Whether we like it or not, the fluctuating rand and its influence on the prices of imported goods has an impact on our budget management. In the fast-paced restaurant industry, you are constantly dealing with suppliers that make price adjustments according to the exchange rate. This in return, causes a ripple effect that can have serious consequences for your bottom line.

Here are a few budget management tips that can help your establishment flourish regardless of the economic fluctuations:

Choose a supplier that can handle the punch

In pressing economic times, loyalty is futile and you have to look out for the financial wellbeing of your restaurant. Re-evaluating your suppliers is key to improving your budget management. You have to shop around for the best quality at the best price. The bigger your supplier, the more likely they are to be able to absorb the increase in prices due to a weaker currency. But it isn’t always size that matters; smart suppliers that plan ahead, have good relations and fixed price agreements with foreign contractors are also a great bet. Choose wisely and always be on the lookout for a better deal.

Buy non-perishable products in bulk

Bulk buying is one of the most common ways to combat fluctuating prices. This is, however, a difficult system to implement in the fast moving restaurant industry with a high product turnover. A good budget management tip is to plan ahead for the month and purchase all non-perishable such as flour, sauces and the like in one go. You’ll save on the cost of weekly deliveries and be able to purchase from bigger, more affordable suppliers.

Source your fresh produce locally

Staying away from imported goods is one of the best ways to avoid the fluctuating currency eating away at your profit margins. Try as far as possible to purchase local fresh produce. Not only will you be safeguarded against unforeseen price increases due to the weaker rand, you’ll be getting fresher products that support local economic growth – win-win situation for your establishment, as well as employment creation and sustainability.

Adapt your menu according to the season

This goes hand in hand with the sourcing of local produce. If you don’t already have one, introduce a seasonal menu. In this way you can help ensure that you never run out of supplies, are able to budget better and don’t have to fork out for costly imported products. Seasonal products are not only easier to come by and cheaper, but allow you to more effectively forecast expenses, subsequently improving your budget management.

Combat currency instability with a data smart point of sale solution

Pilot’s point of sale goes above and beyond what you’d expect from a PoS solution, providing a powerful tool to help improve budget management. Our intuitive PilotLive data analytics helps safeguard your restaurant against any economic eventuality. With our smart reports that give you a complete overview of every cent coming in and out of your establishment, you can accurately forecast and make adjustments to protect and increase your bottom line. To find out more about how data analytics can help you better manage your restaurant, increase productivity and profits, download our free guide Restaurant Data: Everything you need to know.

Author : Rudi Badenhorst

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budget management Restaurant restaurant industry