Explore the secret weapon to cut costs and increase your restaurant profits without compromising on food, dining, and service quality in this blog.

1. The Secret Sauce for Boosting Restaurant
Profits through Cost-Cutting
Running a restaurant business is inherently risky and capital-intensive
with a thin profit margin. Studies show that 60% of restaurants shut
down and 80% closed their operations in the first five years.
But what if you get a secret weapon that can keep you in the remaining
40% of the restaurants that keep printing money constantly? Well, you
want it. And here is your secret weapon to boost your profits and keep
your fuel every day - complete restaurant management software
In this blog, you will discover how this restaurant software management
can help you completely transform backend operations, provide data-
driven insights, automate mundane tasks, minimize costs, and give your
customers amazing experiences to stand out from the competition.
Let’s explore.
Yelowsoft is a leading restaurant management software solution provider.
You can go digital with us by turning your website into an online order-
taking platform. You can also launch your mobile app with your brand
name and logo on it in just a few days at a subscription-based price. If you
want to go online and 5x your profit, you can connect with our experts and
get a free consultation.
Streamline your supply chain and slash your food costs
Controlling costs is the key to running a profitable restaurant business.
An unorganized supply chain is one of the major reasons that makes a
hole in your profit earnings. Food ingredients, labor, and operations
expenses are some other key factors that eat up your chunk of revenues.

2. However, food delivery management software with robust inventory,
track reporting, and workforce management capabilities can help you
reign in these costs and enhance productivity.
Control inventories to minimize waste
Controlling your inventory effectively can help you minimize waste. By
tracking your inventory level, monitoring expiration dates, and
optimizing order quantities, you can reduce waste and save money.
Restaurant inventory management software is crucial to minimize your
food waste and improve your bottom line.
Benefits of on-demand delivery software for Restaurants:
• You can control inventories by tracking levels
• Alert your staff to low-stock
• Automate reordering processes
• Identify popular menu items
• And optimize inventory levels based on your customer demand

3. Track your ingredient-level usage with their prices
Tracking ingredient-level usage along with prices ensures profitability
and optimal inventory management. This information can help you set
prices for your various dishes, monitor waste and shrinkage, and identify
areas for cost savings.
Moreover, you can also make informed purchasing decisions, improve
recipe costing accuracy, and enhance your customer's satisfaction. But
doing all these manually is costly and still you won’t get the perfect track
report.
With Restaurant franchise management software, you can track the exact
quantity of each ingredient that will be used in the food preparation
along with their prices. For example: The software can track the daily
consumption of tomatoes, onion, oil, spices etc. and the cost per kg/liter
of these ingredients.
Key benefits allow you to:
• Monitor frequently and sparsely used ingredients more precisely
• Identify drastic changes in consumption of items from daily
cooking
• Calculate dish-level and total food costs accurately
• Know data trends over weeks reveal unusual spikes or drops to
investigate reasons
• Optimize procurement batches to control costs and minimize
wastage
Optimized procurement and ordering
Optimizing your procurement and ordering is essential to managing the
purchasing of goods and materials by a business or organization. The
goal here is to know if you have the product you need when you need it,
and at the best possible price while minimizing waste and reducing the
risk of stockouts.

4. The restaurant menu management software helps you get in-depth
visibility into frequent inventory usage patterns.
With our software, you can:
• Reorder inventory based on dynamic PAR levels instead of fixed
cycles
• Negotiate better rates with vendors through aggregate ordering
• Minimize stock-outs through analysis of historical data
Tighten menu planning decisions
The restaurant menu management software provides you with the data
of total sales and profits you make for each of the dishes on your menu.
For example, the software can reveal that vegetable biryani accounts for
20% of total sales while pasta salad contributes only 5%.
Key insights for smarter menu planning:
• Identify which dishes have the maximum demand to promote them
more
• Understand peak hours or seasons driving top sellers to plan
production
• Spot menu items with low sales to revise recipes or retire them
• With dish-level costs known, tweak ingredients in best-margin
dishes
• Introduce innovative options aligned with customer preferences
Squeeze More Value from Your Labor Spend
After food costs, labor is considered to be the second highest expense in
restaurants. Managing staff and labor costs is one of the biggest
challenges in running a successful business.

5. However, with some careful planning and the right tools, you can
optimize your labor spending to be more efficient, accurate, and cost-
effective. This allows you to get the most value for your labor dollars.
Schedule workers more efficiently
Scheduling your workers more efficiently can improve your restaurant's
productivity and reduce overall costs. With the food delivery dispatch
software, you can:
• Determine the optimal work schedule based on your employee
preferences, production requirements, and customer demands
• Prioritize tasks and allocate resources accordingly
• Automate scheduling and track performance
• Regularly review and adjust the schedule to identify areas for
improvement
For example, by scheduling more staff for Friday dinner rushes vs
Tuesday lunches, you can align labor spending with busier periods.
Forecast staffing needs accurately
Accurately forecasting the staffing needs allows you to plan and ensure
you have the necessary resources to operate efficiently. When you have

6. the best delivery management software, you can forecast staffing needs
based on historical data analysis, projections based on growth or
industry trends, and job vacancy rates.
Key benefit:
• You can stay on track and adapt to any change in demand
• Helps you avoid scenarios of being understaffed during peak hours
• You can make informed decisions about staffing and budgeting
• Improve the overall performance of your restaurant
Manage your labor size based on your sales
The number of your workers should match the sales and customers at
your restaurant. You need more cooks and servers, when sales are high.
And when sales are low, less staff is enough.
Performing these activities manually eats up your valuable time.
Automating your restaurant operations with the white label
software will help you adjust your labor budgets and staffing levels
based on your current sales data.
Analyze payroll costs
Payroll costs include what you spend on your workers' wages, benefits,
taxes and more. These are big expenses, so managing them wisely is key.
Saas-based food delivery software can help you break down and track
payroll spending over time in easy reports.
For example, you can compare payroll by week, month or year. Or
analyze costs by specific positions, like cooks vs servers. This data helps
you to spot places and save money.

