Managing Food Costs

Managing Food Cost: by Team BondEsq

7 Actionable Tips To Help Manage Food Costs

Managing food costs is crucial for the success of any food and beverage business, whether you own a restaurant, café, catering service, or are a food producer. Effective food cost management not only improves your bottom line but also helps maintain consistent quality and customer satisfaction. Here are seven actionable tips to help you manage your food costs effectively:

1. Regular Inventory Checks - Conducting regular inventory checks helps you keep track of what you have in stock and what you need to order. This prevents over-ordering and reduces waste. For example, JW Catering Service, one of our clients, implemented weekly inventory checks, reducing their food waste by 20% and saving them thousands of pounds annually.

2. Portion Control - Standardising portion sizes ensures that you are not serving more than necessary. This helps maintain cost consistency. Training your staff to measure portions accurately can make a significant difference.

3. Supplier Relationships - Building strong relationships with your suppliers can lead to better prices and terms. Don’t be afraid to negotiate for discounts or bulk purchase deals. Renegotiate your contracts and save hundreds or even thousands on your monthly supply costs.

4. Menu Engineering - Analysing the profitability of each menu item can help you focus on the most cost-effective dishes. Removing low-margin items and promoting high-margin ones can boost your profits. By adjusting their menu, JW Catering Service increased their profit margins by 12%.