Save inventory, time and labor costs with IoT monitoring | modern restaurant management

Inflation quickly changes everyone’s behavior. People decide to eat at home and buy less. With people dining out less, some restaurateurs are increasingly trying to cut costs to stay afloat. This article discusses how implementing automation tools like IoT monitoring can save your business money, protect your inventory, and save time.

Rising overhead costs drive up prices

Restaurant owners and operators are facing dramatically rising costs from many angles simultaneously. Operational profitability is hard to come by at times like this, especially for smaller restaurants.

Last May, the inflation rate in the United States reached 8.6%, the highest in 40 years. Inflation leads to an increase in raw material prices and labor costs, which are among a restaurant’s largest expenses. Naturally, restaurants are not in a position to waste labor, energy, or cost.

Constantly rising costs are forcing restaurants to raise prices as they spend more on materials. If you are a restaurant that makes sandwiches or subs, the inflated price of meat will increase the cost of your sandwich because it is now more expensive to produce.

In addition, labor costs are also skyrocketing. There is an indirect inflationary pressure that forces local businesses and restaurants to raise wages because people can no longer afford the same things as before. There is also an ongoing labor shortage that has lasted since 2020, which also drives up labor costs.

Preventing food waste can save tons of money

Typically, when companies are doing well, they can afford a little slippage and some margin loss. In times of inflation, every penny counts. A power outage or an incorrect scale of events could lead to serious financial obstacles for some restaurateurs.

Foodservice businesses lose an average of 28-35% of their revenue per year to pre-consumer food waste. Food waste also accounts for a third of overall restaurant spend per year, weighing an average of 50,000 pounds per location.

IoT monitoring gives operators “peace of mind”

The 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, anytime.

IoT sensors and monitoring systems in used restaurants primarily measure temperature and humidity in cold stores, helping to prevent loss events and improve compliance in your restaurant operations. Because data is stored 24/7 and easily accessible, systems like these provide visibility into units that need maintenance before a big failure.

An important benefit of IoT technologies is the reduction of manual tasks and time. Perform temperature checks – constantly checking equipment to ensure its optimum temperature is an essential daily task. An automatic sensor can easily collect and store data about your cold storage, which can be used to assess equipment performance, ensure consistent product quality, and identify staffing gaps. It also allows management to reallocate time to serving customers, preparing meals, and keeping your establishment clean.

Overall, IoT remote monitoring can reduce labor costs through automation and help operators understand their equipment and energy usage. As an operator, you will be able to detect failures quickly, protect your inventory and reduce time spent on tasks, which helps increase margins.

About Imogene T. Bishop

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