Why better food cost visibility is the #1 resolution for multi-unit restaurants

Food cost management is a huge headache—fluctuating prices, inconsistencies between vendor pricing and trying to manage inventory across multiple locations. It’s. A. Lot. But if you're not tracking food costs consistently, you're basically flying blind on a one-way trip to Slim Marginville.

It doesn’t have to be this way. The restaurant groups that make food cost visibility a priority in 2025 will have a serious competitive edge—like, the crispy burnt edge of a perfect lasagna corner. Anyone else craving warm cheese this time of year? Just us?

Let’s talk about why it matters and how you can make food cost tracking easier (hint: we’re here to help!).

Better food cost tracking isn’t just about cutting costs—it’s about making smarter, more profitable decisions across your entire restaurant group. Here’s what better visibility unlocks:

1. Real-time insights into food costs – Know exactly where your money is going and adjust before it’s too late.
2. Stronger vendor relationships – Spot price fluctuations and negotiate better deals with data to back you up.
3. Better inventory control – Say goodbye to overordering and food waste.
4. More profitable menu decisions – Get precise numbers on dish costs and tweak your menu for better margins.
5. Increased efficiency – Free your team from the black hole of manual invoice entry and tracking.
6. Scalability and consistency – Keep all your locations aligned with standardized purchasing, pricing and inventory processes.
7. More predictable profitability – No more end-of-month surprises when your food costs are higher than expected.
8. Faster reaction to market changes – If a key ingredient spikes in cost, you can pivot on the fly instead of waiting until it eats away your profits.
9. Better team accountability – Managers at every location will have clear, data-driven insights into costs and waste, making it easier to optimize operations.
10. Optimized liquor costs and control – Beverage costs can be just as volatile as food costs, and liquor inventory optimization can help you lock in higher margins and reduce waste.

Ok, how do we go get all these things? With these six key strategies:

1. Get real-time cost tracking with a Restaurant Management System

If you’re still using spreadsheets or relying on gut feelings to track food costs, it’s time for an upgrade. A restaurant management system (RMS) like MarginEdge pulls everything—purchasing, invoices, inventory and accounting—into one place, so you can see exactly where your money is going.

With an RMS, you can:

• See real-time food and recipe costs — live data about inventory, sales, and vendor pricing makes sure you can spot margin leaks across multiple locations.
• Vastly expedite and streamline invoice processing — we’re talking automated invoice capture and coding, plus much less admin time (which is key for agile financial management).
• Eliminate back-office paperwork (yes, really) — digital ops help avoid lost or damaged documents, ensuring consistency and accountability across locations.

2. Standardize recipes and portioning across locations

Inconsistent portioning is a hidden profit killer. If one of your locations serves a 6-ounce portion and another serves 8 ounces, your margins get thrown out of whack. An RMS helps track recipe costs and keep portioning consistent, so your margins stay where they should be.

Here’s how to tighten up portioning (beyond the basics like using a scale & consistent recipes):

• Incorporate Kitchen Display Systems (KDS) for precision — these let you keep portioning and recipe instructions front and center in real time during service.
• Monitor shrinkage and prep waste (like trims or unused ingredients) to make sure you’re not over-portioning during prep.
• Consider pre-portioning high-variance ingredients to reduce on-the-fly inconsistencies — think items like proteins, cheese or higher-ticket garnishes.
• Cross-train staff on portioning and plating so everyone can watch for inconsistencies before dishes reach your guests.
• Use data from MarginEdge inventory tracking — if one location consistently runs out of a certain ingredient before others, that might be a sign of portion drift.

Want more? Dive deep into plate and menu costing here.

3. Monitor vendor pricing and negotiate contract pricing

Whether we like it or not, product prices are super variable—so are you keeping up? Here are a few ways to stay ahead:

• If you’re using different vendors across locations, be sure to compare pricing throughout to spot savings opportunities — and consolidate purchases across units when you can if geography makes sense.
  
• Work with vendors on bulk discounts or alternative product recommendations if costs rise; or, aim for multi-month or annual contracts to lock in prices and boost stability.
  
• Track seasonal pricing trends — MarginEdge can help you keep tabs on fluctuations for key ingredients, so you can shift your menu or purchasing strategy ahead of time (when possible).
  

4. Reduce food waste with smart inventory management

Food waste is basically throwing money in the trash. When you have tighter tabs on inventory tracking, you can identify slow-moving items before they expire, optimize ordering based on actual usage (vs estimated) and reduce overordering to free up that magic stuff called cash.

Here are some ideas to cut waste:

• Conduct routine waste logs so you can spot problem areas — then, come up with a centralized system to track food waste and patterns across all your locations.
• Cross-use or repurpose ingredients if you see gaps in ordering and menu performance.
• Cross-train staff on waste reduction strategies and encourage sharing of successful ideas across locations so everyone’s part of the broader culture of low waste.

MarginEdge can help you track food waste & variance easily.

5. Conduct quick, weekly inventory audits

Many restaurant groups only check inventory at the end of the month—by then, it’s too late to fix anything. Weekly, lightweight inventory checks let you catch issues early. With MarginEdge, these audits take minutes instead of hours, so you get real-time insights without eating up your team’s time.

Here’s the high-level:

• Assign one team member per shift to spot-check key items.
• Focus on high-cost or high-variance ingredients first.
• Use MarginEdge to compare expected vs. actual inventory levels to pinpoint discrepancies.

Ready to level-up your inventory? These best practices are a great place to start.

Bonus ✨ Track liquor inventory with precision

Liquor is one of the highest-margin parts of your biz. Over-pouring, spillage and even theft can cut deep into profits. A smart liquor inventory system like our Freepour by MarginEdge smart scale lets you track liquor usage in real-time, ensuring your bar operations stay as optimized as your kitchen.

Key actions:

• Compare actual vs. expected liquor usage to identify shrinkage.
  
• Train bartenders on proper pour techniques to reduce over-pouring.
  
• Adjust pricing or recipes when cocktail component costs fluctuate to maintain margins.
  

Learn more about Freepour.

Take control of your food costs

Ignoring food cost tracking and visibility doesn’t just hurt profits—it puts your whole operation at risk (sorry to be the drama queens over here). Without real-time insights, you’re stuck with higher costs, slimmer margins, inconsistent customer experiences and scaling roadblocks.

But the restaurant groups that prioritize food cost visibility will be set up to win—stronger margins, better efficiency and way less stress. This isn’t just a nice to have. It’s your biggest competitive advantage in 2025.