The past 24 months have been tough on the QSR market. The chief problem is rising expenditure putting the squeeze on margins – and its relentless.
The past 24 months have been tough on the QSR market. The chief problem is rising expenditure putting the squeeze on margins – and its relentless.
In this article, we look at practical ways operators can target savings opportunities in order to protect their bottom-line.
Save on Cost of Goods Sold (COGS): Approx 7%:
For QSR chains, theoretical food and beverage costs can represent around 32% of total expenditure. But this can be reduced to 25%, as demonstrated by restaurant operators around the world using the new breed of restaurant control solutions from Syrve. Here’s how it’s done …
Tackle waste: save 4-6%:
By implementing real-time controls, every ingredient can be tracked from arrival. You can check your inventory at any of your sites, moment by moment. Your restaurant control system will tell you what needs ordering —nothing more, nothing less. In fact, it’ll order for you automatically if you wish. Prep plans are created using artificial intelligence-based sales forecasts. Portion sizes are regulated carefully too. Every human action is guided and measured.
Monitor supplier prices & optimise recipes: save 1-2%:
Even if your staff don’t remember how much they normally pay for supplies — your restaurant control system can act as your financial watchdog. There’s zero chance of prices being hiked by a supplier and then accepted without your approval. You’ll also get a sense of the cost of ingredients for each dish and how to make them more profitably with some adjustments, so your menu delivers stronger margins
Reduce payroll costs: save 2%
Employee expenditure may seem too difficult to address. But with a restaurant control system like Syrve, you’ve got the right tools to lower your overall labour costs by 2-4% — without impacting quality or customer service. There are three areas to focus on right away:
Free-up management time:
Your managers can avoid spending hours trapped in the back office pouring over spreadsheets — and more time adding real value elsewhere. The system is optimised to save them time by automating and optimising virtually every aspect of staff management, from storing staff contracts to maintaining attendance records.
Schedule smarter:
Using accurate financial forecasts, your restaurant control system knows precisely those the days and hours when you’ll need more people on duty — so staff won’t be sitting idly during quiet moments or unable to serve enough customers at busy times. With a powerful schedule builder, you can also copy reoccurring shifts and set shift overlaps to provide the right levels of cover.
Incentivise staff:
It’s possible to increase staff productivity dramatically with incentives programmes within your restaurant control system — for front and back of house teams. For example, a waiter could receive a percentage of sales for a particular item, while a chef could receive a bonus for sales of a profitable new dish. Behind it all, you’re sharpening their performance with incentive programs to boost your bottom line.
With the right restaurant control system, any expenditure across your business becomes visible — from the cost of non-food consumables, through to staff uniforms, in-store repairsand IT maintenance. There’s no room for unusual, one-off costs to slip under the radar.
With COGS, payroll and other costs under control, your margin is protected.
