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Around 33 to 40 percent of food goes to waste each year. What restaurants can do, however, is re-think how their direct food supply is managed – from transport to inventory control. This helps prevent food from being spoiled in transit and also helps restaurants ensure that their delivery systems aren’t wasting fuel.
Sourcing the best ingredients at the right price requires a keen understanding of seasonal rhythms, strong relationships with suppliers, and flexibility to adapt menus on the fly. Strategies for Managing Food Costs During Disruptions Don’t be afraid to substitute ingredients Your menu is not set in stone. One way to stay agile?
By Bailey Ramsey, Contributor Food waste is a critical issue in the restaurant industry. To put this in perspective, restaurants waste anywhere between 4% to 10% of the food they purchase. Predicting Customer Demand Accurately One of the leading causes of food waste in restaurants is overproduction.
At major chains like McDonald's, AI-powered drive-through systems are reducing order errors, predicting maintenance needs, and cutting waste. For example, Taco Bell is using AI-driven labor and inventory management tools to fine-tune staffing and reduce food waste.
Minimizing Menu Price Increases : Just because diners are still eating out and ordering in, does not mean they are happy about higher menu prices. Restaurant operators should limit significant menu price increases, explore value menus when possible, and avoid implementing any sneaky service charges.
Steady Online Ordering Brings Food Waste, Donations to the Forefront of Priorities Ordering food online increases restaurant sales, but it also can potentially increase wasted food if proactive measures aren’t taken – for both the business and consumers at home.
These systems can understand various accents and dialects, process orders accurately, and even upsell menu items based on customer preferences. One of the most impactful areas is inventory management. This level of precision in forecasting helps restaurants reduce food waste - a significant issue in the industry - by up to 20%.
You can have a crowd-pleasing menu, loyal regulars, and a packed dining roomand still watch your margins disappear. Too many restaurant menus are built on intuition and aesthetics, not real numbers. What Is Menu Engineering and Why Should You Care? Because not every dish thats popular is profitable.
We’re not slashing service or trimming the menu. If you miss the mark there, your labor, inventory, and prep levels are all off. And when those are off, waste and inefficiencies climb. Controlling waste and forecasting the business volumes properly are two specific areas we focus on. The key is control, not cuts.
It would be a safe bet that every diner has had a frustrating experience with inconsistent service based on a poor counter engagement, outdated menu board, incorrect order notes – and the list goes on. Analytics are critical to help restaurants gain visibility into traffic, order makeup, sale insights, inventory, and more.
"That means smarter scheduling, streamlined menus, better inventory control, and automation that frees staff to focus on hospitality. Even menu decisions are now data-driven. " Simplifying menu complexity can also streamline purchasing and reduce waste.
The future of restaurant success depends on streamlining processes, reducing food waste, and enhancing customer experiences—all while making the most of existing resources. Restaurants need technology that’s as flexible as their menu offerings, capable of evolving with the industry without major overhauls. The solution?
Tracking it correctly will: Reveal accurate profit margins Help set profitable menu prices Flag operational problems Support better budgeting Help you stay competitive Yet, despite its importance and the advantages of using it, many operators don’t calculate it regularly or aren’t confident they’re doing it correctly.
Real-time inventory systems help restaurants cut food waste , save money, and improve operations. Here’s how: Track Stock in Real-Time : Monitor inventory levels instantly to avoid overstocking or understocking. Automate Orders : Automatically reorder items when stock runs low, minimizing waste and emergency purchases.
While the cost of food waste isn’t a secret , you probably overlook it, considering it a part of doing business in this industry. It can help you fix discrepancies in ordering and inventory management , minimizing food shrink. Sometimes, making your menu more expensive is counterproductive. What else can it do for you?
Staff productivity plays the largest role in restaurant revenue, which is why it’s so important to invest in your recruiting and hiring strategies, finding like-minded individuals to move your restaurant forward while minimizing time waste. According to Forbes , 50% of employees waste parts of their day on their phones.
For example, AI can help QSRs make smarter inventory decisions by analyzing purchasing trends and aligning ingredient orders with demand. This reduces waste and ensures menu availability, even during busy periods. Start with areas where AI can make a measurable impact, such as inventory management or targeted promotions.
With the right tools, operators can manage staff schedules, streamline kitchen communication, monitor inventory levels, and analyze sales trends all in one place. AI-powered analytics are giving operators clearer visibility into their performance—from tipping patterns and top-selling menu items to bottlenecks in service flow.
In response to rising food costs, 56 percent of respondents said they planned to increase menu prices, down from 61 percent earlier in the year, and 18 percent said they doubled down on inventory and waste tracking, up two percentage points. Baked Goods and N/A Beverages saw growth in 2025.
How each area contributes to the whole is a lesson learned in large properties like hotels, resorts, and clubs. [] MENU DIVERSITY A multi-outlet hotel, as an example, will likely have a breakfast restaurant, a family oriented mid-priced restaurant, and a fine-dining operation.
Once you have that total, subtract all of your costs, such as labor, inventory, rent, utilities, and other operating expenses. Bars that effectively manage their inventory and reduce waste tend to maintain higher margins. To calculate your pour cost, you have to know the total cost of your alcohol inventory.
AI-driven tools can help optimize everything from labor scheduling to inventory management, reducing waste and improving margins. Data Analytics – Leveraging real-time sales and customer behavior data allows operators to make smarter decisions about menu offerings, promotions, and staffing.
