There are plenty of overheads in your business that you’re unable to change. But two big areas you can attack are your produce costs and staff wages.
In terms of your produce, shop around, and make sure you’re getting the best deal. A lot of chefs get stuck on using the same suppliers without looking around; why not use multiple suppliers? Always negotiate the given prices. If you have any kind of volume, your supplier will always be happy to negotiate.
When it comes to wages, it’s all about service structure: a business needs to learn to operate on its bare minimum. There is a move to casual eating, with really simple staffing structures; fine dining takes a lot of staff.
When you look at the added costs of running a business, everything is going up. Gas and electricity costs have doubled in the last eight years!
Businesses cannot ‘absorb’ the costs of these changes, but it fundamentally changes how we operate.
For advice on how to cut costs and grow your business, visit www.silverchef.com.au/resources