Managing a restaurant crisis is like plugging holes in a sinking boat - you need to find the biggest leaks first, not throw crew members overboard. You lose knowledge, experience and have to invest in training again later. There are smarter ways to cut costs and improve cashflow.
First analyze where your money really goes
Before you take drastic steps, you need to know where your costs are. Many restaurant owners don't have a clear picture of their cost structure.
💡 Example cost analysis:
Restaurant with €40,000 monthly revenue:
- Food cost: €14,000 (35%)
- Staff: €16,000 (40%)
- Rent: €4,000 (10%)
- Energy: €2,000 (5%)
- Other: €4,000 (10%)
Profit: €0 (break-even)
The reality - food cost is bleeding money. Before you lay off staff, you can save €2,000-3,000 by bringing your food cost down from 35% to 30%.
Quick cost savings without affecting your team
Several ways exist to cut costs quickly without touching your team:
1. Optimize your food cost
- Check portion sizes: Oversized portions cost money directly
- Renegotiate with suppliers: Ask for payment terms or discounts
- Remove expensive ingredients temporarily: Replace with cheaper alternatives
- Focus on profitable dishes: Promote dishes with low food cost
2. Lower other costs
- Energy: Turn off equipment that isn't needed
- Marketing: Pause paid advertising temporarily
- Subscriptions: Cancel unnecessary software or services
- Maintenance: Postpone non-critical repairs
⚠️ Caution:
Don't cut corners on food safety, cleaning or critical equipment. This can end up costing you more.
Increase your revenue with existing staff
More revenue with the same team beats cutting costs every time. Your staff can help you achieve this - it's the kind of thing you only learn after closing your first month at a loss.
- Upselling training: Teach your team to suggest side dishes and drinks
- Expand delivery: More revenue without extra seating
- Lunch service: Extra revenue with existing kitchen
- Promote takeout: Higher margin than delivery
💡 Example upselling impact:
100 covers per day, average €25 per person:
- Current revenue: €2,500/day
- With €3 extra per guest (side dish/drink): €2,800/day
- Difference per month: €9,000 extra revenue
This €9,000 can make the difference between profit and loss.
Improve your cashflow without cutting costs
Sometimes the problem isn't your profitability, but your cashflow. You can be profitable but still have no money:
Faster payments
- Encourage card payments: Money hits your account immediately
- Sell gift cards: Money in before you deliver
- Prepay events: For group arrangements
Slower payments
- Suppliers: Ask for longer payment terms
- Rent: Discuss temporary discount with landlord
- Taxes: Request payment plan from tax authority
Staff adjustments as a last resort
If the above steps don't generate enough savings, you can adjust staff without immediate layoffs:
- Fewer hours: Temporarily shorter shifts
- Unpaid leave: For staff who can afford it
- Temporary wage cuts: In consultation with your team
- Flexible schedules: Only work on busy days
⚠️ Caution:
Always discuss staff adjustments with your team first. Transparency about the situation often leads to understanding and cooperation.
Plan your recovery
A crisis is temporary. Make a plan for the situation improves:
- Keep your best people: Good cooks and servers are hard to replace
- Invest in loyalty: Those who help you in tough times will help you later
- Learn from the crisis: Which cost savings can you keep permanently?
💡 Example recovery plan:
After 3 months of cost control:
- Food cost improved from 35% to 30%
- Average check increased from €25 to €28
- Monthly savings: €5,000
Result: From break-even to €5,000 profit per month
Tools that help with cost control
A crisis makes clear how important it is to keep track of your numbers. Tools like KitchenNmbrs help you:
- Monitor food cost per dish
- Quickly see which dishes are most profitable
- Keep portion sizes and recipes consistent
- Keep track of daily costs
This way you prevent small leaks from becoming big problems.
How do you handle a financial crisis? (step by step)
Do a cost analysis
Calculate exactly where your money goes: food cost, staff, rent, energy and other costs. Put everything as a percentage of your revenue. This way you see where the biggest leaks are.
Start with food cost optimization
Check your portion sizes, renegotiate with suppliers and focus on profitable dishes. A reduction from 35% to 30% food cost saves €2,000 per month at €40,000 revenue.
Increase revenue with existing team
Train your staff in upselling, expand delivery or start a lunch service. €3 extra per guest can generate €9,000 extra revenue per month at 100 covers per day.
Improve your cashflow
Encourage card payments, sell gift cards and ask suppliers for longer payment terms. This gives you more money available without cutting costs.
Adjust staff as a last resort
Try fewer hours, flexible schedules or temporary wage cuts in consultation with your team first. Layoffs often cost more due to loss of knowledge and later hiring costs.
✨ Pro tip
Cut your food waste by 50% within 72 hours by implementing strict portion control and daily inventory checks. Most restaurants lose 4-6% of revenue to waste alone.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
How much can I save by lowering my food cost?
At €40,000 monthly revenue, 1 percentage point of food cost saves €400 per month. From 35% to 30% is €2,000 savings per month, or €24,000 per year.
How long does it take for cost savings to have an effect?
Food cost optimization works immediately. Revenue increase through upselling you'll see within 2-4 weeks. Cashflow improvements through payment arrangements can help within a week.
What if suppliers won't negotiate on prices?
Ask for longer payment terms instead or split your purchases across multiple suppliers. Sometimes you can also temporarily use cheaper alternatives for expensive ingredients.
How do I communicate cost savings to my team?
Be transparent about the situation and ask for help. Explain that temporary measures prevent worse outcomes. Teams often cooperate when they understand why it's necessary.
Which costs should I never cut during a crisis?
Never cut corners on food safety, cleaning, critical equipment or legal obligations. This can cost you much more through fines or reputation damage.
Should I renegotiate my lease during a financial crisis?
Absolutely - landlords often prefer reduced rent to empty spaces. Come prepared with your numbers and propose a temporary reduction rather than permanent changes.
How do I track which cost-cutting measures are actually working?
Monitor your weekly P&L and compare month-over-month changes. Focus on food cost percentage and average transaction value as your key indicators.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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