Chip away at avoidable overhead costs
Though the cost of food and labor tend to make the most headlines when it comes to current industry challenges, those aren’t the only budget line items on the minds of restaurant operators right now. According to the National Restaurant Association’s 2023 State of the Industry Report, a commanding majority of respondents are spending much more on overhead costs – including those for insurance, utilities, licenses and other items a restaurant needs to run – than they were a few years ago. While some costs are out of an operator’s control, there are a number of expenses that can be minimized with some planning. Consider insurance, for one. In addition to simply shopping around for the best quote, you can take steps to position your business for a better deal. While insurance prices are increasing across the board, insurers will provide better terms to a risk-aware business. Demonstrate your sound risk management by ensuring your fire alarm, sprinkler system and security cameras are up to date and functioning well. Document your staff’s safety training and provide evidence of your strong (or improved) accident record. If you do have a solid safety history, consider increasing your deductibles so you pay lower premiums each month. If your business has made major changes to its physical premises or how it operates, make sure you update your policies to account for those adjustments so you can avoid gaps in your coverage. Finally, if you’re in the market for several types of insurance, such as liability, property and cyber protection, for example, look for a provider who can offer a bundled package that can save you money – and ensure they have a solid record on claims payment.