When you own a restaurant, it comes with a lot of risks. You’ll have to spend money on renovations, equipment, supplies, and more – all before you turn your first profit. And while the idea of opening a restaurant is exciting and profitable (especially if you get the word out and draw in plenty of customers), there are some serious costs involved. Fortunately, there are ways to cut costs as a restaurant owner without ruining your business plan.
Use Free Marketing to Grow Your Brand
Free marketing is the term for any time you can spend marketing your business that doesn’t cost anything. The most popular form of free marketing is word-of-mouth, which can be a great way to promote your restaurant. You just need to make sure that every customer you serve feels like their experience was unique and unforgettable.
In addition to word-of-mouth, there are plenty of other ways to use free marketing. For example, consider using social media platforms like Facebook, Twitter, and Instagram to reach new customers without spending any money on ads; these platforms are invaluable tools for promoting your business without breaking the bank.
You can also use an email list or blog posts to share information about your restaurant with people who might not be able to visit in person but still want a taste of what you have to offer.
Think about fuel
One of the most expensive things that a restaurant owner has to deal with is fuel costs. When running your restaurant, you’re running a lot of equipment – from your kitchen appliances to your air conditioning units. And all of that equipment needs power, which means you need to use gas or electricity for fuel. If you plan to cook on an open flame and use fireplaces, this means more fuel expenses.
You can’t reduce the amount of fuel you use–it’s the nature of restaurant businesses. Therefore, the only way to reduce your costs is to consider carefully what type of fuel you use. Propane is a common choice for restaurants, as it is cost-effective and better for the environment than other options.
Partner With Suppliers and Vendors
One of the best ways to cut costs as a restaurant owner is by partnering with suppliers and vendors. As you get started, you must find companies that can offer you a great deal. After all, if you’re opening a restaurant, there are many startup costs and expenses. There are renovations, equipment, supplies, and more. And while money might be tight right now, that doesn’t mean your business should suffer.
That said, partnering with suppliers and vendors is one of the smartest things you can do because it saves your money in the long run. For example, if you order your boxes from one company instead of ordering from five different companies on your own (saving 0.5 cents per box), you could save $2 per day or $2,000 per year for just one product purchase! Multiply that by every purchase, and suddenly your savings amount to a massive sum of money each year.
This way of thinking applies to everything from napkins to food equipment like fryers and ovens; if you partner with suppliers and vendors early on, you could save yourself at the end of the day.
Schedule Your Time
As they say, time is money. And as long as you are making a good use of your time, you are going to find that this results in a much better chance of your restaurant cutting its costs. For one thing, it will mean you waste less on paying people to work hours they don’t need to work when everything is planned out well.
So, to that end, consider having a proper schedule. You can follow some 24 hour schedule for restaurants and see how you go from there. However you do it, this is bound to help you increase your profits considerably.
Hire Freelance Employees
One of the best ways to cut costs as a restaurant owner is by hiring freelance employees. Freelancing allows you to hire only for the additional help you need and pay only when required. This means that this route can save time and money in one fell swoop. You’ll also be able to avoid paying benefits or providing a 401(k).
The downside? You won’t have permanent staff, so if you’re not actively looking for employees or searching for freelancers, you’ll have to wait until business picks up again before getting any work done. However, with an increase in profit margins, this trade-off could be worth it.