Inflation is promptly changing the behavior of everyone. People are deciding to eat- at home and purchase less. With people dining out less, some restaurant owners are increasingly trying to cut costs to stay afloat. This article will cover how implementing automation tools like IoT monitoring can save your business money, protect your inventory, and save time.
Rising Overhead Costs Are Hiking up Prices
Restaurant owners and operators are facing considerable rising costs from many angles simultaneously. Operational profitability is hard to obtain in moments like this, especially for smaller restaurants.
This past May, the US inflation rate rose to 8.6 percent, the highest in 40 years. Inflation drives price increases for raw materials and labor costs, which are some of a restaurant's most significant expenses. Understandably, restaurants are in no position to waste labor, energy, or cost.
The steady increase in cost is forcing restaurants to raise their prices because they’re spending more on materials. If you’re a restaurant that makes sandwiches or subs, the inflated price of meat will increase the cost of your sandwich because it’s now more expensive to produce.
In addition, labor costs are skyrocketing as well. There’s an indirect pressure from inflation which forces local companies and restaurants to raise wages as people can’t afford the same things they once could. There’s also an ongoing labor shortage that has been ongoing since 2020, which also drives labor costs up.
Preventing Food Waste Can Save Tons of Money
Typically, when businesses are doing well, they can afford a bit of slippage and some loss in margin. During times of inflation, every cent matters. A power outage or incorrect scale of events could cause severe financial barriers for some restaurant owners.
Food service businesses, on average, lose 28-35 percent of their income annually from pre-consumer food waste. Food waste also accounts for a third of overall restaurant expenses per year, weighing an average of 50,000 pounds per location.
IoT Monitoring Gives Operators 'Peace of Mind'
IoT is a network of embedded technologies that interact with their internal environment. An IoT remote monitoring device will allow operators to monitor critical business items such as inventory, refrigeration, HVAC from anywhere, at any time.
IoT sensors and monitoring systems in used restaurants primarily measure temperature and humidity across cold storage, ultimately preventing loss events and improving compliance in your foodservice operations. Because data is stored 24/7 and is easily accessible, systems like these provide visibility into which units need maintenance before a big breakdown.
A significant benefit of IoT technologies is a reduction in manual tasks and time. Take temperature checks – constantly checking equipment to ensure its optimal temperature is an essential daily task. An automatic sensor can easily collect and store data on your cold storage, which helps evaluate equipment performance, ensure consistent product quality, and identify staffing gaps. This also allows management to reallocate time to serving customers, preparing meals, and keeping your establishment clean.
Overall, IoT remote monitoring can alleviate labor costs with automation and help operators understand their equipment and energy consumption. As an operator, you’ll be able to catch failure early, protect your inventory and reduce time on tasks – which all help with margins.