Running a restaurant is tough, and even successful businesses often bleed money through unnoticed leaks. Here are the five most common profit killers—and how to plug them fast: 1. Food Waste (5-15% of Revenue)
1. Food Waste (5-15% of Revenue) The Problem: Over-prepping, spoilage, and incorrect orders drain profits. The Fix: Implement daily waste tracking sheets Train staff on proper portioning Adjust orders based on sales data, not guesswork
2. Inefficient Staff Scheduling (Up to 30% Labor Waste) The Problem: Overstaffing slow shifts or understaffing rushes. The Fix: Use forecasting tools (like 7Shifts) to match labor to demand Cross-train employees for flexible roles
3. Credit Card Fees ($10K+/Year for Small Restaurants) The Problem: 3% per transaction adds up fast. The Fix: Negotiate lower rates with providers Offer cash discounts (e.g., "5% off for cash payments")
4. Energy Overuse (7-10% of Operating Costs) The Problem: HVAC and kitchen equipment running unnecessarily. The Fix: Install programmable thermostats Train staff to power down idle equipment
5. Over-Ordering Inventory (Ties Up 20%+ Cash Flow) The Problem: Money sitting unused on shelves. The Fix: Adopt just-in-time ordering Set par levels for every ingredient
One Client’s Result
After fixing these five areas, The Harbor Grill freed up $78,000/year—without changing their menu or prices.
){kind=link}