Eight checks to cut food and wage costs, and boost sales

Running a successful restaurant or café isn’t just about serving great food—it’s also about keeping a close eye on the details that impact your bottom line. From managing inventory and monitoring portion sizes, regular checks can uncover opportunities to control costs, prevent waste, and maximise revenue.  

If you don’t make checking part of your routine, it’s easy for inefficiencies to creep in—whether it’s excess food spoilage, unaccounted-for losses, or missed opportunities to increase sales. In this article, we’ll explore eight checks you should be performing in your hospitality business and how they can help you cut costs while boosting profitability. 

But before we dive in, here’s one important request: stop trying to do it all yourself! If these checks aren’t happening consistently, it’s probably because you’re too busy. Instead, delegate. Assign a supervisor or cook to help gather the data you need so you can focus on taking action on whatever your investigations uncover.

Many staff members would see these extra responsibilities as an opportunity, whereas for you, they’re just another burden. Look for someone who’s detail-oriented and comfortable with numbers—accuracy matters. And before handing over the responsibility, check their work a few times to be sure they’re capable of ‘owning’ it.  

1. Weak spots on your menu 

One of the easiest ways to boost sales and cut costs is by regularly checking your POS system to identify slow-moving items. If certain menu items aren’t selling well, they’re likely tying up inventory, increasing waste, and taking up valuable space on your menu. By reviewing sales reports, you can pinpoint which dishes or drinks are underperforming and act before they become a drain on your profits.

Once you’ve identified poor sellers, don’t just remove them immediately—first, figure out why they’re struggling. Are they priced too high? Do customers even know they exist? Are staff members recommending them? Consider tweaking the recipe, adjusting the price, or giving the item a fresh description on the menu. You could also run a short-term promotion, train staff to upsell it, or feature it as a special to see if it gains traction. If it still doesn’t perform, it may be time to replace it with something more profitable. 

2. Menu winners

Just as it’s important to identify slow-moving items, keeping a close eye on your best-sellers can help you maximise profits. Your POS system can reveal which menu items consistently bring in the most sales, giving you a clear picture of what your customers love. But are you making the most of these popular dishes? If they’re flying out the door, there may be opportunities to increase their profitability even further.

Start by reviewing the cost of ingredients - can you slightly adjust the portion size or swap an expensive component for a more cost-effective alternative without sacrificing quality? Consider increasing the price if demand is high and customers clearly see value in the item. You can also feature best-sellers more prominently on your menu, encourage staff to upsell them, or bundle them with high-margin sides or drinks. By leveraging what’s already working, you can drive even more revenue while keeping customers happy. 

3. Cost of protein items  

Protein is often the most expensive component of any dish, so keeping a close eye on its cost is crucial for maintaining profitability. Prices for meat, seafood, and even plant-based proteins can fluctuate due to supply chain issues, seasonality, and market demand. If you’re not regularly reviewing how these changes impact your profit margins, you could be selling dishes at a much lower margin than expected—or even at a loss. 

Start by checking the current cost of protein items in your recipes and comparing them to when you first priced the dish. If costs have increased, consider adjusting portion sizes, switching to a more affordable supplier, or exploring alternative cuts or types of protein that offer better value. You might also need to raise menu prices slightly, especially on best-selling items, while ensuring customers still perceive good value.  

Another strategy is bundling protein dishes with high-margin sides or add-ons to help balance the overall cost. Regularly reviewing and adjusting for protein price fluctuations will help keep your menu profitable without compromising quality. 

4. Slow moving stock  

Regularly stocktaking your slow-moving inventory is essential to controlling costs and preventing unnecessary losses. Items like liquor, specialty ingredients, and premium wines often sit on the shelf for longer periods, making them prime targets for wastage, over-pouring, or even staff helping themselves if they know these items aren’t being closely monitored. Without frequent checks, you could be losing money without even realising it.

To stay on top of this, conduct routine stocktakes on slower-moving items and compare usage against sales records in your POS system. If stock levels don’t match up with what’s been sold, it’s time to investigate. Consider introducing portion control measures, such as jiggers for liquor pours, or adjusting recipes to incorporate underused ingredients. You might also need to train staff on the importance of minimising waste and keeping track of inventory properly. Regular monitoring sends a clear message that stock control is a priority, helping to reduce losses and improve overall profitability. 

