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Amid these potential disruptions, operators need a fresh approach to managing food costs. Currently, owners and operators across the country are grappling with: Worker Shortages : The restaurant industry is facing a severe labor crunch, with 45 percent of operators reporting they need more employees to meet demand.
Restaurant operators are dealing with shrinking margins, labor shortages, and higher guest expectations than ever before. It’s about taking friction out of operations—so staff can spend more time focused on hospitality, not paperwork. Optimize pricing strategies based on real-time demand, reducing food waste.
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. This leads to huge financial losses, operational inefficiencies, and environmental harm.
These include: Food Costs Labor Costs Occupancy Costs Operating Costs Marketing and Promotions Expenses Every successful restaurant owner knows that tracking these isnt just a bookkeeping exercise; its how you spot opportunities to save money, collect data for better decision making, and run more efficiently.
This edition of Modern Restaurant Management (MRM) magazine's Research Roundup features rewriting the rules of seasonal marketing, snack wrap traffic driver, GLP-1 use impact on F&B, and restaurant marketing challenges. Notably, 52 percent of respondents cite sales as their primary concern.
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. Knowing the true cost per serving means you’re not guessing where to set menu prices. This gives you a more complete picture of your operational costs.
Without a strong system in place, even the best restaurants in the world will struggle with unhappy customers, high turnover rates, wasted inventory, and razor-thin profit margins. What is Restaurant Operations Management? Great restaurant operations dont happen by accident. Its tough, and cant be done passively.
In order to address ongoing economic strains, more restaurant operators are choosing to strategically use technology and data to become "smarter, not smaller." "Operators are investing in tools that deliver fast, measurable ROI," Samir Zabaneh, CEO of TouchBistro, told Modern Restaurant Management (MRM) magazine. "That
Every cook, at least every serious cook, seems to want to work in one of those exceptional fine dining or cutting-edge experimental operations that are depicted in shows like Chefs Table or The Bear. These opportunities are far more limited in that single unit operation even though their chef may be exceptional and the menu noteworthy.
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.
For example, training employees to not waste food and other resources is a growing priority for restaurants seeking to minimize environmental impact while maximizing efficiency. By incorporating this training into your calendar, you align your business with modern consumer values and cut down on operationalwaste.
As technology bridges gaps in industries and societies around the world, making advanced solutions accessible to independent operators is vital to their success. Scalable solutions like self-service kiosks and predictive analytics are transforming the way small businesses operate. Technology is quickly becoming a lifeline for survival.
“Egg demand was relatively stable in the early 2000s and seasonality played a much bigger role in peak demand periods than it does today,” said Brian Earnest, lead animal protein economist with CoBank. “While seasonality remains an influencing factor, egg use has grown dramatically over the last 20 years.
One of operators most difficult challenges is balancing restaurant operating costs without compromising the food, service, and customer experience that makes your restaurant unique. The Three Types of Restaurant Operating Costs Before you can start paring down expenses, you have to understand what youre actually spending and why.
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.
Looking for someone to oversee day-to-day operations is a critical business decision that needs careful consideration. 68% of diners plan to celebrate at restaurants or bars this holiday season, so having enough people in place is essential. Clear communication is also key. Let’s say the restaurant hosted a wedding reception.
“Egg demand was relatively stable in the early 2000s and seasonality played a much bigger role in peak demand periods than it does today,” said Brian Earnest, lead animal protein economist with CoBank. “While seasonality remains an influencing factor, egg use has grown dramatically over the last 20 years.
Restaurant operators searching for something versatile that will cross the dayparts need to look no further than their breakfast menu as waffles have been breaking out of the morning. Profitability: Waffles are a low-cost, center-of-the-plate item and one of the most profitable breakfast item menu offerings.
. "If I had the opportunity, I would encourage them to employ voice analytics, not to automate ordering, but rather to analyze customer/employee conversations for insights into customer experience, operational efficiency, marketing effectiveness, safety compliance, employee engagement, and more, he said. "The
When used strategically, customer data can help you personalize marketing, streamline operations, and create a better dining experience for your guests. 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.
Restaurants, particularly those operating at scale, have been pressed to adjust their recipes to meet not only public health initiatives, but also increasingly health-conscious customers. It also means rethinking menu development processes. What’s Next for Bitter in Menu Development?
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. Did you know that just 1 oz.
Health-Focused Restaurant Concepts Smaller or Streamlined Menus As diners prioritize healthier options, smaller menus are emerging as a strategic approach. By focusing on nutrient-dense dishes, restaurants can reduce waste, optimize ingredient sourcing, and provide curated choices that align with current wellness trends.
