Close Menu
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing & Mental Health
  • Marketing
  • HR & Recruitment
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
X (Twitter) LinkedIn YouTube
Trending
  • Planning a rural business move? What Clarkson’s picnic clause might teach you
  • Meet the Tech Leader Who Makes Things Happen
  • Handheld Laser Scanners Drive New Growth For Sep Geospatial In Unlikely Sectors
  • Loughborough’s Here Self Storage Hits 65% Occupancy As Local Demand Grows
  • Tool theft legislation and steps to protect your tools
  • Why Digital Excellence is key to transforming Business Culture
  • Busting myths about Asset Based Lending 
  • Self-driving cars could hit UK roads sooner than you expect, says Heligan Group
X (Twitter) LinkedIn YouTube
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing
  • Marketing
  • HR & Recruitment
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • Twitter
  • LinkedIn
  • YouTube
  • RSS
You are at:Home»Finance»Cutting Down on Business Costs in Your Cafe
PureGusto - Cafe finances

Cutting Down on Business Costs in Your Cafe

0
Posted By sme-admin on April 16, 2025 Finance, Food and Drink

In the ever-competitive world of hospitality, managing costs effectively can mean the difference between thriving and merely surviving. Café owners are feeling the pressure of rising costs across the board – from ingredients and energy bills to staff wages. There are a number of practical and actionable ways to cut down on expenses without sacrificing quality or customer experience.

Audit and Analyse Your Current Costs

Before you can cut costs, you need to understand where your money is going. Regularly reviewing your profit & loss (P&L) statements helps highlight areas where expenses may be unnecessarily high. Look closely at labour costs, inventory spending, and utility bills.

Tools such as accounting software or your point-of-sale (POS) system can provide detailed insights into your financial health, allowing you to make informed decisions. Set a regular schedule for reviewing these figures and compare them against industry benchmarks to identify any unusual spikes or underperforming areas.

Smart Stock Management

One of the most effective ways to reduce waste and save money is to improve your stock management. Implement a stock tracking system and use sales data to forecast demand more accurately. Apply the FIFO (First In, First Out) principle to ensure older stock is used first, reducing spoilage. Even a simple spreadsheet can help you keep tabs on usage patterns and avoid over-ordering. Train staff to properly store and label ingredients, and conduct regular stocktakes to identify discrepancies early and avoid costly losses.

Buy in Bulk — But Wisely

Bulk buying can significantly reduce per-unit costs, particularly for non-perishable items like cups, napkins, and cleaning supplies. However, perishable goods such as coffee beans need more careful planning.

There are clear benefits to buying wholesale coffee beans, including lower prices and the convenience of reduced ordering frequency. However, coffee beans are best when fresh, so only buy in bulk if you have proper storage – airtight containers in a cool, dark place. Aim to use beans within three to four weeks of roasting for the best flavour. To avoid waste, track your usage closely and order realistic quantities. If possible, choose suppliers that offer smaller, vacuum-sealed batches or more frequent deliveries.

Streamline Your Menu

A large, complex menu can increase costs through waste, training, and preparation time. Consider trimming down your offerings to focus on best-sellers and high-margin items. This not only simplifies kitchen operations but also reduces the number of ingredients you need to stock. Designing a menu where ingredients are shared across multiple dishes maximises efficiency and minimises waste. Review your sales reports regularly to identify underperforming items, and don’t be afraid to experiment with seasonal or rotating specials to maintain customer interest without adding permanent menu bloat.

Control Labour Costs

Labour is often one of the largest expenses for a café. Using scheduling software can help match staffing levels to actual customer demand, reducing unnecessary hours. Cross-training staff allows for more flexibility and ensures you’re covered during busy periods without overstaffing. Keeping employees happy and engaged reduces turnover, saving you money on recruitment and training. Encourage open communication, provide opportunities for development, and acknowledge staff contributions to foster a loyal and motivated team.

Reduce Utility Expenses

Small changes in how you use energy and water can add up to significant savings. Switch to energy-efficient appliances and LED lighting, and encourage staff to turn off equipment when it’s not in use. Regular maintenance of fridges, ovens, and HVAC systems ensures they run efficiently and last longer. Installing low-flow taps or toilets can also cut down on water bills. Consider investing in smart meters to monitor usage patterns and identify peak consumption periods where savings can be made.

