How to Make a Restaurant Profitable

Unknowingly, restaurants can be as profitable as what you have expected. What you need is to adapt some tactics whether in your menu or in the staffs that you have.

If this sounds interesting to you keep reading the article.

There are several ways on how to make a restaurant profitable. Once you have learned these, you can easily execute these to your food business. Thus, this will make your income generating venture more profitable than ever.

Cost Cutting

The first tip that you may use is reduction of the costs of foods. This means that you will identify first the top food items where you invest too much in every month. By the time that you have already identified this, you may begin looking for means to lessen its costs. One example of the way that you can do is to talk to the product distributor and inquire if there are other raw materials that you can use in replace of the extensive ones. Another choice is for you to search for the other distributors because they might have lower costs of the stuffs that you need.

Menu Identification

The other tip for you is to market items that are most profitable. In evaluating for your menu, you must classify the foods that are there according to two groupings such as the best money makers and the best sellers. This will let you identify which among the menu items will get promoted the most.

Since these are best sellers, you will have the chance to earn money out of them without spending too much time in advertising. On the other hand, money makers can be enhanced in order to turn out to be best sellers. Therefore when you make the money maker menus the best sellers, you will earn a lot. All you need is to market it to the customers that you have.

Minimizing Expenses in Energy

Sometimes it is better to take a look at the structure of your restaurant. Minimizing expenses in energy will basically cut your expenses. What you have to do is update some of the old restaurant equipment that you have. Although this will cost some sort of investment at first, you will save a lot in the long run. Specifically, you may try to use digital thermostat in replace of your air conditioners. According to experts, this type of cooling equipment will cut energy consumption fees in as much as three times.

Incentives for Employees

Another tip that you can use is to utilize incentives for your employees. Sometimes, the employee’s services are the reason in order for you to maximize the profit potential of your business. The logic is that the longer the working hours of your employees, the greater the income that you can get.

An example of the incentive that you can use is rewarding them with the excess time that they have spent in working. You can also share some part of the profits that you have earned. Also, you may give overtime fees to those that exceed in their duty hours.


  • Mohit said on March 14, 2011
    Hello Sir, Please let me know the minimum capital with which it is possible to start a restaurant in delhi, NCR n also provide with some tips to make this business profitable....what areas should be it. what should be our target location and also knowledge about registration required to start the business.
  • Edward said on November 13, 2011
    I'm targeting at least Php45,000 / day. This is not my business. I only work here as Food & beverage operations manager. The location is in the Philippines, makati city, but we don't have competitors here coz of poor location.


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