The past few years haven’t exactly been a walk in the park for anyone involved in the restaurant industry. With some restaurants shutting their doors entirely for months at a time in the interest of public safety, saving money became a top priority. But rising restaurant expenses have been nearly inevitable during the pandemic, to the frustration of many restaurant owners. We’re here to tell you why restaurant expenses are going up, and to explain what you can do to save a few dollars in your restaurant.
Rising Costs due To CDC Guidelines
The CDC’s guidelines have affected restaurants more than almost any other sector of the service industry. It’s important to follow the rules in order to keep employees and customers safe, not to mention keep your restaurant in business. But it can be frustrating to see so much if your restaurant’s budget is applied to PPE and cleaning supplies that weren’t calculated for when your restaurant spending expectations were outlined.
However, there are some ways that your restaurant can decrease spending in this area without compromising safety. One way to do this is to make sure that you’re always ordering supplies in bulk. Also, order concentrated versions of cleaning supplies that you can mix with water yourself in order to save money. This also means that you’ll be shipping lighter packages to your business for the same amount, or more, of the cleaning supplies, so you’ll save on delivery fees as well.
Rising Restaurant Expenses from 3rd Party Delivery Services
Delivery has become a big asset for businesses during the pandemic. Most restaurants are continuing to offer these delivery services with no signs of stopping. Third-party services are an easy way to make money off delivery orders without having to staff your own personal crew of delivery drivers. However, these services can also cause your restaurant to lose a lot of money to delivery fees. Not only do third-party delivery services charge a fee to buyers, but they usually also take a percentage of the bill from your restaurant, as well.
What can you do to recover some of that lost revenue? Consider charging more for items ordered through these services, if that’s an option for your restaurant. It may take some trial and error to find a price that doesn’t dissuade people from ordering delivery. But the right balance can help your restaurant continue to keep delivery orders profitable.
Increased Inventory Prices
The third and final main reason for rising restaurant expenses is the increased inventory prices that the pandemic has brought on. These are out of your restaurant’s control, but that doesn’t mean that there isn’t anything you can do about them. Instead, consider retiring certain menu items that aren’t bestsellers. You can replacethem with other dishes that are lower-cost to produce at the current moment. You can, of course, also raise prices in accordance with supply price raises.
We hope that these tips are helpful to you as you work to manage shifting expenses that the pandemic has brought on. Best of luck!
