Opening a new restaurant is always considered a risk, but it seems especially daunting in the wake of the pandemic. There are many startup costs, from leasing fees and new equipment to staff and supplies. With that said, it’s good to have a solid financial plan from the start.
Here are just a few strategies you can implement in your new restaurant to set you up for success.
Track and manage inventory
First, you’ll need a standard method for tracking and managing your inventory. These processes will give you a clear picture of how much food and other supplies you have in your restaurant, what is necessary, and how much you should order on your next shipment. Keeping a record of your incoming and outgoing stock will ensure that you don’t overspend on supplies, and it will be easy to tell when something goes missing.
Hire the right staff and avoid turnover
This one might seem like a no-brainer, but hiring the right staff from the start can make a significant impact on your bottom line. During the hiring process, your primary focus should be on selecting quality employees, offering them favorable working conditions, and encouraging them to stay for a long time. The restaurant industry has one of the highest turnover rates reaching as high as 75%. The cost of bringing on a new employee isn’t cheap, especially when you invest time in training them properly. So, the happier you can keep your good employees, the better.
Buy used equipment when possible
When you open a new restaurant, purchasing new equipment can significantly dent your budget. Depending on the type of appliance, it never hurts to shop around for something used. Most used restaurant equipment is greatly reduced in price and is often in excellent condition. Keep an eye out for recently closed foodservice businesses that may be selling off their old equipment at discounted costs.
Trim down your menu
Many new restaurants make the mistake of going too big too quickly. When it comes to saving costs, keeping your menu short and sweet is the best way to go. You’ll spend less cash on supplies, expedite and refine the cooking process, and ensure your customers are happy enough to keep coming back. Use your inventory reports to see which menu items have the best return for your restaurant. Find options that cost the least to prepare and have a higher menu price your customers are willing to pay.
Outsource your accounting
Another way to manage your costs in a new business is by outsourcing labor-intensive administrative tasks like accounting. Using an outsourced accounting service allows you to spend less time in your office crunching numbers and more time focusing on other aspects of your restaurant business. Whether you’re looking to standardize your accounting process, derive big picture business insights, or even plan growth strategies, it is essential to have a trusted partner who can streamline accounting and deliver financial reports. Those processes are necessary for business growth and profitability.
At PABS, we have been helping restaurants respond to rapidly evolving business dynamics and develop client-centric focus while we take care of their end-to-end accounting needs. Learn more by giving us a call today.