Owning a restaurant might be a dream of every entrepreneur today, but it’s not an easy task. The expenses associated with a restaurant will often deter new restaurant owners. When seeing records like the income statement and balance sheet of a restaurant business, you may come across several terms that you’re not familiar with. However, understanding these terms is very important for you.
One term that is extremely important for you is – operational cost. Want to know what is an operational cost for a restaurant business? How these costs impact your business revenues? Well, we will provide you with a complete guide on operational costs. We will also make you understand how digital ordering platform like Swiggy can help you reduce your operational expenses and still make a profit.
What Are The Operational Costs?
Operational costs are those expenses required for the everyday administration and maintenance of a restaurant business. The different terms related to operational costs are operational expenses, operating expenditures, OPEX, operating expenses and more.
One of the essential components of operating expenses is COGS (The cost of goods sold). They are the direct expenses required to maintain your business’ services or goods. Operational cost breakdown for a restaurant business incorporates things like:
• Food Cost
• Rent & Utilities Cost
• Labor Cost
In this article, you will understand how to reduce operational costs for restaurant business with a digital ordering platform like Swiggy. You will also learn how operational cost-cutting by being on Swiggy can have a great impact on your business profitability.
Also Read: How To Successfully Sell On Swiggy?
• Swiggy brings Automated Technique to Accept Food Orders and Delivery
The digital ordering culture is flourishing each day and so is the giant online food ordering platform Swiggy. Their automated food ordering service can help you to streamline your order and delivery operations to improve profitability. Automation with receiving food order and quick delivery solution reduces the requirement of extra resources and also help you cut down their expenses. By assigning the best available delivery rider and quick food deliveries with Swiggy, you can bring your delivery costs down without spending on vehicles or hire additional staff.
All in all, Swiggy helps you eliminate excess labour costs and form better schedules while creating a more efficient restaurant.
Also Read: How To Successfully Sell On Petpooja?
• Swiggy Streamlines Delivery Operational Costs through Optimized Routes
Swiggy empowers restaurants and delivery riders to streamline food delivery with its real-time route optimization technique. This is one of the best ways for you to reduce your operational costs. The route tracking technique establishes the most optimized routes and assigns food orders based on the areas, traffic conditions, volumes, depots, estimated time of arrival etc. in the least possible time.
So say goodbye to the traditional way of food deliveries and switch to Swiggy’s ideal route optimization technique. This will let you schedule resources and time effectively and economically and also help you reduce operational costs, overhead expenses, as well as fuel expenses on the road.
• Swiggy Helps Bringing Back the Customer
In today’s modern technology world, customers want a completely transparent delivery system and expect to be updated regularly with everything from the type of delivery options, delivery costs, discount offers on food, coupons on repeat orders, etc. Here, Swiggy comes as a saviour for restaurant owners. It offers loyalty programmes like Swiggy POP, Swiggy Daily that will help restaurants drive growth by driving repeat orders. This will help you increase your customer base while saving your additional expenses on marketing and advertising to lure new customers every day.
Swiggy is focusing on advertising which will prove to be a new revenue stream for restaurants. The company has created a highly scaled in-house tech-stack system that displays ads to millions of online customers. The AI-based model will benefit restaurants by helping them to show relevant ads to their targeted customers.
Also Read: How To Successfully Sell On Zomato?
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