Introducing

How to Lower the Cost of Goods Sold in Your Restaurant

Running a successful restaurant is about more than just great food and service—it’s also about keeping costs under control. Optimizing your cost of goods sold (COGS) can significantly boost your profitability and keep your business competitive.

Reducing COGS doesn’t mean cutting corners on quality. Instead, it involves smart strategies such as managing inventory effectively, negotiating with suppliers, optimizing your menu, and minimizing waste. Here are some actionable tips to help you get started.

  • Smart Inventory Management. Track stock in real time to prevent over-ordering and reduce spoilage. Use forecasting tools to align purchases with demand.
  • Supplier Negotiations. Build strong relationships with suppliers and negotiate bulk pricing or discounts to secure quality ingredients at better rates.
  • Menu Engineering & Waste Reduction. Analyze your menu to highlight high-margin items, adjust portion sizes, and eliminate ingredients that lead to excessive waste.

Start by auditing your current operations to identify areas for improvement. Adjust ordering practices, optimize storage and handling, and train your team on best practices to ensure every dollar spent translates into quality dishes.

Step-by-Step Strategies for Immediate Impact

Begin with a thorough review of your inventory system. Identify perishable items and adjust your purchasing strategy to reduce waste. Standardize recipes and portion sizes to control costs and maintain consistency. Next, assess your supplier contracts and consider renegotiating terms or exploring alternative vendors. Finally, invest in technology that offers real-time insights into sales and inventory, so you can make data-driven decisions.

“By implementing smarter inventory tracking and renegotiating our supplier contracts, we slashed our food costs by 15% within three months. It's all about working smarter, not harder.”

Restaurant owner
Alex Rivera – Restaurant Owner

Reducing COGS is an ongoing process that demands regular review and adjustment. Monitor your progress, stay updated with industry trends, and continuously seek ways to refine your operations.

Restaurant interior
Effective interior design and layout can also help reduce waste by streamlining kitchen operations.

Everything You Need to Get Up and Running

Whether you’re launching a new restaurant or fine-tuning an established operation, focus on efficiency at every step. From modernizing your ordering system to continuous staff training and regular supplier reviews, every adjustment contributes to a leaner, more profitable business.

Embrace data-driven insights and innovative technology to keep your operations agile. With a commitment to smart management practices, you can ensure that your restaurant not only survives in a competitive market but thrives.