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How Do I Reduce Material Costs?

Practical strategies for reducing material costs: from precise calculation to stock optimization.

1

Conduct an As-Is Analysis

Before you optimize, you need to know where you stand. Calculate your current food cost: Food Cost (%) = Food Purchases / Net Revenue × 100. Analyze food costs per dish and per product group. This quickly identifies the biggest cost drivers. Often it's only a few ingredients or dishes that drive up food costs.

2

Optimize Purchasing

Regularly compare prices from your suppliers. Often there are significant price differences for the same quality. Use seasonal products that are cheaper and fresher. Negotiate framework contracts for your main ingredients. Watch minimum order quantities and delivery costs – sometimes it pays to order less frequently but in larger quantities.

3

Minimize Storage and Shrinkage

Spoiled goods is wasted money. Consistently implement the First-In-First-Out (FIFO) principle. Regularly check storage temperatures and expiry dates. Document shrinkage and analyze the causes. Often, better storage and smaller order quantities can reduce shrinkage by 20-30%.

4

Optimize Recipes

Critically review your recipes: Are there cheaper alternatives for expensive ingredients without compromising quality? Can trimmings and scraps be better utilized (e.g. for stocks, soups, staff meals)? Adjust portion sizes if plates are regularly not eaten clean.

5

Continuous Controlling

Food cost optimization is not a one-time project but an ongoing process. Conduct monthly inventories and compare target versus actual consumption. Set target values per product group and react to deviations. With digital tools like EasyKoch Cloud, you always have all metrics in view and can identify negative trends early.

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