This article focus on Ways to Reduce F&B Business overheads for the Singapore Market. Most of the contents stays relevant for F&B establishments all over the world. The next article will be on How to Increase Sales.  

Equipment Maintenance

Well maintain Equipment reduces future maintenance Expenditure

  • Wipe it dry the next time you see a patch of water on the stainless steel table. Never leave them overnight as they will cause rust in the best grade of stainless steel.
  • Thinking of replacing that old freezer with a brand new one? Maybe you can consider a pre-loved freezer to reduce the outlay. Some 2nd hand freezer could be just a couple years old and works as good as new. Don’t know where to find them? Click Here
  • Equipment maintenance is a job every kitchen staff has a responsibility So what if you just tell them that everyone must maintain the kitchen equipment, they will hear you but may not act. Do implement carrot and stick system to enforce it. There is a saying in chinese “针没刺肉, 不痛的”. It is not painful if the needle doesn’t prick the skin”

Outsourcing

The services you need without the hassle of doing

  • Dishwashing – It still voice down to the cost of outsourcing the services or to do it in-house. Different business have different cost for such a job. Typically outsourcing services can reduce your overall operating cost from 15-50%.
  • Central kitchenDo you have too many chefs to prepare a similar type of food? Why not outsource them to a central kitchen who are prepare them for you and you can just need to sell it. In a way, utilities and manpower cost will be reduced and profits remains.
  • Deliveries – Check your cost for deliveries and whether it’s still worth to do it in-house. You could potentially saves on parking, petrol, vehicle maintenance, driver salary, taxes and time just by outsourcing it.

Rental and GTO percentages

Your landlord is your business partner

  • Asking your landlord for reduced rental is as good as your customer asking you to charge lesser for every serving of food. Although that being said, there is still no harm in asking. Discuss with your landlord and see what they can offer you, sometimes it may not come in a manner of rental reduction but assistance in other forms like marketing or promotion for your business.
  • Some landlord take both rental and a percentage cut in your gross turn over in business, especially in Malls. Speak to them as well and discuss a package for you to continue your business.
 

Menu

Managing your menu is managing your cost

  • Trimming your menu of unpopular food is trimming your kitchen for better efficiency. Your chefs can focus better on other food which makes more profits for the restaurant. It also cuts down food wastages.
  • Frugality- Condiments are also cost. Serve the condiments when diners ask for it or have a fixed size portion to go along with the serving. Train your waiting staff to portion the condiments accordingly to the servings and not too excessive.
    • Caution: Be careful of the serving portion so your diners will think it is reasonable and not stingy.
  Click here for Part 1 – 25 Ways to Reduce F&B Business Overheads Other related Articles Starting F&B Business in Singapore

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