Food waste is one of the most pressing challenges in the restaurant industry. It affects the business’ profitability and sustainability. It also has significant ecological, planetary and human implications. Every year, restaurants worldwide generate millions of tons of food waste, contributing to ecRead more
Food waste is one of the most pressing challenges in the restaurant industry. It affects the business’ profitability and sustainability. It also has significant ecological, planetary and human implications. Every year, restaurants worldwide generate millions of tons of food waste, contributing to economic losses and environmental harm. At the same time, the demand for food grows and 1 in 11 people on Earth are going hungry.
1. Track and Monitor Waste Daily
2. Store Food Properly
3.Plan a Smart Menu
Foodstuff businesses can lose money quietly through spoilage, overstocking, poor storage and buying more than customers can absorb. Some practical ways to reduce losses are: 1. Know your fast and slow sellers. Buy more of products that move quickly and reduce the quantity of slow-moving items. 2. UsRead more
Foodstuff businesses can lose money quietly through spoilage, overstocking, poor storage and buying more than customers can absorb.
Some practical ways to reduce losses are:
1. Know your fast and slow sellers. Buy more of products that move quickly and reduce the quantity of slow-moving items.
2. Use FIFO — First In, First Out. Sell older stock before newer stock so products don’t remain until they spoil.
3. Buy according to demand. Don’t buy large quantities simply because the supplier offers a cheaper price. A discount is not a saving if part of the goods eventually gets wasted.
4. Store each product properly. Protect food from moisture, heat, pests and contamination. Different food items have different storage requirements.
5. Record daily stock. At the end of each day or week, compare what you bought, what you sold and what is remaining. This helps you identify where losses are happening.
6. Monitor expiry dates and damaged goods. Separate items that need urgent attention and create a plan to sell or use them before they become a total loss, where appropriate.
7. Calculate your real profit. Don’t look only at selling price minus buying price. Include spoilage, transportation, packaging, rent and other business expenses.
The goal is not simply to sell more. It is to make sure that more of what you buy actually turns back into cash and profit.
I have heard of so many complaints about this and there are people who have scaled above it and one thing I noticed about them is simple That particular product that moves faster they buy it at a reasonable quantity and the one that doesn't move fast they buy it little. In essence they buy what moveRead more
I have heard of so many complaints about this and there are people who have scaled above it and one thing I noticed about them is simple
That particular product that moves faster they buy it at a reasonable quantity and the one that doesn’t move fast they buy it little.
In essence they buy what moves faster in the locality they are in order to reduce wastage. So one thing you should do is to get what people comes for and don’t over buy it so it doesn’t spoil but also don’t under purchase so you don’t loose your customers.
A foodstuff business can be profitable, but poor stock management, wastage and price changes can quickly eat into the profit. 1. Food spoilage Items like tomatoes, pepper, vegetables and some fruits can spoil quickly. Remedy: Don't overstock perishable goods. Buy according to demand, store them propRead more
A foodstuff business can be profitable, but poor stock management, wastage and price changes can quickly eat into the profit.
1. Food spoilage
Items like tomatoes, pepper, vegetables and some fruits can spoil quickly.
Remedy: Don’t overstock perishable goods. Buy according to demand, store them properly and sell older stock first.
2. Price fluctuations
The price of rice, beans, onions, garri and other food items can change frequently.
Remedy: Monitor market prices regularly and avoid putting all your money into one product at once.
3. Food wastage
Poor handling, damaged packaging and expired products can reduce profit.
Remedy: Inspect goods when buying, handle them carefully and use the FIFO method—First In, First Out, meaning older stock is sold before newer stock.
4. Theft and inaccurate records
You may think the business is making money while stock is disappearing.
Remedy: Keep daily records of purchases, sales, expenses and remaining stock. Don’t rely on memory.
5. Selling on credit
Giving too many customers goods on credit can affect your cash flow.
Remedy: Set clear credit limits and payment dates, or focus mainly on cash sales.
6. Poor pricing
Selling without calculating transportation, storage, packaging and other costs can make a business appear profitable when it isn’t.
Remedy: Calculate the actual cost of each product before setting your selling price.
Example:
If you buy goods for ₦500,000 and spend another ₦50,000 on transportation and other expenses, your real cost is ₦550,000. If you sell everything for ₦580,000, your profit is only ₦30,000, not ₦80,000.
The main lesson: In a foodstuff business, making sales is not enough. You have to control wastage, stock, expenses, pricing and cash flow. Small losses every day can become a big loss at the end of the year.
