By looking at food and labor costs and increasing efficiency, restaurants can better manage their operating costs.
Restaurants have a lot of factors to consider when finding the right financial balance to stay profitable, especially in today’s society. Between the minimum wage debate and the rising cost of food, brands are taking a look at their operating costs and finding ways to save.
According to a recent article in QSR Magazine, the first place brands look is their labor and food costs. The restaurant analytics firm Delaget says most brands keep their labor costs around 30 percent, including benefits and workers’ compensation insurance. Managing those costs goes hand-in-hand with managing food costs, which the company says should hover around the 27 to 28 percent range.
Increasing efficiency is another approach brands are taking to keep their operating costs in check. The Detroit-based fast casual concept Moo Cluck Moo, for example, deconstructed its back of the house processes to boost productivity and keep costs down. And Toppers Pizza, a Wisconsin-based quick service franchise, has its employees hand out fliers and oversee other advertising efforts when they’re not making pizza.
In an interview with QSR Magazine, Adam Oldenburg, corporate operations director for the Toppers, said, “It’s very effective, and it’s our culture. We recognize people every year for their topline sales efforts. All problems are solvable with sales.”
Click here to read the original QSR Magazine article.