This document provides tips for controlling costs in order to increase profits for a restaurant business. It emphasizes the importance of inventory control and using a food costing program to track inventory, monitor costs, and reduce food costs by 8% or more. Additionally, it recommends considering leasing equipment to control startup costs, utilizing efficient point-of-sale and accounting systems, and advertising through word-of-mouth and local options to test effectiveness. Controlling costs and increasing efficiency are keys to long term restaurant success.

1. Restaurant business plan sample free
The biggest factor in your restaurant's success will be how well you control your
restaurant's expenses. This includes food, labor, advertising, equipment, management,
rent, operating costs and the rest of your overhead costs. Here are some tips for
controlling your costs to increase your profits.
Inventory Control
How well you control your inventory may well be the most important aspect deciding
your restaurant's future. If you allow costs to spiral out of control and make poor
decisions as far as choosing what menu items to serve and their ingredients, your
restaurant won't last very long. However, you can maintain stringent control over your
inventory and costs with a proper food costing and inventory program. This type of
program will allow you to keep track of your inventory, monitor item pricing and
specification, verify prices, check invoices against orders, create recipe cards, monitor
taste and yield, scale recipes, cost your menu by category, evaluate item popularity and
profit margin, calculate actual food and bar costs and compare actual versus projected
costs. A good costing software program will allow you to reduce your food costs by 8%
or even more.
Leasing
Leasing your restaurant equipment may be a good option for some restaurants. Leasing
does not require large down payments and the lease can be extended for long periods of
time. Leasing may be advantageous to help control the startup costs of a new restaurant.
Efficiency
The proper management of your restaurant will also be key to your restaurant's success.
You will need to make use of a professional point of sale system, as well as an
accounting system. Automation in the ordering process can increase efficiency and
reduce confusion for employees. The more efficient your restaurant runs, the better
chance at success you'll have.
Advertising
Word of mouth is said to be the best advertising you can get, it's also free! Offering great
food and great service is the best way to attract great word of mouth advertising and loyal
customers, but when getting started, you shouldn't ignore other methods of advertising
including the old, reliable yellow pages, large Internet directories, local circulars and
newspapers, coupon offers and more local advertising options. Test all paid advertising

2. carefully to make sure you're getting your money's worth, and if it's not bringing in
business, drop it.
In summary, control those costs and get efficient and you will be on the road to long term
restaurant success.
http://restaurantebooks.info – You can download free ebooks about: restaurant
management forms, restaurant business plan, restaurant marketing plan sample,
restaurant startup guide…