Boost Your Bottom Line: Tips for Increasing Restaurant Profitability

Running a successful restaurant is not solely about the quality of food served. To ensure your restaurant stays profitable and achieves long-term success, you must prioritise revenue generation, and cost control, and utilise forecasting tools. This article will delve into crucial tips that you can implement to increase profitability, reduce costs, retain customers, and effectively train your staff. By following these tips, you can improve your restaurant's financial stability and thrive in the highly competitive restaurant industry.


Increase Revenue Generation

A. Menu Pricing

One of the most critical factors in restaurant profitability is menu pricing. To set the right prices, you need to consider the cost of ingredients, labour, and overhead, as well as your target profit margin. Use menu engineering techniques to identify your most profitable dishes and adjust your pricing accordingly. Ensuring menu pricing is efficient is essential for good revenue, read our in-depth guide to mastering menu pricing

B. Online Ordering

Online ordering can significantly increase your revenue by expanding your reach and convenience. Use a mobile ordering platform to offer easy-to-use ordering options and streamline the process for both you and your customers.

C. Upselling

Encourage your staff to upsell by training them to suggest add-ons, upgrades, and complimentary items. This will increase your average check size and revenue per customer. Upsells can also be utilised with self-serve options such as a Mobile Ordering option or even a Kiosk.


09.05.23 Profitability - Kiosk


Control Your Costs

A. Food Waste Management

Food waste can eat into your profits quickly. Implementing strategies to reduce food waste, such as portion control, inventory management, and donation programs, can help you save money and reduce your environmental impact.

B. Stock Management

Proper stock management can help you control your food costs by minimising waste, ensuring you have the necessary ingredients on hand, and tracking your usage and profitability. Utilising a good Stock Management system can help you ensure you have accurate stock, read about the importance of Mastering Inventory Accuracy

Stock Management Image

C. Energy Efficiency

Improving energy efficiency can help you save money on utility bills, reduce your environmental impact, and extend the life of your equipment. Some strategies include switching to LED lighting, investing in energy-efficient equipment, and training staff on energy-saving practices.


Forecasting & Budgeting

While it's impossible to predict with certainty how the restaurant industry and broader economy will develop in 2023, ongoing trends will certainly have an impact on your business. Restaurant sales forecasting can be a useful tool for estimating your Key Performance Indicators (KPIs) and sales on a weekly and monthly basis. It allows you to anticipate changes in customer traffic patterns, menu items, and product mixes, which are subject to fluctuation throughout the year based on trends and the availability/pricing of products. By leveraging current trends and historical sales data, forecasting can help inform smarter scheduling and purchasing decisions that can drive your bottom line.

09.05.23 Profitability - Reports


The past few years have presented significant challenges for the restaurant industry, and merely keeping your locations afloat can be considered a success. However, as we cautiously return to normalcy in 2023, restaurants must be adaptable and evolve many aspects of their business to thrive. This includes regularly reviewing food and labour costs, making incremental menu engineering changes to test their impact, and researching and investing in new tools and technologies for your team. By implementing these strategies and tips, you can position your restaurant for success in 2023 and beyond.

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