteen's costs.
Understanding catering costs
The first step to optimizing cost management in foodservice is to understand the different sources of expenditure. From the purchase of raw materials to personnel and operating costs, each cost category has an impact on your establishment's overall budget.
List of costs
Drawing up a detailed list of all your costs gives you an overview ofthe different sources of expenditure. Here's a list of typical catering costs:
- Food costs: purchase of raw materials (ingredients) and costs linked to product quality and origin (organic, local, etc.).
- Personnel costs: employee salaries, associated social security charges and taxes, staff training.
- Operating costs: energy (electricity, gas), water, miscellaneous supplies (cleaning products, small kitchen equipment, etc.).
- Equipment costs: purchase and maintenance of kitchen equipment (ovens, refrigerators, etc.), replacement and maintenance of worn or obsolete equipment.
- Rental costs: rent, bank loan or depreciation of premises.
- Transport costs: delivery of raw materials, transport of meals (for remote catering services).
- Marketing costs : advertising and promotion, guest loyalty programs.
- Administrative costs: management (accounting, human resources), insurance, office supplies.
👉 Going further: 6 tips to improve profitability in foodservice
Analysis of current costs
Go back over last year's financial statements and analyze all your costs. This will enable you to identify unnecessary expenditure, areas where savings can be made, and make informed decisions to optimize your operations.
- Which budget items were respected and which were overspent, and why?
- What proportion of food costs can be reduced by negotiating better with suppliers or buying in bulk, for example?
- How can you optimize energy costs without compromising operational quality?
- What strategies can you put in place to reduce personnel costs, particularly with regard to overtime?
- Have you encountered any unforeseen circumstances that have disrupted the organization of your work, and how can you anticipate them in the future?
- To what extent can you anticipate changes in human resources or market fluctuations?
👉 Going further: 9 tips for better management of your company restaurant
6 effective strategies for managing your restaurant costs
Here are a few practical and easy-to-implement strategies to help you reduce expenses and optimize the profitability of your business:
1. Reduce food costs
- Cook with local, seasonal produce to cut costs, while offering tasty, healthy meals.
- Control portions to avoid wastage: in 2020, ADEME estimated the cost of food waste at 68 centimes per guest per meal.
- Use digital solutions to manage your inventory in real time. For example, integrating tools like Inpulse can limit your material costs while increasing your profitability.
- Take control of loss management to combat food waste by better planning your purchases and using leftovers responsibly.
2. Reduce personnel costs
- Limit staff turnover by creating a positive working environment and offering competitive benefits.
- Offer your employees training to improve their skills, thus increasing their efficiency and productivity.
3. Reduce operating costs
- Reduce your energy consumption by renegotiating your bill with your gas and electricity supplier, and taking advantage of the competition.
- Use management tools like IO Analytics to track your expenses in real time.
- You should also consider investing in energy-saving equipment which, although initially expensive, can reduce costs over the long term.
👉 To find out more: How can you reduce your restaurant's energy consumption?
4. Reduce equipment and rental costs
- Reduce equipment costs with regular maintenance to extend the life of your equipment.
- Optimizing space utilization can also reduce your rental costs. Make sure every square meter is used to its full potential.
5. Reduce transport costs
- Renegotiate with your suppliers to obtain better prices while maintaining optimum product quality.
- Optimizing delivery routes can also reduce transport costs and improve efficiency.
6. Reduce marketing costs
Consider implementing a loyalty program that encourages regular guests while keeping marketing costs low.
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Want to digitalize your restaurant? Contact our team of foodservice experts!
