5 Cost Control Strategies for Restaurants

With rising food prices, increasing energy costs, and tight labour markets, maintaining profitability in the UK restaurant sector is more difficult than ever. At Profit First Hospitality, we specialise in helping restaurant owners take back control of their finances and improve cash flow using the proven Profit First methodology.

Here are five cost control strategies that every UK restaurant should implement to protect profits and build a more resilient business.

1. Take Control of Inventory and Food Waste

Food waste is one of the most significant (and preventable) drains on restaurant profit. Implementing a reliable stock management system integrated with your EPOS can help you monitor usage, minimise spoilage, and order only what you need.

Key actions:

• Track ingredient usage in real time

• Compare theoretical vs actual food costs

• Set par levels to reduce over-ordering

  
  

The result?  You reduce waste, improve gross profit margins, and gain visibility over your cost of goods sold.

2. Streamline Your Menu to Improve Profitability

A bloated menu increases operational complexity, drives up ingredient costs, and slows down kitchen efficiency. Menu engineering allows you to focus on best-sellers and high-margin dishes.

How to optimise your menu:

• Analyse item profitability and popularity

• Eliminate underperforming dishes

• Standardise recipes for consistent cost control

  
  

Use design tactics to highlight high-margin items and influence customer choices – there’s a whole section dedicated to this on this in our Profit First Hospitality course.

3. Centralise Purchasing and Negotiate Better Supplier Terms

Many independent restaurants overpay for ingredients due to fragmented ordering and outdated pricing agreements. By centralising purchasing and benchmarking suppliers, you can unlock significant savings.

Steps to implement:

• Audit all current suppliers and pricing

• Negotiate volume discounts or fixed-price contracts

• Join a hospitality purchasing group if possible

  
  

At Profit First Hospitality, we guide our clients through a supplier audit to identify profit leaks and renegotiate from a position of strength.

4. Cut Energy and Utility Costs Through Smarter Operations

With energy prices at record highs, utility costs can quietly erode your bottom line. Fortunately, small behavioural changes and strategic upgrades can lead to meaningful savings.

Energy-saving strategies:

• Upgrade to low-energy equipment (LED lighting, induction hobs)

• Turn off or power down appliances during downtime

• Schedule energy-intensive tasks during off-peak hours

  
  

These actions support your sustainability goals and help reduce fixed overheads. You’ll find a dedicated section on energy saving strategies for your building as part of our Profit First Hospitality Course resources.

5. Optimise Staffing Without Compromising Service

Labour is one of the largest controllable costs in any restaurant. Smart scheduling, cross-training, and forecasting can help you reduce overtime, avoid overstaffing, and retain top talent.

Ways to improve staffing efficiency:

• Match shift patterns to booking forecasts

• Cross-train staff to increase flexibility

• Track labour costs as a % of revenue weekly

  
  

Our Profit First coaching includes labour benchmarks and rota planning templates to help restaurants manage staffing profitably.

Improve Your Restaurant Profitability TODAY Through Proactive Financial Control

Controlling costs isn’t about cutting corners — it’s about building smarter systems that align with your profitability goals. By implementing these five strategies, restaurant owners can unlock immediate savings and lay the foundation for long-term financial success.

At Profit First Hospitality, we help restaurant operators across the UK take charge of their finances using a proven, cash-driven framework. Whether you're an independent bistro or a growing multi-site group, our Profit First programme can help you run a more profitable, sustainable hospitality business.

Want to take control of your restaurant’s profit? Sign up today and let us help you implement the Profit First system in your restaurant.