Are you worried about the profitability of your restaurant? Efficient management of a restaurant's resources and reducing expenses are key to maintaining a thriving and competitive business.

In this article, we break down the main expenses a restaurant faces and how to effectively reduce them, focusing on the importance of optimized management of basic supplies. In addition, we highlight the importance of data analysis using technological solutions.

When using a technological solution such as for supply management in the HORECA sector, restaurant managers can reduce both the time spent and operating costs, which helps to increase their profitability.

Table of expenses for a restaurant

The first step in reducing restaurant expenses is to understand what the money is being spent on. The operating expenses of a restaurant can be divided into several main categories:

1. Food and beverage costs: It includes the purchase of ingredients, alcoholic and non-alcoholic beverages, and other necessary kitchen supplies.
2. Personnel costs: Wages, salaries, labor taxes and staff benefits.
3. Basic services or supplies: Water, gas and electricity expenses, among others.
4. Rental and maintenance: Costs of renting the premises, equipment maintenance and repairs.
5. Marketing and advertising expenses: Investments in advertising and marketing to attract customers
6. Costs of supplies and disposable items: Cleaning products, kitchen utensils, napkins, containers, etc.

Within these expenses, basic services or supplies are essential and, although they are sometimes considered fixed, there are strategies to manage them more efficiently and reduce their impact on the restaurant's budget.

Let's see them below.

How much water does a restaurant spend?

Reducing water consumption can have a significant impact on operating costs, since, on average, Water accounts for around 15% of bills in most establishments.

While the cost of water in a restaurant It can vary considerably depending on the type of establishment, the size, the number of customers, the cooking and cleaning processes, as well as the sustainability practices implemented, there are a number of practices for save on water consumption in restaurants.

According to the Guide to Efficient Use of Water in the City, published by ecodes.org, the consumption of water in a restaurant is estimated at 30 liters per person per day. If the installation is a bar type, the liters of water consumed by a person per day drop to 8 liters.

Continuing with more global data, the Environmental Protection Agency estimates that cooking and cleaning account for 52% of the areas where a greater is made water consumption in restaurants. It is followed by 31 percent water consumption in toilets, 4 percent in decoration and 1 percent in cooling and heating.

Tips for reducing water consumption:

• Install low-flow faucets and water-saving devices: These devices reduce water flow without affecting functionality, which can significantly reduce consumption.
• Check and repair water leaks regularly: Undetected leaks can be an unnecessary expense.
• Train staff: Instruct kitchen and cleaning equipment on water-saving practices, such as turning off faucets when they are not being used.

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‍How much does a restaurant spend on electricity and gas?

‍Electricity also accounts for a large part of operating expenses. Appliances, lights, air conditioning and ventilation systems contribute to energy expenditure.

If we talk about dimensions of 30 square meters (dimensions of an average kitchen), we would be talking about 30,000 kWh, whose economic estimate would be between 4,000 and 8,000 euros per year. El monthly electricity consumption in a restaurant it would then be between 300 and 700 euros.

If we serve a restaurant of approximately 100 square meters, it is estimated that the annual electricity and gas costs can be high, although these vary depending on the specific characteristics of the place.

On the one hand, the Average electricity consumption in a restaurant of this size it is usually between 30,000 and 50,000 kWh per year. This level of consumption would result in an annual expenditure of between 5,000 and 10,000 euros, depending on electricity rates, contracted power, and equipment efficiency.

On the other hand, the Average gas consumption It is between 8,000 and 12,000 kWh per year. This gas consumption represents an additional cost of approximately 500 to 1,500 euros per year.

In general, the combined monthly electricity and gas costs for a restaurant of this size range from 500 to 1,000 euros per month.

Tips for reducing electricity and gas consumption:

• Switch to LED lighting: LED bulbs consume up to 75% less energy and last longer than incandescent bulbs.
• Use timers and motion sensors: To ensure that lights and other electrical equipment are used only when needed.
• Keep electrical equipment in good condition: Equipment such as refrigerators and freezers consume more energy if they are not in optimal condition.

• Check and maintain kitchen equipment regularly: Poorly maintained equipment consumes more energy.
• Optimize cooking processes: Use efficient cooking techniques, such as cooking with lids to reduce cooking time and make better use of heat.
• Implement technology to control consumption: This makes it possible to control and forecast the use of resources, adjusting purchases to real demand and avoiding waste.

How to manage and reduce restaurant expenses‍

Reducing expenses in a restaurant not only means cutting costs, but also optimizing how resources are used to obtain the maximum benefit. Here are some key strategies for more efficient management:

1. Perform energy audits: Evaluate energy, water and gas consumption regularly to identify areas for improvement.
2. Negotiate with suppliers: Maintaining a good relationship with suppliers and negotiating prices can result in significant savings. At Polaroo, we have a team of experts who work continuously to find the best rates for each particular case, research the latest developments in the market and manage any incidents or administrative processes with suppliers.
3. Train staff: A staff aware of the efficient use of resources is crucial. Fostering a culture of savings within the team can help to reduce expenses considerably.

‍Improve restaurant supply management with data analysis

According to the study “Use of artificial intelligence and big data in Spanish companies”, published by the ONTSI in 2023, more than 17% of companies have specialists in new technologies in its workforce and AI is gaining more ground in the business world. Therefore, in a competitive environment such as hospitality, make the most of available data is essential for reducing costs and improving efficiency.

There are a number of advantages in data analysis in hospitality ranging from identifying trends and patterns and optimizing processes, to the ability to personalize and segment customers to adjust the offer to their preferences. Data analysis also has the great benefit of detecting anomalies and evaluating the performance of available resources.

For the management of basic local supplies, Polaroo offers a platform that extracts and centralizes bills for services such as water, electricity, gas, internet, and others. From this, it processes the data to allow the visualization of the evolution of consumption and the costs associated with each supply.

With this type of software, you can:

• Automate supply billing: Collecting and digitizing utility service invoices, favoring the structuring and organization of data.
• Monitor real data on water, gas and electricity consumption: Identifying peaks and valleys in the use of each supply and allowing the implementation of corrective measures.
• Control costs: Generate detailed reports on resource consumption and associated costs, facilitating informed decision-making.

‍Forecasting and managing expenses in managing restaurant supplies

TEIKIT, a Japanese food delivery service founded in 2012 by Quim, Martín and Ramón, has established itself as an innovative brand in the competitive Japanese gastronomy market. With an offer that combines international flavors with a Japanese base, they have known how to capture the attention of sushi lovers looking for a modern and fresh experience.

As TEIKIT grew, managing essential supplies such as electricity, water and gas at each of its locations became a complex challenge. The lack of centralization in the management of these resources not only complicated the optimization of operations, but also consumed valuable time and resources, diverting attention from strategic aspects of the business.

To solve this challenge, TEIKIT decided to implement our management software as a technological solution specialized in supply management for the HORECA sector. With the Polaroo platform, they were able to centralize and efficiently monitor the consumption of supplies from all its locations. This tool allowed a detailed and unified view of expenses, facilitating decision-making based on data and the implementation of savings and optimization measures.

The results obtained were very remarkable in just one year:

• Reduction of more than 560 hours of administrative work: Automating supply management saved this time, giving the team an opportunity to focus on improving the dining experience and customer service.
• Reduction of more than 34,000 euros in costs: The optimization of resources also resulted in cost savings, improving business profitability and sustainability.

With the integration of Polaroo, TEIKIT was able to improve its operational efficiency, and establish a solid foundation for sustainable growth in Barcelona's competitive gastronomic market. This case shows how the right technology can transform the management of a restaurant and boost its long-term profitability.