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.
Real-time inventory systems help restaurants cut food waste , save money, and improve operations. Automate Orders : Automatically reorder items when stock runs low, minimizing waste and emergency purchases. Integrate with POS Systems : Sync with sales data to refine menu choices and track high-waste items.
A spike in food costs, a drop in sales volume, or one slow season can wipe out months of hard work. 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. Your cost of goods sold (ingredients, beverages, packaging, etc.)
Many operators worry about wasting money on the wrong strategies or not seeing a return on investment, making it tempting to avoid marketing altogether. Increase sales by promoting high-margin menu items and special offers. You might need to spend more on marketing before busy seasons and scale back during slower months.
Most of the restaurant technology tools operators use every day were first introduced years ago, but it wasnt until the 2020 Tech Boom, brought on by COVID-19, that widespread adoption became essential. Do you lose money due to food waste? Identify your biggest pain points. Start by pinpointing where your restaurant struggles the most.
Photos of your menu items, ambiance, and even happy customers will give potential guests a glimpse of the dining experience you offer. Use it to share updates, special events, or new menu items. For example, you can promote your seasonal dishes or happy hour specials. It's an active marketing tool.
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.
10 Online Food Delivery Key Performance Indicators (KPIs) to Monitor Next, well break down the essential food delivery KPIs every restaurant should trackand how each one impacts the success of your online ordering operations. How to improve it Streamlining kitchen operations is key to reducing prep time. What Impacts Order Volume?
If you’re a restaurant operator trying to drive more online orders, build loyalty, or simply get noticed, an active Facebook Page can help you show up where your customers already spend time. Share behind-the-scenes content, promote popular menu items, and spotlight your loyalty program to keep diners engaged and coming back.
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.
By Briana Hilton, Contributor Yelp listings indicated that about 53,800 restaurants began operations in 2023 — a figure that represents a 10% increase from 2022. For instance, while a truck that sells fresh fruit can work well at a farmers’ market, a menu that features burritos may be a better fit at a college campus.
Instead of constantly playing defence with menu updates, imagine a centralized system that allows you to make menu changes instantly across every delivery app and direct ordering platform. What is Menu Management Software? Think of menu management software as the control center for all your restaurants menus.
Think seasonalmenu items, weekend-only bundles, or one-day-only discounts; the urgency motivates guests to take action soon. The best part is these promos don’t require big budgets or deep discounts, but they consistently boost restaurant sales while keeping your menu new and exciting.
percent menu-price inflation rate. With households increasingly treating dining out as a luxury, every menu item and service interaction becomes a potential make-or-break moment. Red Robin climbs 3 percent to 78 thanks in large part to its focus on menu and food. At the same time, U.S. chain sales grew just 3.1
According to 51% of restaurant operators, staffing is one of the top challenges to success. How would you recommend menu items to guests to enhance their dining experience? Have you ever handled a situation where a customer asked for a dish not on the menu? What techniques do you use to upsell menu items or drinks?
They generate large amounts of waste and carbon emissions through food production and transportation. Support for Local Farmers By sourcing organic ingredients from local farmers, restaurants can contribute to the growth of small-scale agricultural operations.
Although ambiance , narrative, and menu diversity drive choices just as much, convenience and quickness remain critical. Securing the Right Location While Navigating an Evolving Real Estate Market The physical space of your restaurant determines how it feels, who it attracts, and how efficiently operations run.
Understanding your customers and operations starts with the right data. Restaurant POS data offers valuable insights that go far beyond transactions — revealing trends, menu performance, peak hours, and even staff efficiency. When you can predict how customers will behave, you can prepare for busy and slow seasons.
Proper cost tracking helps you set profitable menu prices, cut expenses, and manage inventory efficiently. Steps to calculate costs : Determine unit costs, account for waste, and break down menu item costs. Improve profits : Analyze cost data to refine menu design, negotiate better supplier deals, and reduce waste.
These are tools that can help you streamline operations, easily schedule staff, and make sure you never run out of ingredients for your best-selling menu items. AI is no longer just a buzzword, its a reality that is reshaping how restaurants operate, interact with customers, and make decisions.
By accurately calculating food costs, restaurant owners can set the right menu prices, reduce waste, and maximize their profits. Whether youre a seasoned restaurateur or just starting, mastering food cost management is the key to boosting your restaurants profitability. Whole Wheat Bun $0.30 Avocado(1/4) $1.20 Total Cost $5.15
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