Running a restaurant business is exciting, but it’s not without its challenges, and one of the most significant hurdles any restaurant owner must contend with is managing expenses. Supplies and ingredients are undoubtedly the biggest expenses restaurant owners have to deal with, and they just keep increasing. With profit margins getting increasingly thin every day, it’s essential to find innovative ways to stretch your restaurant supply budget without compromising the quality of the food. In this blog post, we will explore practical ways to save money and stretch your restaurant supply budget without sacrificing your brand’s reputation.
Buy in Bulk
Buying in bulk is an excellent way for restaurants to save money. You can lower your procurement costs, benefit from price discounts or deals, minimize time spent purchasing, and reduce your carbon footprint. Every purchase you can check that the supplier is giving you the best offer, and negotiate better rates. You’ll also make things easier when it comes to inventory management, freeing up time for more important business activities.
Restaurants can find great deals on bulk supplies at wholesale markets, online stores, and suppliers that specialize in restaurant grade ingredients. Popular items to buy in bulk include canned goods, grains, flours, cooking oils, condiments, spices and herbs, dried fruits & vegetables, sauces & dressings, dairy products like cheese and butter and frozen items.
These items are great because they last for a long time when stored properly, meaning restaurants can stock up and spread their food costs out over weeks or even months. Additionally, buying in bulk often means that you get better quality products at a lower price than if you were to buy them in smaller quantities. Knowing which ingredients have the longest shelf life and can be purchased in bulk is key when stretching your restaurant supply budget.
Use Generic Ingredients
Using generic or house brand products can be a great way to save money without sacrificing quality. Experiment with different generics to find out how taste and texture compare with branded ingredients. Be aware of bundle deals that GPOs, wholesalers, or manufacturers offer on the generic or house-named products. Remember, your customers won’t know which brand of flour or butter you’re using.
Re-Organize Your Storage Space
Disorganized or crowded storage space often results in unnecessary waste, higher transportation costs, or missed opportunities to buy in bulk. Re-organizing your storage space can help you plan your purchases better, bulk as much as possible, reduce the risk of spoilage, and save costs of replacement. Assign different storage spaces to different categories of supplies, optimize shelves, refrigerators, and freezers, and label them appropriately. Ensure your staff knows precisely where everything is and how to organize it to avoid losses.
Keeping and updating supply lists is essential to ensure that restaurants always know what they have in stock. This helps prevent overspending on items that are already on hand, as well as ensures the right ingredients and materials are readily available for use when needed. Supply lists should be reviewed regularly to identify any shortages or surpluses in inventory, which will help to ensure that the right amount of stock is always on hand.
Restaurants should strive to keep accurate supply lists by recording deliveries and tracking sales data in order to anticipate future needs. This proactive approach to managing restaurant supplies helps maximize savings and ensures smooth operations.
Create a “Specials” Menu
Creating a “specials” menu can come in handy when you need to use up any ingredients that are closer to expiration date or a surplus of a particular item. By featuring ingredient-focused menu items, you can creatively incorporate surplus items that you might have purchased in bulk or that might end up going to waste. Use your menu to your advantage by showcasing certain ingredients that need to be used up, allowing your restaurant to make money and save money at the same time.
Creating unique dishes for specials is a great way to make use of surplus ingredients while adding diversity and excitement to the menu. Think outside the box when creating special dishes, making sure they include some key ingredients that need to be used up. Utilize flavors from different cultures and cuisines to create something truly memorable that your customers will love. If a dish is really popular, consider adding it to the regular menu. Specials are a great way to add variety and provide customers with something new and exciting each time they come in. With just a little creativity, restaurants can save money and become even more successful.
Purchase Local and Seasonal Supplies
Purchasing local and seasonal supplies will not only save on transportation costs, but also support the local economy and lower environmental impact. Local suppliers are more likely to give better discounts and aren’t under the same pressure of the international markets.
Additionally, fruits and vegetables that are in season are fresher, better tasting, and often come cheaper than those that aren’t. Many locally-bought breads such as sourdough and French baguette loaf breads are better when bought fresh rather than shipped in or frozen.
Rather than using your restaurant’s budget for expensive superfoods, opt for more affordable and nutritious locally grown produce. Catering your menu to your geographic location is essential for sourcing the best local produce. Get to know what grows well in your area and get creative with recipes that incorporate these ingredients.
Take advantage of seasonal availability and take the time to explore local farmers markets or specialty suppliers who specialize in locally grown products. Not only will you be able to create delicious dishes with the freshest ingredients, but you’ll also be able to support local businesses and reduce your carbon footprint. Additionally, researching native food cultures can help restaurants find unique flavors that will add a special twist to the menu and make it stand out from the competition.
Running a restaurant takes hard work, dedication and good business sense, but it’s also one of the most profitable ventures when run effectively. Managing your expenses is key, and by using these five methods to stretch your restaurant supply budget, you take a significant step towards a profitable and successful restaurant. Through bulk purchases, generic ingredients, better storage management, creative menu design, and sourcing local and seasonal supplies, you can save money, reduce waste and achieve a sustainable balance in your business.