5 Foodservice Tips for Surviving the Cost-of-Living Crisis

An investment in robust and efficient machinery is central for long-term expenditure reduction. Although shaving upfront costs may seem appealing, superior quality equipment can improve energy efficiency, thereby decreasing ongoing operational costs. It's advisable for businesses to thoroughly research suppliers and negotiate for reasonable prices without sacrificing the calibre of kitchen apparatus.

Pinpointing areas for cost minimisation is crucial, but it's equally important not to jeopardise the quality of products and services. The adoption of energy-saving practices, such as LED lighting implementation and kitchen appliance upgrades, can bring about substantial utility bill savings. Tailoring staffing levels to customer demand can also assist with operational efficiency without impairing service quality.

Optimising menus is another tactical method to control costs. Identifying and removing unpopular dishes simplifies the menu. Design dishes utilising economically viable ingredients without sacrificing taste or quality. Curtailing food waste through portion control and adept kitchen practices can significantly affect the financial score. Many companies have also started embracing the “shrinkflation” method.

Shrinkflation is the concept of reducing portion sizes while retaining the same price. This method helps cover increasing production costs, without making it obvious to the customer. 

• Reducing meat quantity: Restaurants might "thin meat" by opting for leaner cuts or incorporating fillers such as vegetables or breadcrumbs. This strategy allows them to minimise the quantity of costly meat required, all while preserving volume.
• Adjusting packaging: Cereals have also been slightly downsized over time. Consumers may not notice any difference in the packaging, but the amount of cereal inside has been subtly reduced. Checking the net weight information clarifies the exact volume.
• Complementary items: For cost-saving measures, restaurants have either eliminated freebies like bread or started charging for condiments like tomato ketchup.

Shrinkflation can erode customer loyalty as patrons may feel deceived when receiving less for the same price, causing a potential decline in their trust and allegiance. It can also damage the business's reputation if perceived as a deceptive attempt to cut costs, leading to negative customer feedback and a tarnished image. Customers may also interpret shrinkflation to mean lower quality food, as reduced portions might suggest poorer standards, even if actual ingredients and preparation remain consistent. Balancing cost management with perceived quality is vital to maintaining positive customer perception. 

When considering executing shrinkflation strategies, transparency and quality are key to retaining customer loyalty and brand reputation.

The use of convenient product solutions, such as gravy, sauces and dessert mixes, can be a game-changer in a professional kitchen. These ready-to-use products not only save valuable time and effort but also help reduce labour costs. By eliminating the need for extensive preparation and cooking from scratch, chefs can focus on other important tasks while still delivering delicious and high-quality dishes. 
Additionally, these convenient solutions can help address the increasing cost-of-living crisis by providing cost-effective alternatives without compromising on taste or quality. 

They offer a practical solution for kitchens to optimise resources and maintain profitability while meeting the demands of a challenging economic landscape. For more ideas, explore our full range of food and beverage solutions.

Cautiously control inventory to prevent over-ordering and waste. Consider opting for a “just-in-time” inventory system to ensure ingredients are consumed efficiently and don't go to waste, risking spoilage. By placing frequent orders in smaller quantities, businesses can adjust to fluctuating demands, reducing the financial strain of surplus stock.   Keep in mind the impact of just-in-time inventory, like higher inventory costs when placing smaller orders more frequently and the risk of running low on inventory when there is a surge in demand. Alternatively, try other methods for reducing food waste, like using the FIFO (first-in, first out) system and donating leftovers to charity.

The cost-of-living crisis poses many challenges  for the foodservice industry. However, by tactically investing, refining menus and maintaining transparent communication with suppliers, food establishments can not only weather the storm but also prosper in a challenging economic landscape. Flexibility and efficiency are crucial as businesses seek creative solutions to handle the ever-changing cost-of-living crisis and ensure their customers' continued gratification. 

For more tips on increasing restaurant sales during a financial crisis - and other hospitality insights - discover our trends and insights from industry experts.