How to Keep Menu Costs Down

Menu costs. It is estimated that the catering sector makes 6,000,000,000 euros in turnover, however for every euro earned, more than half is spent on labour, supplies and repairs. So, it's no surprise that restaurants aren't known for their wide profit margins. Keeping menu costs down can translate into significant savings over time for any restaurant. By carefully monitoring food costs, portion sizes and kitchen waste you can save money.

Menu costs

By evaluating all these elements it is possible to create a menu that is well organised, correct and inclusive. In short, for the success of a restaurant business it is necessary to evaluate a series of issues so that everything is well prepared. Making this type of process successful is not very simple. A careful basic analysis of numerous issues needs to be carried out. First of all you need to evaluate what type of product you want to provide to your customers. Starting from this discussion it is possible to choose the best price for each dish. Furthermore, carrying out a correct analysis of the competition in that specific sector could be equally functional.

Contain menu costs: Understand how Food Costs work

Menu costs

The cost of food refers to how much a restaurant pays for it, before any additional costs of preparing and serving are added to the final price. For example, a single egg may cost five cents, but that doesn't mean a restaurant can sell an egg for five cents.

Or you can decide to double its cost and sell it for 10 cents. In order to make a profit the cost of that egg needs to exceed not only its food cost, but also its preparation costs. All of these costs must be covered through every restaurant sale, which is why food cost is so important. Some items, such as eggs and potatoes have large food costs; they cost very little to purchase and can be sold for a much higher price. Others, like fresh meat or fish are much more expensive. Based on the basic products that are used to prepare the dishes of the restaurant in question, it is possible to carry out a complete analysis of all the rules for organizing a perfect and functional menu.

The general rule is that the cost of food should not exceed 30% of the menu price.

Menu costs

Keep portion sizes under control

Another area that restaurants can save money is through portion control. Ensuring that each meal served has a consistent size. Using uniformly sized plates for each menu item can also help parties stay consistent. If you are opening a new restaurant, creating a cooking manual with details on menu portions will help the staff. The size of the portions is equally functional to the organization of the menu as well as to the setting of various prices for each dish. The advice is to provide portions that are never too large or too small.

Minimize Kitchen Waste

Every ingredient in a restaurant kitchen should be used in at least two or three menu items. This would avoid unnecessary waste. It is in fact necessary to also think about this type of discussion. For example, if you offer a California burger with fresh avocado, you should incorporate avocado into other dishes on the menu. If you don't, you risk a case of avocado. In this way there will be no waste and the costs of purchasing the product in question, especially if it is more expensive than others, will be recovered.