Rising food costs remain one of the biggest challenges for restaurant operators, with food-away-from-home prices increasing around 4 to 5 percent year over year. That pressure shows up quickly in cost of goods sold, where even small inefficiencies can impact margins. Without clear visibility into inventory and purchasing, those costs can add up fast. The good news is you do not have to sacrifice quality to stay on track.
Here are eight practical strategies to help keep food costs in check.
Sales forecasting helps you plan ahead instead of reacting after the fact. By looking at historical sales and current trends, you can get a clearer picture of what demand will look like in the coming days and weeks.
That insight helps managers make better decisions around purchasing, prep, and staffing. Instead of over-ordering or running short, teams can order closer to what they actually need.
Forecasting is especially helpful when menu mix or pricing shifts. When you understand what is selling and how demand is changing, you can adjust purchasing before it affects your margins.
Inventory counting may not be the most exciting part of the job, but it is one of the most important.
A consistent counting schedule helps create reliable data. Most operators find success by counting inventory on the same day each week, at the same time, so results stay consistent.
Once you have accurate counts, you can start to identify trends, spot inconsistencies, and understand where your food costs are coming from. Without that baseline, it is difficult to know what needs to change.
Not every item needs to be counted at the same frequency.
In most restaurants, a small percentage of items drives the majority of food cost. Focusing on those high-impact ingredients can give you faster insight into where issues may be happening.
Identify your most expensive and most frequently used items, then count those one to two times per week. This makes it easier to catch problems early, whether it is waste, over-portioning, or ordering issues.
Inventory and accounting should not live in separate systems.
When these systems are connected, inventory activity such as purchases, transfers, and waste automatically flows into your financials. This reduces manual entry and improves accuracy.
More importantly, it gives you real-time visibility into how inventory decisions are affecting your costs and overall performance.
When inventory and accounting are aligned, it becomes much easier to manage CoGS and understand where adjustments are needed.
Inventory counts happen weekly or monthly, but your food cost performance should be reviewed much more often.
Regular CoGS review helps you stay ahead of issues instead of finding them at the end of the month. Even a quick daily or weekly check can highlight trends that need attention.
This could include shifts in ingredient usage, changes in menu mix, or unexpected increases in cost.
The earlier you catch these changes, the easier they are to correct.
Food waste is one of the biggest hidden drivers of high food cost.
Recent industry estimates suggest that restaurants can lose 4 to 10 percent of their inventory to waste, depending on processes and oversight. Without tracking, it is difficult to know where that loss is coming from.
Recording waste consistently helps you identify patterns. You can see which items are being thrown away, when it happens, and why.
With that information, you can adjust prep, storage, or ordering practices to reduce waste over time.
It is easy to focus only on food, but non-food items also add up.
Packaging, paper goods, cleaning supplies, and other everyday items should be included in your inventory tracking. These costs may seem small individually, but they are used constantly and can impact margins over time.
Tracking these items, even on a monthly basis, helps ensure you are capturing the full picture of your cost of goods.
Your team plays a direct role in controlling food cost.
Training staff on proper portioning, storage, and handling can make a noticeable difference. When employees understand how their actions impact cost, they are more likely to follow processes consistently.
Some operators also choose to share high-level financial information with their teams. Giving employees visibility into performance can help create a stronger sense of ownership and accountability.
When everyone understands the goal, it becomes easier to maintain consistency across shifts.
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Managing cost of goods is not always simple, especially with rising prices and day-to-day operational demands. But it is one of the most effective ways to protect your margins.
By focusing on forecasting, consistent inventory practices, system integration, and team training, restaurants can reduce waste and gain better control over their costs.
Small improvements in each of these areas can add up quickly. Over time, they can make a meaningful difference in your overall profitability.
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