In the competitive world of restoration, profitability is not just an objective, but a pressing need to ensure sustainability And the business growth. We know that the industry faces constant challenges, from cost management to customer satisfaction.

In this context, restaurant owners and managers must adopt a proactive approach that allows them to cover their operating expenses, in addition to reinvesting in their establishments to innovate and continuously improve.

The good news is that technology comes to improve the way restaurants can manage their operations, optimize costs and maximize profitability.

In this article, we will see how technological tools can become strategic allies for measure and improve profitability, allowing you to focus on what truly matters: offering an exceptional dining experience to your diners.

Gain profitability in a restaurant thanks to technology

In an environment as competitive as that of restaurants, focusing attention on key aspects can be decisive for the success or failure of the business.

Recently, at the Learning Day by Restoration News, we had the opportunity to participate with other industry experts to discuss the importance of technology in restoration. Paula Garcés, Business Manager at Polaroo, stood out in her paper 'Recipes for success: optimize costs and gain efficiency with technology', how technology has become the “fridge of the 21st century” for restaurant owners and managers. During the day, it became clear that not adopting these tools, today poses the risk of being left behind.

Next, we'll explore the fundamental pillars where you can implement technology to increase the profitability of your restaurant:

1. Long-term sustainability

Financial sustainability is intrinsically related to environmental and social sustainability. Consumers are increasingly aware of the ecological footprint of their purchasing decisions and prefer to support restaurants that demonstrate a genuine commitment to sustainability. Implement sustainable practices, such as reducing waste, using locally sourced ingredients, or adopting cooking methods that minimize energy consumption, not only does it benefit the planet, but it can also result in lower operating costs.

2. Capacity for reinvestment and innovation

Profitability allows restaurant owners to reinvest in their operations and encourage innovation. Invest in technology, such as intelligent inventory systems, online order management or data analysis tools, can optimize efficiency and reduce costs. The adoption of these technologies can transform operations, allowing restaurants to focus on gastronomic creation.

3. Improving operational efficiency

Efficient cost management is key to maximizing profitability. Kitchens that incorporate technology for inventory control, supply management and personnel planning experience a marked improvement in their daily operation. For example, a restaurant that uses analysis tools to predict demand and optimize stock you can avoid significant losses.

4. Control and transparency in expenses

The lack of control over operating expenses can lead to erroneous decisions that directly impact profitability. Implement systems that centralize information about suppliers, contracts and consumption is crucial. This makes management easier and allows us to identify opportunities to negotiate better agreements and reduce unnecessary costs.

Key Factors Affecting a Restaurant's Profitability

There are several factors that directly influence profitability and also affect the possibility of reducing expenses for a restaurant. Some of the most important ones include:

Costs of raw materials

Basic ingredients and products represent one of the highest expenses. The choice of suppliers, the purchase in large quantities and the seasonality of products are elements that must be considered to maximize efficiency in this regard. In addition, implementing inventory control systems can help minimize waste and ensure that fresh produce is always available, which in turn contributes to customer satisfaction.

Supply costs

Supply costs, which include expenses such as water, electricity, gas and internet, are another crucial part of a restaurant's budget.

The management of these basic services can be optimized with tools such as Polaroo's, such as basic supply management software. The digitalization of supply management makes it possible to centralize all information about contracts and invoices, improving transparency and identifying areas of savings due to the possibility of making a data analysis by periods.

In this context, we help restaurants to optimize their costs through regular contract reviews, which can result in savings of up to 40% in recurring expenses. This management also reduces the financial burden, and allows owners or managers to concentrate on other strategic areas of the business, such as customer experience or the creation of a new menu.

Labor costs

Staff are a key resource in any restaurant, and efficiently managing their working hours can positively impact results. Implementing scheduling and time management tools can help optimize staffing according to peak hours, reducing labor costs without sacrificing service quality. Ongoing training is also essential to ensure that staff are able to perform their functions efficiently and productively.

Operating costs

Expenses such as rent, energy and basic services also play a critical role in profitability. Reducing these costs is crucial to increasing profit margins. A regular evaluation of service contracts can help to renegotiate more favorable rates. In addition, implementing technological solutions for energy management, such as consumption monitoring systems, can contribute to energy efficiency, thus reducing monthly bills.

