It’s no secret that rising costs are hitting restaurants across Australia hard. From increasing wages and energy bills to skyrocketing supplier prices, it’s becoming tougher to maintain healthy margins, let alone grow.

But while these challenges are real, they’re not unbeatable.

In this blog, we’ll explore practical, proven strategies to combat rising operational costs without sacrificing quality or customer experience.

Use Your POS Data to Make Smarter Decisions

Your point-of-sale system is one of the most powerful tools you have – if you know how to use it.

Modern POS analytics give you real-time insight into:

• Sales trends

• Menu performance

• Labor efficiency

• Inventory usage

By identifying low-margin menu items, overstaffed shifts, or excessive food waste, you can make data-backed changes that cut costs fast.

POS and Payments Integration

The right decision here can literally save your restaurant thousands of dollars in fees if you shop around for a $0 Cost EFTPOS solution, integrated with your POS.

Streamline Your Menu

Bigger isn’t always better, especially when it comes to your menu. A bloated menu leads to:

• More inventory to manage

• Slower kitchen operations

• Increased food waste

Use menu engineering to identify and focus on your most profitable, most popular items. Remove or rework anything that’s underperforming or hard to execute consistently.

Negotiate Better Deals with Suppliers

Supplier contracts are not set in stone. If you’ve been working with the same vendor for years, it might be time to renegotiate or get competing quotes.

Quick wins:

• Join a restaurant buying group or co-op

• Ask for volume discounts or bundled pricing

• Shop local for seasonal cost savings

Also consider switching to digital invoicing or inventory systems that track prices over time – so you can spot increases and take action quickly.

Cross-Train Staff and Optimise Scheduling

Labor costs are rising, and understaffing hurts service, but overstaffing crushes your margins.

• Use your POS reporting to review hourly sales trends and align staffing levels accordingly

• Cross-train staff to handle multiple roles (e.g. barista + server, host + runner)

• Automate scheduling to reduce manual admin time

Invest in Technology That Saves Time and Money

The right tech doesn’t cost – it pays. Investing in automation can reduce labor and admin time significantly.

Tools that can help:

• Inventory management software (to reduce waste)

• Online ordering (to speed up service)

• Loyalty and CRM systems (to improve repeat business)
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• The right integrations for your venue
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• Staff scheduling platforms

Choose solutions that integrate with your POS so everything works together seamlessly.

Cut Utility and Equipment Costs

Energy bills are one of the fastest-rising operational costs in Australia. Look for ways to save without hurting the guest experience.

Tactics:

• Upgrade to energy-efficient fridges, ovens, and dishwashers

• Use programmable thermostats and timers

• Encourage staff to shut down unused equipment during off-hours

Even small changes, like switching to LED lighting, can lead to big savings over time.

Drive Revenue During Off-Peak Hours

Sometimes the best way to beat rising costs is to bring in more revenue, especially during quiet periods.

Ideas to fill the gaps:

• Introduce happy hour deals or early bird specials

• Host small events or private dining experiences

• Offer take-home meal kits or bundled family dinners

• Partner with local delivery services or community groups

Use your POS to measure what works, and double down on what drives results.

Every Dollar Counts

When costs are rising across the board, survival comes down to efficiency and adaptability. The most successful restaurant owners are the ones who:

• Track their data closely

• Make strategic cuts (not random ones)

• Invest in systems that pay for themselves

There’s no single fix, but together, these small improvements can add up to serious savings and sustainable growth.