Embrace Technology

Modern technology can automate many of the time-consuming tasks involved in running a café. A good POS system can handle stock tracking, sales reporting, and even customer data. Cloud-based tools can simplify payroll, ordering, and accounting, helping you stay organised and reduce admin hours. Going paperless not only saves money on supplies but also supports sustainability efforts. Review your current systems regularly to ensure you’re using the most cost-effective and efficient solutions available.

Smarter Marketing, Lower Spend

Effective marketing doesn’t have to come with a hefty price tag. Make the most of free or low-cost digital platforms such as Instagram, Facebook, and your Google Business Profile. Encourage customers to leave reviews and share their experiences online. Launching a simple loyalty or referral programme can build customer retention without significant investment. Create engaging content, such as behind-the-scenes videos or promotions, to strengthen your brand and reach a wider audience without breaking the bank.

Collaborate and Negotiate

Don’t be afraid to negotiate with your suppliers for better rates or bulk discounts, especially if you’ve been a loyal customer. Likewise, talking to your landlord about potential rent reductions or more favourable lease terms could yield savings. Consider joining a local café co-operative or buyer’s group to gain access to shared resources and collective bargaining power. Partnerships with nearby businesses can also open up opportunities for cross-promotion and community engagement. Sharing resources like event space or promotional materials can further reduce your overheads.

 

 

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Busting myths about Asset Based Lending 

How to build a £1 million pension and ISA portfolio

Pension reforms risk higher prices, fewer jobs and slower growth, FSB warns

Comments are closed.

Follow SME Today on Linkedin and share all the topics you find interesting
Verify your identity for Companies House

The Newsletter

Join our mailing list for the best SME stories, handpicked and delivered direct to your inbox every two weeks!

Sign Up
Events Calendar
    • Marketing
    July 7, 2025

    Bold Business Marketing Specialist Speaks In Swindon This Week

    July 4, 2025

    How Generative AI is Giving SMEs a Marketing Edge

    • Finance
    July 14, 2025

    Busting myths about Asset Based Lending 

    July 10, 2025

    How to build a £1 million pension and ISA portfolio

    • Health & Safety
    July 1, 2025

    Temperatures Soaring: Is Your Workplace Becoming Unsafe?

    January 29, 2025

    UK takeaways guilty of shocking hygiene failures:

    • Events
    July 4, 2025

    £20k grant for female-founded SME up for grabs

    July 2, 2025

    As Seen on BBC Panorama – Brad Burton to Headline The South West Expo in Swindon

    • Community
    July 11, 2025

    Building community, one cause at a time

    June 23, 2025

    Celebrating One Year In Fairford Supporting The Community

    • Food & Drink
    June 23, 2025

    England Cricket Captain, Ben Stokes OBE, takes a stake in Spencer Matthews’ alcohol-free spirits brand, CleanCo

    June 16, 2025

    Hospitality industry risks collapse

    • Books
    April 24, 2025

    Values-Driven Professionalism: A Path to Client Loyalty

    December 2, 2024

    Banish the banshee boss: how to lead without fear – addressing the issue of fear-based management and how NOT to be this manager

    About

    SME Today is published by the same team who deliver The Great British Expos’. We have been organising various corporate events for the last 10 years, with a strong track record of producing well managed and attended business events across the UK.

    Join Our Mailing List

    Receive the latest news and updates from SMEToday.
    Read our Latest Newsletter:


    Sign Up
    X (Twitter) YouTube LinkedIn
    Most Recent Posts
    July 16, 2025

    Planning a rural business move? What Clarkson’s picnic clause might teach you

    July 16, 2025

    Meet the Tech Leader Who Makes Things Happen

    July 15, 2025

    Handheld Laser Scanners Drive New Growth For Sep Geospatial In Unlikely Sectors

    July 15, 2025

    Loughborough’s Here Self Storage Hits 65% Occupancy As Local Demand Grows

    July 15, 2025

    Tool theft legislation and steps to protect your tools

    Categories
    • Books
    • Community & Charity
    • Education and Training
    • Environment
    • Events
    • Features
    • Finance
    • Food and Drink
    • Health & Safety
    • HR & Recruitment
    • In Profile
    • Legal
    • Marketing
    • News
    • Property & Development
    • Sponsored Content
    • Technology
    • Transport & Tourism
    • Wellbeing & Mental Health

    Copyright © 2020 SME Today.

    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Editorial Submission Guidelines
    • Privacy
    • Contact
    Copyright © 2025 SME Today.
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Editorial Submission Guidelines
    • Privacy
    • Contact

    Type above and press Enter to search. Press Esc to cancel.