Shot #175 - Navigating the Costs of Running a Restaurant in 2024

Update: 2024-10-08

Description

In this episode, I give you five actionable ways to saving costs in the current restaurant market. They are listed below for reference.

Here are five solutions for "Navigating the Costs of Running a Restaurant in 2024"

1. Cut Smart, Not Cheap

You gotta trim the fat, but don’t slice into the meat. Food costs are skyrocketing with inflation, but don’t start cutting corners on quality. Instead, rework the menu. Go for dishes that maximize the ingredients you already have. Think of it like a cocktail—sometimes fewer ingredients, done right, deliver a bigger punch. Seasonal menus are key; keep it fresh and local to avoid getting hit by long-haul transportation costs.

2. Labor: Cross-Train or Die

Labor is where most restaurants bleed out, so get creative. Cross-train your staff to handle multiple roles. That bartender? Make sure they can jump in as a barback or even help the host. It builds a team with better flexibility, makes scheduling easier, and keeps the labor costs down without burning out your people. Plus, they feel more invested in the overall operations—it’s a win-win.

3. Tech Up, Save Big

It's 2024—time to embrace tech. Automation for inventory management and ordering can save you cash on human error and overbuying. POS systems are getting smarter, so leverage them to track what's selling and when to reduce waste. Even energy-saving tech, like LED lighting and smart thermostats, can make a noticeable dent in those overhead costs without sacrificing the guest experience.

4. Negotiate Like a Shark

Don’t be afraid to flex on your suppliers. You’re running a business, not a charity. Talk to your vendors and negotiate better terms—long-term partnerships, bulk deals, or even shared cost savings. If they can’t give you what you need, it might be time to look elsewhere. Loyalty is great, but not at the cost of your bottom line.

5. Community = Free Marketing

Engage with your community and tap into local collaborations. Host events with local businesses or breweries that bring in a crowd without costing you an arm and a leg on marketing. These partnerships can help draw traffic without the ad spend, and the word-of-mouth marketing is priceless. Keep your brand visible but lean on your community to share the load.

These strategies are all about balancing the need to tighten the purse strings without suffocating your restaurant’s vibe. You’ve gotta keep the guest experience solid while playing the game smart behind the scenes.

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