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Effective management of raw material costs for increased profitability

Effective management of raw material costs for increased profitability

Apr 6, 2024

food material efficiency
food material efficiency
food material efficiency

Carefully managing raw material costs is crucial to the profitability of restaurants. By following a well-thought-out raw material calculation and pricing model, restaurants can ensure that they maintain their target raw material cost percentage. Many restaurants aim to keep the raw material cost below 25% of the selling price.

The difference between main products and add-on sales products

It is important to distinguish between main products such as main courses and wine, which most guests order, and products intended for add-on sales. While main products should adhere to a strict raw material cost percentage, add-on sales products such as pre-dinner drinks, appetizers, desserts, and coffee drinks can offer more flexibility.

Optimizing add-on sales for better results

Add-on sales not only increase the restaurant's total turnover but also have a positive effect on the staff percentage by increasing the average check per guest. Products with higher raw material cost percentage in this category may be allowed as they contribute to a larger total turnover without requiring proportionally more staff.

How Guestrix can help

Guestrix offers restaurant managers and their teams the opportunity to set clear goals for add-on sales and easily follow up on these goals. The platform provides insights to help identify areas for improvement and measure success in add-on sales efforts.

Training and motivating the staff

Training the staff in add-on sales techniques and creating incentive programs that encourage add-on sales is important. This not only improves the customer experience but also increases the restaurant's profitability.

Concluding thoughts

By differentiating the calculation for main products and add-on sales products, and effectively utilizing tools like Guestrix for goal setting and monitoring, restaurants can optimize their pricing and improve their profitability. Embracing these strategies enables restaurants to sustainably develop their business with profitability.

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