Food waste is one of the most pressing challenges in the restaurant industry. It affects the business’ profitability and sustainability. It also has significant ecological, planetary and human implications. Every year, restaurants worldwide generate millions of tons of food waste, contributing to ecRead more
Food waste is one of the most pressing challenges in the restaurant industry. It affects the business’ profitability and sustainability. It also has significant ecological, planetary and human implications. Every year, restaurants worldwide generate millions of tons of food waste, contributing to economic losses and environmental harm. At the same time, the demand for food grows and 1 in 11 people on Earth are going hungry.
1. Track and Monitor Waste Daily
See less2. Store Food Properly
3.Plan a Smart Menu
Foodstuff businesses can lose money quietly through spoilage, overstocking, poor storage and buying more than customers can absorb. Some practical ways to reduce losses are: 1. Know your fast and slow sellers. Buy more of products that move quickly and reduce the quantity of slow-moving items. 2. UsRead more
Foodstuff businesses can lose money quietly through spoilage, overstocking, poor storage and buying more than customers can absorb.
Some practical ways to reduce losses are:
1. Know your fast and slow sellers. Buy more of products that move quickly and reduce the quantity of slow-moving items.
2. Use FIFO — First In, First Out. Sell older stock before newer stock so products don’t remain until they spoil.
3. Buy according to demand. Don’t buy large quantities simply because the supplier offers a cheaper price. A discount is not a saving if part of the goods eventually gets wasted.
4. Store each product properly. Protect food from moisture, heat, pests and contamination. Different food items have different storage requirements.
5. Record daily stock. At the end of each day or week, compare what you bought, what you sold and what is remaining. This helps you identify where losses are happening.
6. Monitor expiry dates and damaged goods. Separate items that need urgent attention and create a plan to sell or use them before they become a total loss, where appropriate.
7. Calculate your real profit. Don’t look only at selling price minus buying price. Include spoilage, transportation, packaging, rent and other business expenses.
The goal is not simply to sell more. It is to make sure that more of what you buy actually turns back into cash and profit.
See lessI have heard of so many complaints about this and there are people who have scaled above it and one thing I noticed about them is simple That particular product that moves faster they buy it at a reasonable quantity and the one that doesn't move fast they buy it little. In essence they buy what moveRead more
I have heard of so many complaints about this and there are people who have scaled above it and one thing I noticed about them is simple
That particular product that moves faster they buy it at a reasonable quantity and the one that doesn’t move fast they buy it little.
In essence they buy what moves faster in the locality they are in order to reduce wastage. So one thing you should do is to get what people comes for and don’t over buy it so it doesn’t spoil but also don’t under purchase so you don’t loose your customers.
I believe you understand my drive
See lessA foodstuff business can be profitable, but poor stock management, wastage and price changes can quickly eat into the profit. 1. Food spoilage Items like tomatoes, pepper, vegetables and some fruits can spoil quickly. Remedy: Don't overstock perishable goods. Buy according to demand, store them propRead more
A foodstuff business can be profitable, but poor stock management, wastage and price changes can quickly eat into the profit.
1. Food spoilage
Items like tomatoes, pepper, vegetables and some fruits can spoil quickly.
Remedy: Don’t overstock perishable goods. Buy according to demand, store them properly and sell older stock first.
2. Price fluctuations
The price of rice, beans, onions, garri and other food items can change frequently.
Remedy: Monitor market prices regularly and avoid putting all your money into one product at once.
3. Food wastage
Poor handling, damaged packaging and expired products can reduce profit.
Remedy: Inspect goods when buying, handle them carefully and use the FIFO method—First In, First Out, meaning older stock is sold before newer stock.
4. Theft and inaccurate records
You may think the business is making money while stock is disappearing.
Remedy: Keep daily records of purchases, sales, expenses and remaining stock. Don’t rely on memory.
5. Selling on credit
Giving too many customers goods on credit can affect your cash flow.
Remedy: Set clear credit limits and payment dates, or focus mainly on cash sales.
6. Poor pricing
Selling without calculating transportation, storage, packaging and other costs can make a business appear profitable when it isn’t.
Remedy: Calculate the actual cost of each product before setting your selling price.
Example:
If you buy goods for ₦500,000 and spend another ₦50,000 on transportation and other expenses, your real cost is ₦550,000. If you sell everything for ₦580,000, your profit is only ₦30,000, not ₦80,000.
The main lesson: In a foodstuff business, making sales is not enough. You have to control wastage, stock, expenses, pricing and cash flow. Small losses every day can become a big loss at the end of the year.
See less