5. Staff arriving late

Tardy employees might seem like a minor issue, but over time, it can have a serious impact on both profitability and team morale. When employees show up late, service slows down, customers wait longer, and other staff members have to pick up the slack—leading to frustration and potential burnout. On the financial side, paying for unproductive time and covering for missing staff can increase labour costs and reduce efficiency, directly eating into your bottom line. 

To stay on top of this, use modern employee management systems with digital sign-on features to track attendance accurately. Many platforms allow staff to clock in using mobile apps, biometric scanners, or POS-linked systems, ensuring that shifts start on time. Review timekeeping reports regularly to spot patterns of lateness and address them quickly. If certain employees are frequently late, have a conversation to understand the reason and set clear expectations.

You can also introduce incentives for punctuality or adjust scheduling to ensure smooth shift transitions. By actively managing attendance, you’ll improve efficiency, boost team morale, and maintain better control over labour costs. 

6. Shifts with highest wage cost  

Not all shifts are created equal—some may have higher wage costs without the sales to justify them. While there may be a valid reason for this, such as prep-heavy periods or necessary coverage during quieter times, it’s important to analyse whether higher wage costs are actually driving higher profitability. By reviewing wage costs against sales data, you can identify shifts where labour expenses are outpacing revenue and determine whether adjustments need to be made.

Take a closer look at shifts with inconsistent profitability—often, the difference comes down to who’s on duty. Some staff members are more efficient, better at upselling, or simply more engaged in delivering great service. If a particular shift consistently underperforms despite having the same wage costs as a more profitable one, it may be time to rework scheduling, provide additional training, or redistribute your best performers across shifts to balance results. Regularly tracking this data allows you to optimise staffing levels, ensuring you’re investing in labour where it delivers the best return. 

7. Sales of side orders and added extras 

Side orders and extras—like fries, salads, bread, and bottled water—might seem like small additions, but they play a huge role in profitability. These items typically have high margins, and increasing their sales can significantly boost revenue without adding much extra cost. However, if they’re not being consistently sold or suggested by staff, you could be missing out on easy profits. That’s why tracking how many extras are being added to orders is essential.

Use your POS system to monitor sales of side orders and identify any patterns. Are they selling well across all shifts, or only when certain staff are working? If extras aren’t being offered consistently, it may be time to provide upselling training for your team. Consider adjusting your menu layout to highlight profitable add-ons, bundling sides with mains, or even running promotions to encourage customers to order more. Regularly reviewing this data allows you to refine your approach, ensuring that these high-margin items contribute as much as possible to your bottom line. 

8. Social media and email activity 

Tracking your social media and email marketing performance isn’t just about engagement; it’s about profitability. Your online presence plays an important role in bringing customers through the door, but if you’re not monitoring the results, you won’t know what’s working and what’s wasting time. Are your social media posts leading to bookings or orders? Are your emails being opened and driving traffic to your website? By analysing metrics like click-through rates, customer responses, and online reservations, you can measure the effectiveness of your marketing efforts and adjust accordingly.

Once you have the data, use it to refine your approach. If a particular type of post or email gets high engagement, double down on that content. If promotions or special offers generate more visits, consider running them more frequently. Low-performing content, on the other hand, may need tweaking—better visuals, stronger calls to action, or improved timing. Social media comments and email replies also provide direct customer feedback, helping you adjust your menu, promotions, or service to better meet demand. Regularly reviewing your marketing results ensures you’re investing time and resources where they have the most impact on your bottom line. 

Regular checks lead to big wins 

Running a profitable restaurant or café isn’t just about great food and service, it’s about staying on top of the numbers that drive success. By regularly checking sales trends, labour costs, stock levels, and marketing performance, you can spot inefficiencies, reduce waste, and maximise revenue. The key is to make these checks part of your routine and delegate where possible, so you can focus on taking action and improving profitability. 

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If you’re looking to invest in new equipment to streamline operations or reduce costs, our team of hospitality equipment finance experts can help. We offer tailored solutions to support your business growth while preserving cash flow. Get in touch today to find out how we can help your restaurant or café thrive.