Word on the street is that food prices are expected to increase. Between June and October of this year, international food prices declined, though they are still close to all-time highs and tend to rise over the years, according to the World Bank. Every year, food prices naturally fluctuate for a number of reasons. Fuel prices and weather conditions are huge factors affecting the food costs of ingredients. As fuel prices go up, transportation costs of wholesale produce and other ingredients go up. This factor tends to change frequently, effecting market prices starting up to six weeks later. Weather conditions have generally been relatively predictable. However, recent years have shown drastic changes in the typical weather of many regions, decreasing the yield of raw ingredients and therefore increasing food costs. In order for food businesses to maximize profits moving forward, they will have to strategize how to save money on food or reduce their expenses.
Becoming a Green Restaurant
Going green is very in fashion due to the consumer concern for the environment. However, there are other gains that can be acquired by becoming a green restaurant. Bringing in sustainable food can be a great strategy for how to save money on food. Partnering with local farms to receive fresh, in-season ingredients can lower costs by being flexible with food orders. Out-of-season ingredients are always more expensive, so ordering sustainable, local food can lower food costs significantly. Electricity is another cost that is related to being a green restaurant. By increasing business energy efficiency, restaurants will be spending less money on electricity bills, helping make up for the higher food prices in an attempt to maximize profits. Purchasing energy-star appliances that will increase business energy efficiency is a great first step to maximize profits.
Other Ways to Save Money on Food
Reducing food waste by planning a menu to make the most of every part of a raw ingredient reduces food costs since fewer ingredients will be used to prepare more dishes, maximizing profits. Businesses may also want to reconsider how to run a restaurant in terms of portion sizes, staff on-hand, and the number of appliances to purchase, in order to make sure that money is saved where possible, in adapting to the rising food costs. Many restaurants offer huge portion sizes that could easily be cut down without customers noticing or going hungry. Reducing portion sizes lowers the food costs of those dishes. Many food businesses also spend potential profits on extra staff on shift, at any given time. Restaurants should evaluate how many staff members are needed during different hours of the day. Money can be saved on appliances as well. Some appliances are fun for cooks, but not mandatory for a business. Appliances can be a huge expense for a restaurant, so reducing the number of purchases made can be a great plan for how to run a restaurant to maximize profits despite food price increases.
Simple changes in how to run a restaurant can be extremely effective to maximize profits. Even though food prices are increasing, businesses can avoid the negative effects by becoming a greener restaurant, ordering in-season produce, and re-evaluating spending.