Inventory costs are rising as inflation reaches historic highs across the nation. According to experts like Nils Larsen, restaurants are especially vulnerable to price increases, so they must be vigilant about managing costs.
5 Techniques To Cut Inventory Costs Nils Larsen
Many restaurant managers and owners struggle to find ways to cut costs without alienating customers. Larsen manager suggests maintaining open lines of communication with staff and customers to reduce confusion or frustration. The expert also recommends five strategies for reducing inventory costs during times of inflation.
1. Grow Your Herbs and Produce
One way of cutting costs is to grow your produce or herbs. Some restaurants have space available for an herb garden and some vegetable plants. However, if your restaurant does not have the room to grow produce, Nils Larsen says to consider establishing a partnership with a local grower or farmer. Many farmers will even rent parts of their land, allowing you to grow what you need.
2. Buy Local
If you do not have the resources or the time to grow your own food, consider buying locally. Many restaurants spend more than they need to by having food delivered from out of state or out of the city. You can often find local growers that offer fresher and cheaper products. Produce is not the only thing you can buy locally; you can also buy meat, baked goods, and other inventory items.
3. Buy in Bulk When Possible
Larsen also suggests buying in bulk whenever possible. With inflation, you never know when kitchen staples, food, or restaurant necessities will increase in price. Buying in bulk can allow you to save a few dollars here or there, which adds up over a year.
4. Control Portions
American restaurants are prone to offering oversized portions. With rising costs, it is time to rethink portion size and control. You should train your staff about portion sizes of meals and drinks, especially if your restaurant has a bar. Serving smaller portions will allow you to stretch your inventory.
5. Lighten the Menu
Another common characteristic of American restaurants is an extensive menu. You do not need 20 different menu options for a successful business. If your menu is extensive, consider cutting back. You might want to consider only having a few options for breakfast, lunch, and dinner. Not only does cutting the size of your menu help with costs, but it also helps with kitchen efficiency.
As an accomplished financial manager, Nils Larsen understands the importance of cutting costs during times of inflation. He also knows that improving inventory practices and limiting menu size can improve restaurant performance and efficiency. Whether you only make temporary changes to weather the current inflation storm or choose to make permanent business changes, the above tips can help you manage inventory through trying fiscal times.
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