6 Ways to Lower your COGS (Sponsored Post)

Cost management is an essential skill for all restaurateurs. For restaurants and cafes, letting your Cost Of Goods Sold, or COGS, run out of control is a kiss of death for the business, because COGS will directly impact your profit margins and inventory. Businesses with little to no inkling of how they’re handling their COGS often find themselves in a pickle because they're unaware of their restaurant/cafe's financial health and performance.

What exactly is COGS?COGS is essentially the total cost of all the ingredients that a restaurant/cafe uses to create menu items, given a time period. Industry-wide, an estimated one-third of a restaurant/cafe’s gross revenue is dedicated to paying off COGS. COGS alongside other spending areas like staffing, utilities, rent, etc are taken out from your restaurant/cafe’s gross revenue to work out your net profit.

Restaurant Industry Costs

Since factors like seasonality directly affect availability and the cost of ingredients, your…