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5 Ways To Cut Costs In A Food And Beverage Business

Do you own a restaurant, or are you engaged in running a food or beverage business? Whether you have it only for delivery or you accept dine-in customers, it’s essential to know how to minimize costs. One of the effective ways to generate more profits is to keep your expenses at bay.

5 Ways To Cut Costs In A Food And Beverage Business

If you have already applied some strategies to save money in other business aspects, yet you continue to incur significant expenses, it’s time to re-strategize things. There are more ways you can do to minimize your operational or other business costs.

Check out below and try the following ways to cut costs in your food and beverage business:

1. Invest In High-Quality And Reliable Process Equipment 

The equipment that restaurants use is extensive. Whatever kind of food manufacturing business you have requires reliable process equipment, like those offered by Federal Equipment and others. It’s common for your kitchen to secure several pieces of machinery and equipment to sustain cooking and baking speedily. Don’t buy restaurant equipment too quickly because there are aspects that need to be considered first.  

You should purchase high-quality equipment for your restaurant kitchen, that will last for many years. Consider the layout and flow of your restaurant kitchen before selecting any restaurant equipment and its peripheral items. Arrange them in a way that will provide productivity and efficiency for all kitchen staff. 

Take a moment to consider the following before deciding on your restaurant equipment list: 

  • Quality 

Start by examining the quality of a restaurant’s kitchen equipment. Whether the equipment is new or used, pay attention to its condition. Check its materials and manufacturer, and inspect if they are at par with the proper standards. Keep in mind that your restaurant will have to comply with legal and safety standards, so make sure all equipment is safe to use. 

  • Cleaning Requirements 

Cleaning is a critical aspect of the store. It is essential to review how the equipment should be cleaned each day, each week, and each month. This is to effectively assign side work to your staff. Because you have considered the kind of material the equipment is made of, you can plan out how their cleaning requirements will be. 

  • Cost 

When selecting equipment for a restaurant, pricing is also a key factor. The first thing you need to do is decide what pieces of equipment you are most concerned about. Some can be replaced, or its job is done manually. Purchase the machinery only when your finances can afford it.

2. Manage Inventory Smartly 

Some food business ideas started right from the kitchen. But while it’s easy to manage your inventory in your personal kitchen, it’s a different story when you’re already operating it commercially. Having an adequate inventory is essential to the functioning of your food and drinks business. Unfortunately, it’s a common tendency for the kitchen department to overbuy sometimes. 

It will help you reduce waste and spoilage if you limit your inventory. This, of course, won’t mean you’d compromise the taste and ingredients of your food, but to be more careful with inventory management. To keep your costs controlled and keep ingredients from wasting away, assign a kitchen staff to do the inventory checking

You should reevaluate your inventory levels and estimate the number of ingredients that will be enough, based on your weekly or daily consumptions. You can add a safety net by adding a bit extra to the order. But don’t over-exaggerate in ordering more. Staff who know they have a limited number of products will also tend to handle and portion out the products more carefully. This ultimately results in cost savings and lesser food wastage. 

3. Go Digital On Menus 

The advantages of tablet menus go beyond saving labor costs: you can also say goodbye to printing expenses. Your customers and diners will check the digital menus by themselves, without flipping pages and possibly damaging the menus, which requires you to have them printed again. 

By going digital on your menus, you show your customers how adaptive you are to technology. This also allows you to stay competitive with the restaurants beside you. Restaurants nowadays go digital to survive and thrive.

Another rich point about digital menus is that they don’t create clutter.  Your tables will look all sleek, organized, and clean without the flimsy menu boards that sometimes look unsanitary and disheveled because of food sauce drips and other mishaps. With digital menus and signages, you can offer promotions as often as you want, and easily change the designs and layouts.

4. Reduce Food Waste 

When considering how to cut costs, restaurant owners often overlook food waste. Throwing away food has been a recurring battle and issue for many businesses engaged in the food and beverage industry. Hence, check out the following tips that will help you reduce food waste: 

  • Be Mindful Of Portion Sizing

There may be an issue with portion size if customers aren’t always finishing their food. One way to see how much portion is consumed on average is to observe your customers’ eating habits. Make sure you serve portions that are reasonable in size to avoid leftovers.  

  • Check The Kitchen Prep List 

The chef should create a daily kitchen prep checklist that specifies each ingredient that needs to be prepared. This will guide the sous-chef and other kitchen staff on how much produce and other components need to be ready for the day’s consumption and work.  

  • Don’t Throw Away The Ugly

Get creative and resourceful by turning something seemingly bad into something usable or consumable. For example, some fruits that are near to spoiling can be created into fresh juices and shakes! Using all your ingredients efficiently and reducing food waste can make a huge difference in your restaurant’s profits. 

5. Train The Staff 

Ensure your staff is aware of the price of the food with which they work, and how that affects your bottom line. When your employees know the value of the ingredients, they’ll be more careful and sensitive not to waste them easily. 

There is a lot of waste generated during the food preparation process. No matter how small the scraps are at first, it eventually leads to a few bucks wasted in the garbage bin. Therefore, if your staff is familiar with the cost of the food, and can utilize ingredients correctly, they’re more educated to save them before getting them spoiled. 

To keep your staff engaged in your food business, apply the tips below: 

  • Train staff in different working stations so they’ll be skilled in various kitchen tasks and roles.
  • Schedule your staff smartly. Know which shift needs more staffing and cut staff during slow periods.  
  • Let everyone perform their jobs accordingly. It’s essential they know what tasks are assigned to them, and understand what the business demands of them. 


There are indeed realistic ways and strategies to keep your costs to a minimum. Eliminating ingredients and food waste, investing in quality equipment, and training your staff well will all contribute to saving money for your food and drinks business operations. When you keep these costs steady, you can increase profits, and afford to grow your business more successfully.


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