Managing a restaurant involves so many moving parts, including sourcing high-quality ingredients, purchasing a seemingly endless list of supplies, managing staffing and scheduling, and budgeting for a profitable restaurant – all within a set budget.
Every restaurant must aim to spend low and earn high. But restaurant finances are notoriously complex, with so many types of expenses to manage:
- Dining and kitchen supplies
- Commercial real estate
- Utilities
- Maintenance
- Insurance
- Marketing
- Payroll
- And more
Restaurant budgeting can be head-scratching and very time-consuming. Luckily, technology has introduced various tools to help with financing. One example is our restaurant remote management service.
Budgeting for a Profitable Restaurant
The formula for any profitable business is simple: spend less than the amount you earn. With so many expenses to run a restaurant like a well-oiled machine, this may seem incredibly challenging.
Here are some best practices to handle a restaurant budget and ensure profitability:
1. Keep Track of All Expenses
List all your expenses, especially the fixed costs or those that will remain the same each month and are easy to track, such as rent, payroll, insurance, etc.
In contrast, variable costs like ingredients and equipment repairs can vary drastically. A critical element of effective budgeting is managing and tracking these expenses.
2. Pay Dues on Time
This is one reason why using TRG’s restaurant remote management Service is important—a robust accounting system will notify managers about all upcoming and pending financial obligations. These include payroll, utilities, supplier payments, and other amounts payable.
Failure to pay on time will lead to fines and penalties, which are unnecessary expenses.
3. Keep Track of All Inventory
Food costs cover around 28% and 35% of overall restaurant expenses. Failure to manage food inventory can lead to significant financial losses. A robust management system will help restaurants manage the use, storage, and replenishment of all ingredients, ensuring they will be used before going bad.
An automated system will also help prevent employee theft, which is the cause of 75% of all inventory shortages.
What Is Remote Management in Restaurants?
Restaurant management is the process of overseeing the everyday operations of the business. However, the owner or manager may not be on-site all the time, so a remote restaurant management system is needed to ensure efficient operations.
Even when managers or owners are in another country, they can still keep an eye on their restaurant with ease. A remote system becomes even more valuable when the restaurant expands, and the owner has to manage multiple franchises or locations.
Remote management systems automate tasks to increase efficiency and reduce the risk of errors. Most importantly, these systems help streamline the budgeting process and inventory. It becomes easier to track cash flow and see whether the enterprise is in the red.
When this happens, you can easily adjust your strategy to spend less and gain more customers.
Conclusion
Running a business is quite stressful, and operating a restaurant involves a lot of moving parts that you may need help to keep up with. TRG Consulting can ease the burden for you.
We provide the following services:
- Startup restaurant consulting
- Restaurant business plans
- Restaurant kitchen and bar design
- Restaurant management
Get a free quote today!
