Are you wondering what controllable expenses are in a restaurant? Well, controllable costs are expenses that can easily be influenced or adjusted by someone. These are the costs that can be either decreased or increased on a sole business decision.
An example of this is that turning the lights off at night can control your electricity. If the person who closes forgets this simple task, the cost goes up. However, if they remember, the cost will stay down.
Usually, restaurants have a massive amount of overhead costs as well as an equally massive potential for waste. So, what are some of the controllable expenses in a restaurant and how can you keep them down?
Let’s take a look at three of the top controllable expenses in a restaurant and how you can deal with them in the best way possible.
Food costs are one of the biggest controllable costs in any restaurant around the world. As a restaurant owner, it is crucial to consistently look at, analyze, and negotiate with vendors in order to ensure that you are getting the best price possible. Keep in mind that vendor’s pricing will vary between locations.
You should also speak to the back of house about cutting and prepping techniques that keep food items fresher for longer.
Next, we will take a look at electricity. This is yet another massive, often hidden, restaurant expense. While you may be able to limit some appliances and wasteful habits, it is a good idea to consider switching to a cheaper supplier in order to save.
Research must be done in order to do this, but it could save you up to 10% of your energy costs.
Late Fees, Tickets, and Fines
Keep in mind, fines are a very clear example of drops in a bucket. While one probably won’t seem like a lot, they can very quickly add up over time without you even noticing. Some examples of fees you may see as an owner or operator of a restaurant are:
- Fines related to health code violations
- License and permit-related late fees
- Fines for over-serving patrons
- Parking tickets
- Noise complaints
- Loan payments
- Late fees from gas, water, or internet bills
Though, with a little planning, staff training, and organization, you can limit or completely rid yourself of any of these things. With only a few minutes of planning, you can save hundreds of dollars.
The Bottom Line
All of the costs listed above, as well as all of the approaches explained above, aren’t just a set of magic fixes for you to rely on. It is also important to note that controllable costs will differ from restaurant to restaurant. While food costs will be the main concern for many businesses, others will struggle with their electricity bills.
When it comes to controllable expenses, one size does not fit all. It is crucial to focus on how you can reduce overhead in your restaurant by optimizing your approach to controllable costs. Restaurant bookkeeping services can often make a massive difference to have a restaurant operates.