HOW TO SAVE MONEY IN YOUR HOSPITALITY BUSINESS
Running a hospitality business is all about balancing great customer experiences with smart financial decisions. Profit margins in hospitality can be as low as 3-5%, so every dollar saved makes a difference. From rostering efficiently to optimising your menu, here are practical ways to cut costs without cutting quality—and how social media can help drive profitability.
Optimise Your Roster & Labour Costs
Labour is one of the biggest expenses in hospitality. Wages and superannuation add up fast, so getting the right mix of staff on shift is critical.
– Use rostering software like Deputy or Tanda to track peak times and adjust staffing levels accordingly.
– Cross-train staff so they can cover multiple roles when needed.
– Reduce overtime by ensuring rosters are balanced and efficient.
Review & Refine Your Menu
Are all your menu items actually profitable? Regularly reviewing your menu can highlight low-margin or slow-moving dishes that don’t justify their place.
– Identify high-margin items (like pasta, coffee, or cocktails) and push them through promotions.
– Reduce menu complexity—simpler menus mean lower ingredient costs and faster prep times.
– Use seasonal, locally sourced ingredients to cut costs and improve freshness.
Reduce Waste & Improve Stock Management
Food wastage costs the Australian hospitality industry over $7.6 billion annually. Cutting waste saves money and boosts your bottom line.
– Implement portion control to avoid over-serving and food wastage.
– Track stock levels and use FIFO (First In, First Out) to minimise expired products.
– Repurpose ingredients creatively (e.g., using vegetable scraps for broths or making specials from excess stock).
Leverage Social Media Instead of Paid Advertising
Marketing doesn’t have to cost a fortune. Instead of expensive traditional advertising, use social media to reach thousands for free.
– Encourage customers to tag your venue and share their experiences.
– Run organic competitions to boost engagement without high ad spend.
– Use Instagram and Facebook stories to promote daily specials and offers in real time.
Push High-Margin Items Strategically
Not all menu items are created equal. Smart marketing can steer customers toward the most profitable options.
– Train staff to upsell high-margin items like drinks and desserts.
– Design your menu layout to highlight profitable dishes (e.g., using boxes, bold text, or images).
– Use limited-time specials to test new, cost-effective dishes before adding them permanently.
Reduce Energy & Utility Costs
Energy bills can eat into your profits, but small changes can lead to big savings.
– Switch to LED lighting and energy-efficient appliances.
– Invest in smart timers and sensors to reduce unnecessary power use.
– Regularly maintain equipment to keep it running efficiently and avoid costly repairs.
Negotiate with Suppliers & Review Contracts
Your suppliers want your business—but that doesn’t mean you have to accept the first price they offer.
– Regularly review supplier pricing and negotiate better deals.
– Buy in bulk for non-perishable items to secure discounts.
– Consider alternative suppliers to ensure you’re getting the best rates.
Offer More Takeaway & Delivery Options
With online orders increasing, offering takeaway can be a game-changer.
– Set up direct ordering on your website to avoid third-party commission fees.
– Introduce meal bundles to increase average order value.
– Promote takeaway deals on social media to drive more online sales.