A strong POS system can streamline operations, inventory and menu management, assist with staffing shortages and scheduling conflicts, as well as assist with sorting through data and sales patterns to help personalize marketing campaigns in a new location. Tracking inventory can prevent unnecessary and costly food waste.
Every day, youre juggling staff, food quality, inventory, customer service, purchasing, and moreall while trying to cultivate a dining experience that wows your customers enough to keep them coming back. How to solve it: Use data-driven ordering to track inventory closely to forecast demand accurately and avoid overstocking.
” Total egg laying hen inventories, including conventionally raised hens, have not been substantially depleted from where they were at the beginning of the HPAI outbreak, according to the CoBank report. Approximately 70 percent of the menu items at the breakfast and brunch brand with 34 locations features eggs as an ingredient.
Every order placed at a kiosk generates valuable data, allowing restaurants to better understand customer preferences, forecast demand, and optimize menu offerings. Self-service technology allows restaurants to focus on what really matters–customer satisfaction. Technology is quickly becoming a lifeline for survival.
Introduction to Food Waste in Restaurants Food waste is a significant challenge for the restaurant industry, impacting both the environment and profitability. Understanding how to reduce food waste in restaurants is the first step toward sustainable and cost-effective operations.
Do you lose money due to food waste? An inventory management system with automated restocking alerts keeps your stock levels in check. Real-Time Data & Analytics : Track sales trends, top-selling menu items, and peak business hours to make informed decisions. The best tech investments solve real problems.
Running a restaurant is tough, and poor inventory management can make it even harder. Wasted food, stock shortages, and manual tracking errors all lead to higher costs and lost profits. That’s where POS inventory tools step in to help. Alerts : Notifies you of low stock or expiring items to avoid waste and disruptions.
From salted egg yolks and chili crunch fusions to mushroom-infused teas and freeze-dried fruit powder garnishes, Kimpton’s in-house experts share the standout ingredients, menu items and techniques that will come to the table in 2025. Despite the popularity of our events, we will continue to keep them small but mighty in 2025."
” Total egg laying hen inventories, including conventionally raised hens, have not been substantially depleted from where they were at the beginning of the HPAI outbreak, according to the CoBank report. Approximately 70 percent of the menu items at the breakfast and brunch brand with 34 locations features eggs as an ingredient.
Real-Time Inventory Tracking offers a powerful solution by giving operators instant visibility into whats in stock, whats being used, and what needs to be reordered. With real-time data guiding inventory decisions, restaurants can take tighter control of their food costs and boost long-term profitability.
This will also allow the operator to concentrate on the operational and menu aspects, ensuring that both customer service and menu innovation remain exceptional and continuously evolving. In what ways should restaurants be tapping into AI for marketing? Restaurants should tap into AI for marketing in a few key ways.
You can also use sales trends to adjust menu pricing and share customer-favorite menu items, helping you get the most out of high-demand dishes. Data can help you create a menu that contains more of your customers favorites so you can phase out underperforming dishes. Optimize your menu based on sales trends.
It’s like knowing how to make a schedule, do inventory, or cover a section of tables if a server calls out sick and you’re shorthanded. Knowing the true cost per serving means you’re not guessing where to set menu prices. Knowing the true cost per serving means you’re not guessing where to set menu prices. The remaining 71.7%
Introduction In the fast-paced world of restaurants, keeping a close eye on your inventory is as vital as the secret sauce in your signature dish. Proper inventory tracking helps reduce waste, control costs, and boost profits. What Is Restaurant Inventory Management? Key Components of Restaurant Inventory Management 1.
That includes the ingredients and packaging for your menu items, but not things like rent and payroll. This gives you a sense of how effective your menu pricing is. You can have packed tables, long lines, and strong menu item sales, but if your operating expenses are out of control, you still might be losing money.
By accurately tracking ingredient costs and streamlining menu pricing, it helps restaurants minimize waste, maintain profit margins, and make data-driven decisions. Integrated systems also provide real-time insights into inventory levels, ensuring better cost control and operational efficiency.
Food Costs (COGS) Your food costs, or cost of goods sold (COGS), include everything that goes into producing your menu items, including: Recipe ingredients Beverages Condiments Disposables, like to-go containers, straws, and napkins Tracking your food costs percentage helps you understand how much of your revenue is being spent on your menu.
They help with reservations and table management, staff scheduling and time management, inventory tracking, rewards programs, automated marketing, and more. Inventory and supply chain apps. Its difficult to build a solid foundation of repeat customers if the kitchen is constantly 86ing popular menu items.
When it comes to managing inventory, restaurants face a choice: POS inventory alerts vs. manual tracking. While manual tracking may seem like a simple solution, it often leads to errors, wasted time, and unnecessary costs. Managing restaurant inventory can be a major challenge, but the right system can make all the difference.
Integrating mobile inventory systems with POS platforms simplifies restaurant operations by automating inventory updates, reducing errors, and providing real-time insights. Here’s what you need to know: Benefits : Real-time stock updates, improved accuracy, and smarter inventory planning.
Think seasonal menu items, weekend-only bundles, or one-day-only discounts; the urgency motivates guests to take action soon. LTOs also help you spotlight high-margin items or move excess inventory without slashing prices across the board. Trimming underperformers not only reduces food waste; it also improves consistency and speed.
Restaurants can optimize their menu by highlighting delivery-friendly items, improve kitchen workflows through better station organization, and track prep times to identify bottlenecks. Menu Updates: Introducing new items or making existing offerings more appealing can attract more customers. Portion size.
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