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Amid these potential disruptions, operators need a fresh approach to managing food costs. But it goes beyond figuring out how to source the freshest ingredients at the best price. But it goes beyond figuring out how to source the freshest ingredients at the best price. percent annually. One way to stay agile?
FDA’s Food Safety Modernization Act (FSMA) Rule 204 approaching, restaurant operators stand to gain improved confidence in the safety and quality of the food they serve. The resulting improvements in data accuracy and reliability will help the operator respond to food safety incidents efficiently.
Modern Restaurant Management (MRM) magazine asked restaurant industry experts for their views on what trends and challenges owners and operators can expect to see in 2025. When consumers order more food online, it’s clearly good for business – but it can also make it harder for businesses to manage inventory.
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. What is Restaurant Operations Management? Great restaurant operations dont happen by accident.
These changes are driven by a combination of consumer demands, technological breakthroughs, and the industry’s need to adapt to economic and operational challenges. From reimagining workflows to enhancing guest interactions, technology is shaping how restaurants, bars, and hospitality businesses operate.
You’re unlikely to eliminate all your sources of overuse immediately. It takes commitment alongside some investment in specific areas of operations. Managing Inventory The first area of focus for any waste elimination strategy is your restaurant’s approach to ingredients.
consumers not only spurring inflation but lowering overall consumption and slowing the economy, cautioned Ben Johnston, Chief Operating Officer of Kapitus, a small business lender and marketplace. "U.S. " What can restaurant operators do to take proactive steps to mitigate potential future shocks to their supply chains and costs?
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. A lot of operators still might not do it, though, either because they underestimated how important it really is, or they felt overwhelmed by the math it takes to get accurate numbers.
Diversifying Suppliers : Establishing relationships with multiple suppliers across different regions can reduce dependence on any single source, mitigating the impact of localized outbreaks. Key solutions include: 1.
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.
It ensures process consistency and simplifies operations across multiple sites. Operations at Multiple Locations Technology makes managing numerous locations easier in many ways: Centralized Management Systems: Managers can manage multiple locations from one platform. Inventory management software: Tracks stock in real-time.
The Turning Point: Expanding into CPG Scaling an artisan food business isn’t just about making more product—it’s about ensuring that growth doesn’t dilute quality, customer experience, or operational efficiency. Tying up all our cash into aging inventory was not going to work for us.
Technology – and especially AI – is already reshaping how restaurants operate, and that impact is only going to grow. AI-driven tools can help optimize everything from labor scheduling to inventory management, reducing waste and improving margins. The key is using technology to work smarter, not harder.
From labor to supply chain to utility bills, restaurant operators are feeling the pressure. If you miss the mark there, your labor, inventory, and prep levels are all off. We also work very hard overall to source items in advance and look at buying products that may be affected in bulk.
It requires long-term vision, operational overhauls, and, at times, investment. This means understanding and optimizing existing systems and inventory to avoid unnecessary complexity. Increasing the number of supply partners or product options adds complexity to logistics, inventory management, and compliance.
As a restaurant manager or operator, you are the driving force in productivity – leading your staff and keeping customers happy. Many restaurant operators juggle multiple locations, and adding managers adds another link in the chain of command to manage. This leads to the abnormally high turnover rate most operators experience today.
This leads to huge financial losses, operational inefficiencies, and environmental harm. This is where artificial intelligence (AI) comes in, providing game-changing technology that restaurants can use to streamline operations, minimize waste, and boost profits. This allowed chefs to track and manage stock more effectively.
In 2025, operators can offer elevated foodservice experiences at more affordable prices through emphasizing value in LTOs to drive sales. With 50 percent of operators launching at least one LTO in the last year, it is highly encouraged this continues in 2025. The focus on wellness extends to adaptogenic and vitamin-infused drinks.
Once you have that total, subtract all of your costs, such as labor, inventory, rent, utilities, and other operating expenses. It's also important to remember that profit margins for bars can vary widely based on factors like your pour cost and operating expenses. This final number is your net profit.
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. Reduce Spoilage : Get alerts for expiring items and use the FIFO method to manage perishable goods.
When used strategically, customer data can help you personalize marketing, streamline operations, and create a better dining experience for your guests. It improves operational efficiency. Customer data can help you improve operations and make more informed decisions about staffing and inventory.
As a restaurant operator or owner, youre no stranger to the challenges of running a successful business. From improving customer satisfaction to managing inventory, every day presents a new opportunity to optimize operations. In 2025, one of the most powerful tools at your disposal will be your Point of Sale (POS) system.
Restaurant operators who prioritize transparency can build trust, loyalty, and long-term success. Millennials and Gen Z consumers are likely to research food sourcing, question menu claims, and support restaurants that align with their values. In restaurants, vague language around sourcing can damage credibility and alienate guests.
Hospitality has always been a balancing act, between quality and speed, consistency and creativity, guest expectations and operational reality. It will be shaped by how well operators weave together systems, people, experience, and sustainability. That pressure can stretch operations thin, but it also creates opportunity.