7. Boost your back-office productivity
Performing your back-office operations like billing, paperwork, and
administration manually may seem boring to you. But, efficiency in these
tasks impacts your revenues, costs, and productivity.
By upgrading your outdated process with SAAS-based software
solutions, you can do more with less while reducing errors and expenses.
Automate your order-taking and payment-processing process
Manual ordering and payment which were bogging down your workers
in the absence of automated solutions can now be automated for faster
and smoother service.
Your customers can place orders themselves via kiosks inside your
premises and apps.
By leveraging food delivery app development services, you can create
your branded app and allow your customers to place orders at their
fingertips. The payment will also be cashless and will be processed
directly from the app itself.

8. Minimize billing errors and leakage
Billing mistakes and revenue leakage happen when your customers have
been charged with wrong amounts. It could be due to the server ringing
up the wrong food or missing adding sides/drinks.
The food delivery software helps you avoid these problems that lead to
losing money. When your customers order food right from your food
delivery application, payments are processed directly from it and reduce
the billing errors by 100%.
Benefits you can count on with food delivery app development are:
• Online ordering → software system minimizes human order entry
errors
• Integrated payment processing avoids partial/missed charges
• Reconciliation reports reveal inconsistencies for correction
• Closes gaps that lead to revenue leakage or incorrect accounting
Save your administrative time and cost
Handling payroll, inventory, scheduling and other operational tasks
takes you away from your customers and costs administrative dollars.
Food delivery service software centralizes these functions and helps you
to reduce manual efforts.
Benefits you can consider are:
• Reduces manual processes with automated payroll, inventory and
scheduling
• Cuts time needed for administrative tasks
• You get insights without lengthy data compilation
• Saves you money on administrative roles over time

9. Leverage data insights for smarter decisions
In the old days when there were no technological advancements, you
may be relying on intuition and basic sales data to operate. But now, only
those who are not using restaurant franchise management software, are
making their business decisions based on the assumptions.
This usually results in the loss of customers and profit. Rest who are
using are driving better decisions with real intelligence.
Get actionable reports across your operations
Restaurant software consolidates all operational data into intuitive
reporting dashboards. It covers labor, inventory, sales and more.
For example, you can compare food costs among your franchises to
quickly identify waste issues. You can also improve scheduling by
evaluating server productivity by meal period.

10. Identify your improvement areas through trends
Granular reports from the software help you get insights over time. If
your Friday night sales are down over several weeks, you can easily
identify the possible reasons.
Drive strategy with metrics monitoring
With the software at your side, you can track key metrics like profit
margins, customer wait times and marketing costs over time to make a
strategy.
For example, you notice online ordering has grown to account for 20% of
sales. This indicates bigger investments in digital marketing and website
improvements could be wise.
Deliver excellent customer experiences
Building customer loyalty and delight drives repeat business and word-
of-mouth for you. Yet keeping guests happy with great food and service
isn’t enough these days. Your diners expect conveniences like online
ordering, reservations and personalized incentives too.

11. You can follow the below-mentioned steps to deliver an excellent
customer experience.
Rollout loyalty programs
By organizing loyalty programs for your restaurant customers, you can
incentivize them to keep coming back to your restaurant. It helps you
build customer loyalty and increase repeat business.
Reliable software for restaurant management can help you to identify
VIP guests, understand their ordering behavior, customize experience
and reward loyalty.
Offer your customers online/mobile ordering
Allowing your customers to order food online, on your restaurant’s
mobile app, or via delivery services boost your sales.
When you have Restaurant software, you can seamlessly enable these
channels. The benefits it drives are:
• Direct online/mobile orders minimize your manual mistakes
• Orders get prepared for scheduled pickup or delivery times
• Cater to guests who prefer to dine from home or the office
Improve your customer retention and lifetime value
As a restaurant owner, your goal is to have guests who visit frequently
and spend more over time with your brand. This builds loyalty and
recurring revenue. Restaurant software can track customer patterns and
help you retain customers.
The software helps you with:
• Identifying high-value and frequent diners to offer VIP service
• Targeted promotions to incentivize customer retention
• Special events and offers drive incremental revenue

12. • Automated marketing increases lifetime value
Conclusion
Restaurants have huge potential for becoming more efficient and
successful with the right technology. Modern restaurant management
software weaves together point of sale, staff and inventory management,
reservations, CRM, and insightful analytics into one intelligent solution.
By leveraging these integrated tools rather than disjointed spreadsheets
and manual processes, you can gain sharper operational control and
superior customer care.
Staff productivity grows, costs shrink and profit-boosting data leads to
faster data-driven decisions. Bottom line results expand with the same
great food and service, just smarter backend power.