Restaurant managers have to stay on top of their establishment to keep costs under control. This means buying extra anti-fatigue mats and worker safety gear to keep injuries at bay and costly accidents down. Managers may even come up with innovative ways to reduce costs like renegotiating with their suppliers and closely managing inventory levels.
However, what happens when the cost for food rises? According to Zacks, food prices are on the rise, making the cost of managing a restaurant much greater than in previous times. The news provider reports that food costs account for nearly one-third of total restaurant costs, meaning that the smallest increases in food prices can lead to even smaller margins quickly.
The news provider points to the drought in California as one of the ways the food industry has suffered from reduced products, thus causing price inflation.
According to QSR Magazine, in order to keep costs down, restaurant managers need to work on their relationships with suppliers. By being a good customer and paying promptly and rarely asking for discounts, restaurant managers can develop a rapport with their suppliers, which could lead to saving money down the line if crop prices begin to increase. This could also ensure that suppliers provide the managers with the best available food products.
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