Running a restaurant successfully is not an easy task; in today’s competitive market, it takes a lot for a restaurant to survive. You have to serve quality food, gain loyal customers and earn a profit to stand tall and thrive in the industry.
One of the most significant reasons restaurants fail is that they cannot deal with the fluctuation in raw costs while maintaining high service levels. As the price of raw materials keeps rising, restaurant owners cannot increase the price of their food items as frequently.
The inflation of food prices is a challenge that every restaurant owner has to deal with at one point. If they cannot handle this, or it eventually takes control of them, they have no other option than to shut down the business. So, how do they manage this?
There are many restaurants that have been successfully winning this challenge; one of them is Milky Lane. Milky Lane is a popular Australian burger restaurant, and even after the pandemic, they are standing strong.
Below are some of the strategies to learn from the best burger restaurants in Australia, to manage the fluctuating cost of ingredients:
Purchase in Bulk
Bulk buying is the best way to save money on raw materials. There are so many ingredients used that are non-perishable; these food items can be purchased in bulk and saved for the future. Rice, flour, honey and pasta are some of the raw materials that can be purchased in bulk.
By doing this, you not just get your items at a lower price, but you are ready for an increase in the usage of these items without running out. You can also purchase perishable items like vegetables and fruits directly from farmers or local sellers.
Understand the Quantity Required
Here is where some owners or managers can go wrong. Estimation is a crucial part of running a restaurant. You need to know how much food you need so that you don’t overbuy or underbuy.
Tracking inventory to know what the average actual consumption of foods is at your restaurant is one of the most effective ways to save money.
Track Pricing Changes
Another important strategy that a restaurant should follow is tracking the price changes of foods and their impact on the restaurant’s finances.
By tracking these costs, you will know the right time to rearrange the dishes’ price on the menu to avoid losses.
The strategies above are some of the best ways to try and keep up with the changing prices of food. However, every restaurant will have their own small ways to ensure that they can remain profitable while maintaining the best level of service possible.
Other rising issues can include food wastage; a lot of food can get wasted because there was no proper evaluation of the portion sizes or overbuying of certain ingredients. Serving portions sizes that are too large, leads to higher costs and wastage.
It is good to connect with the right vendor that will supply you with the materials you need and pay a reasonable price that is sustainable for your business. Not only will you get the same quality of materials each time, but it can keep prices at the right level for you to create profit.