Do you feel that your establishment is not earning as much as it should, and the list of expenses seems endless? This is frustrating, but unfortunately a common phenomenon in the gastronomy industry. One of the most frequent reasons for failure in this business is improper cost management, and a restaurant, as you well know, generates a lot of them.
At Bon Vivant Advisory (BVA), we know that the key to success is not just reducing expenses, but above all optimal allocation of resources. The correct structure of fixed and variable costs in relation to achieved revenues is the foundation of a stable and profitable business. Key Cost Areas in Gastronomy
Costs associated with running a restaurant are concentrated around three main areas:
What is cost optimization?
We often hear about cost optimization , but it's important to understand that it's not just about cutting expenses.
It's a much broader concept that means proper allocation of resources in a given area to bring the greatest possible value and profit. Sometimes optimization can even mean increasing expenses in one area to achieve much greater savings or revenue growth in another. From our experience, seemingly small changes in cost management can lead to significant savings and increased profitability on an annual basis. That's why cost management is one of the most frequently chosen services by our clients – because we see real results!
At Bon Vivant Advisory (BVA), we help you look at your finances from a new perspective. Thanks to our experience and analytical approach:
Don't let high costs hinder the development of your business. Contact Bon Vivant Advisory (BVA) and find out how we can help you turn cost challenges into real profits.
Consultation: 1h / 250 PLN net. The first consultation (1h) is free.
Frequently Asked Questions
Is cost management only about cutting expenses? No, cost management is a much broader concept than just expense reduction. While reducing inefficient costs is part of it, true optimization involves proper allocation of resources in areas that will bring the greatest value and profit to your restaurant. Sometimes it even means increasing investment in one area (e.g., better quality ingredients, staff training) if, in the long run, this translates into higher profits, better product quality, or greater guest satisfaction. It's about efficiency and strategic use of every zloty.
Where to start cost optimization in my restaurant? Start with a thorough analysis of your current cost structure. It is crucial to understand where your money is being spent and in what proportions. Focus on three main areas: labor costs, food cost/beverage cost, and operating expenses. Only after identifying the largest cost items and their interrelationships can you move on to finding areas for optimization. Often, seemingly small changes in inventory management or work schedules can bring surprising results over the year.
What tools can help me control costs? There are many tools that can support you in effective cost management. These include specialized warehouse and sales management programs (POS), which allow real-time monitoring of product consumption and inventory levels. Work schedule planning systems that take into account sales forecasts are also useful, helping to optimize labor costs. Furthermore, regular and precise inventories/stocktakes, as well as food cost analysis for each menu item, are the foundation of effective expense control.
How often should I analyze and optimize costs in my establishment? Cost management is an ongoing process, not a one-time action. We recommend regular, preferably monthly or quarterly, cost analysis to quickly react to any deviations and market changes. Inventories should be carried out regularly, e.g., weekly or bi-weekly, to have ongoing control over inventory. The dynamic nature of the gastronomy industry requires constant vigilance and flexibility in approach to finances to maintain profitability at the desired level.
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