Basic formulas for calculating the profitability of a restaurant

There are several ways to measure the profitability of a restaurant. Some key formulas include:

• Calculate the gross profit margin:

[(Sales - Direct Costs)/Sales] x 100 = Gross profit margin.

This indicator considers only the direct costs associated with the production of a product or dish. It is mainly used to evaluate the profitability of specific product lines or dishes, helping to determine if direct costs are sustainable in relation to the margin they generate.

• Calculate net profit margin: 

[(Total Revenue - Total Costs)/Total Revenue] x 100 = net profit margin.

In this case, we consider both the direct costs Like the indirect costs, which are necessary for the operation of the restaurant, but are not directly linked to the services offered.

These formulas are useful for carrying out a restaurant's profitability analysis and allow us to establish clear objectives in terms of reducing costs and increasing revenues.

Tools and resources to calculate profitability and improve

Here are some key tools that can transform the way you operate your restaurant business with the objective of implement digital platforms that lead to optimal management, reduce costs and, therefore, lead to improved profitability:

1. Inventory Management Tools

These tools offer functions such as real-time stock tracking, demand forecasting and creating reports on ingredient use. With well-managed inventory, it's possible to reduce waste and ensure that sufficient supplies are always available. An example of this is MarketMan, a platform for managing inventory, billing, purchases, the calculation of the cost of prescriptions and the COGS (Cost of goods sold). This makes it possible to streamline daily tasks with advanced automation and boost business growth with strategic information.

2. Customer Relationship Management (CRM) Systems and Order Management Software

These platforms make it possible to collect data on the preferences of diners, thus facilitating the personalization of the service and marketing. In addition, the information collected can be used to design specific promotions and improve customer loyalty. In this regard, the technology company Square allows owners to sell anywhere, pay employees, manage inventory, communicate with customers, schedule appointments or manage orders online.

3. Data analysis platforms

Tools such as Restaurant365 provide advanced analytics that help restaurants evaluate their financial and operational performance. These systems make it possible to track ingredient costs, working hours and other expenses, making it easier to identify areas for improvement.

4. Basic supply management software

For our part, Polaroo provides all-in-one software for managing basic supplies, which, as we told you in the previous lines, allows you to optimize costs due to:

• La centralizing invoices on a single panel: It makes it easy to track electricity, water, gas and internet expenses, among other supplies.
• La automation of supply management: This allows you to reduce errors and avoid penalties for late payments.
• La optimization of contracts and negotiations with suppliers: This can generate up to 40% savings in supply costs, in addition to the reduction of working hours.
• El advanced data analysis: So you can make informed decisions about how to optimize your operation and reduce unnecessary expenses.

Strategies to improve the profitability of your restaurant

Following the line of the previous section, technology not only improves operational efficiency, but it also allows us to reduce time and optimize costs. What are the fundamental strategies What do these advantages encompass? Here are some tips for you:

• Optimizing supplies: Centralize supply management to save time and resources, allowing you to focus on other key areas of the business.
• Constant monitoring of profitability indicators: Perform regular analyses to detect opportunities for improvement before they have a negative impact.
• Price and profit margin review: Regularly adjust your prices based on changes in costs and demand to ensure optimal margins.
• Elimination of unnecessary costs: Take advantage of management platforms to delegate processes without sacrificing service or product quality.
• Customer Loyalty: Create automated loyalty programs that strengthen long-term relationships and maintain profitability.

Real example of restaurants and improved profitability: Berto's Milanesa

Berto's Milanesa, an innovative fast food chain with a presence in Barcelona and Madrid, faced the challenge of efficiently managing supplies as it grew.

With five restaurants operating and expansion plans, manually managing contracts and assets consumed key time and resources.

To overcome this challenge, Berto's Milanesa turned to Polaroo software to centralize and automate its management of basic supplies. Thanks to the integration of all supply contracts on a single platform, the chain managed to optimize contracts, reduce costs and free the team from administrative tasks, allowing them to focus on business expansion and strategy.

Among the profits Highlights include:

• Savings of 1,800€ in operating costs, thanks to the optimization of contracts.
• More than 50 hours saved in administrative management.
• Peace of mind and total control over supplies, allowing the team to focus on their gastronomic proposal and expansion.

This case demonstrates how strategically applied technology can improve operational efficiency and increase the profitability of a growing restaurant. Find out how Polaroo's supply management software works in this video on how to simplify your company's finances.