They’re looking for systems equipped with high-performing software and technology, as well as comprehensive support, to help improve quality, streamline operations, and reduce costs. In response, more coffee businesses are exploring in-house roasting as a way to regain control over quality, pricing, and sourcing.
AI investments in customer experience are generating impact with 52 percent of brands and 84 percent of operators surveyed currently seeing high customer experience impact. Deloitte examines what is driving value, perceived challenges, and organizational readiness to scale AI effectively.
Besides, sourcing locally minimizes the environmental impact associated with long-distance transportation, such as carbon emissions from trucks or planes. Digital Menus for Real-Time Updates Digital and QR-code menus allow for instant updates, making it easy to test pricing, add specials, or respond to inventory changes.
LTOs also help you spotlight high-margin items or move excess inventory without slashing prices across the board. A clean, mobile-friendly site with a fast checkout experience makes it easy for existing customers to order whenever they like and gives new customers confidence that your operation is legit.
Rising Food Costs Are Straining Restaurant Finances According to TouchBistro's 2025 State of Restaurants report , food costs remain the number one source of financial strain for restaurant owners, with 26 percent citing it as their biggest financial challenge.
The company reopened full operations at the 115,000 sq ft Jacksonville plant, following a US $65 million upgrade that adds new lines for STōK cold brew and International Delight creamers, as well as a distribution centre to improve supply efficiency across the Southeastern US. The chain aims to double its presence in key markets by 2030.
Nationwide economic shifts following the pandemic have made it necessary for restaurant owners and operators to find new ways to increase profits, add efficiency, lower costs and stay competitive. For restaurants, that means harvesting information from internal and external sources. The key to unlocking the next echelon of success?
Proper cost tracking helps you set profitable menu prices, cut expenses, and manage inventory efficiently. Cloud-based POS systems like Lavu are a popular choice because they combine inventory management with real-time cost tracking. For example, check high-cost items daily, count inventory weekly, and review prices monthly.
Prices for green coffee have surged, operational expenses continue to climb, and economic pressures show no sign of easing. Additionally, certified stockpiles are also running low; ICE warehouse inventories dropped below one million bags earlier this year. Roasters are also grappling with higher operational costs. Enjoyed this?
Modern POS systems arent just for order-taking; they can now help track, optimize, and reduce energy usage across daily operations. Results : Restaurants using these systems report up to 15% energy savings and lower operating costs. Track inventory to reduce food waste and energy-intensive storage. The good news?
Connecting with the consumer through loyalty programs and better customer data is a key focus for operators – more than seven in ten restaurant leaders (71 percent) are planning to increase investment in their loyalty or reward programs to keep customers close over the next 12 months. ” A Year of Challenges U.S.
Singapore) Wed, 11 Jun – Mugg & Bean expansion drives Famous Brands’ operating profit increase. New outlets and refurbished sites lifted Mugg & Bean’s revenue contribution, helping Famous Brands report a 12% rise in operating profit to R 1.23 billion for the year to May, despite inflationary pressures.
In this guide, we’ll break down the top seven POS features you need to create a safer, more compliant dining experience while streamlining your operations. Real-time inventory tracking is another key advantage. By integrating ingredient tracking with kitchen operations, these systems ensure safety and precision.
By replacing high-cost ingredients with more affordable, equally effective alternatives, operators can reduce food expenses by up to 30%. In this case study, well show you how one restaurant implemented ingredient swaps and saw measurable resultsproving that operational efficiency and profitability can go hand-in-hand.
Talk to local business owners, visit during peak and slow hours, and imagine what your day-to-day operations would look like there. To maintain brand integrity, document your operations in detail. If local sourcing is necessary, vet new suppliers carefully. Picking the right place sets the tone for everything that follows.
Source Vendors and Set Up Inventory Tracking Quality ingredients can set your deli apart from similar businesses in the area. If you are sourcing ingredients and products from multiple vendors, consider investing in inventory management software. Related: The Essential Guide to Restaurant Inventory Management Software 3.
Now, as a copywriter at SpotOn, he helps restaurant owners and managers learn how to run a more profitable operation. Handhelds put the ingredients of every menu right at a server's fingertips, with the restaurant POS acting as the single source of truth of ingredient information for the front-of-house staff.
With rising ingredient prices, labor shortages, and tighter margins, operators must find strategic ways to reduce restaurant costs without compromising quality or customer experience. Whether you want to lower your costs, increase profitability, or run a more efficient operation, these ideas can help you reach your financial goals.
We have found that, by keeping it in each location, we’re able to have the freshest product possible, as well as being able to manage inventory levels and waste accordingly,” said Kern. We’re being nimble and changing where we source, while still trying to be as economical and environmentally friendly as we can,” said Wishnow.
Whether you’re a seasoned operator or just getting started, understanding the numbers behind your business can mean the difference between breaking even and breaking records. In this guide, we’ll break down key accounting strategies and tools that help streamline operations and boost your bottom line in 2025.
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