Why do restaurants feel so expensive right now—and are they actually making more money? In other words, what’s really happening with the restaurant scene in today’s economy?
In this episode of Hospitality Insight with The SilverFox Podcast, we break down the real economics of the hospitality industry, from food costs and labour to rent, VAT, and shrinking profit margins. When it comes to restaurant pricing, understanding how restaurants operate is crucial. If you’ve ever wondered why a simple night out feels like a luxury, this episode reveals the truth behind pricing, hospitality costs, and industry challenges.
Perfect for hospitality students, owners, chefs, and food lovers, this episode delivers honest, real-world insight into the food and beverage industry, restaurant business models, and hospitality trends in South Africa and globally. This podcast is a must-listen for anyone curious about restaurant operations and how they shape the hospitality sector.
No fluff. No filters. Just the reality of running a restaurant today, where each restaurant faces many modern challenges.
hospitality podcast, food and beverage, costs, hospitality insights, chef life, business, hospitality careers, food industry trends, restaurant pricing, hospitality South Africa, restaurants in the news
Practical Ways Restaurants Can Reduce Costs
Running a restaurant today requires smart cost control without compromising the guest experience. Here are key strategies for restaurant owners:
1. Refine Your Menu
Remove low-performing dishes and focus on high-margin items. A smaller menu reduces waste and improves consistency in the restaurant kitchen.
2. Control Food Waste
Implement portion control, daily stock checks, and creative use of surplus ingredients. Waste quickly eats into profit for any restaurant.
3. Optimise Labour
Align staffing with demand using sales data. Cross-train staff to improve efficiency without overstaffing the restaurant.
4. Review Supplier Costs
Regularly negotiate pricing and consider seasonal or local alternatives to manage input costs for the restaurant business.
5. Reduce Energy Usage
Use energy-efficient equipment and maintain appliances properly to cut utility expenses for the restaurant and its team.
6. Track Prime Cost
Monitor food and labour costs weekly. Ideally, these should sit between 55%–65% of revenue, ensuring restaurant finances stay healthy.
7. Use Technology
Leverage systems for inventory, scheduling, and reporting to reduce errors and improve control within your restaurant.
8. Maximise High-Margin Sales
Promote drinks, desserts, and add-ons through subtle upselling as part of your restaurant sales strategy.
9. Price Strategically
Adjust pricing when necessary—sustainable businesses require realistic pricing for their restaurant offerings.
Final Thought:
Success in hospitality today depends on balancing passion with strong financial discipline at every restaurant.
Stephen is a hospitality professional from Johannesburg South Africa. His career started with THF hotels in the UK and subsequently with the Southern Sun Hotel group in Johannesburg. Stephen’s first steps into entrepreneurship was Hickmore Recruitment / CareerMap, a leading supplier of Senior and Exec recruitment services. Stephen was a founder of Pple Hospitality (formerly HSC) the largest Hospitality Industry full-service outsourced staffing company in South Africa. In March 2020 Stephen became a director and owner of the Swiss Hotel School South Africa, which is now his full time passion.
SHS – Institute of Hospitality Management
SHS – Institute of Culinary Arts
Stephen writes for a number of publications on food and hospitality industry matters, trends and opinions. He also hosts a Podcast on Spotify “Hospitality Insight with The SilverFox”
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