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Restaurant margins: where to cut costs without hurting the guest experience

More than four in ten Canadian restaurants are losing money or breaking even. Five places to find savings that guests will never notice.

Strategy & renewal illustration for the article

Restaurants Canada reports that 44% of restaurants were operating at a loss or breaking even in November 2025, compared with 12% in 2019. Food costs were a top concern for 88% of operators and labour costs for 89%.

Raising prices has limits when guests are already cutting back. The other lever is cost, but cutting portions or staff in a way guests notice costs more than it saves. These five areas usually hold savings that stay out of the guest’s view.

1. Know your cost for every plate

Cost each menu item from its recipe and update it when supplier prices change. Many owners find two or three popular dishes that sell well but earn little. Small changes to those dishes, such as portion consistency, a substitute ingredient or a price adjustment, often matter more than cuts across the whole menu.

2. Track waste for two weeks

Log what goes in the bin each day: spoiled stock, prep waste and plate returns. Two weeks of data usually points to a few items being over-ordered or over-prepped.

3. Schedule staff to real demand

Your point-of-sale system already records sales by hour. Compare it with your staff schedule to find shifts that are over- or under-staffed. Scheduling tools can build rosters from sales forecasts and let staff swap shifts without the manager making ten phone calls.

4. Review every subscription and fee

Delivery apps, reservation platforms, POS add-ons, music, marketing tools and payment fees add up. List them all with their monthly cost and what each one actually earns you. Commission-based delivery deserves a hard look: compare its cost with direct online ordering for your regular guests.

5. Buy smarter

Compare suppliers on your top 20 items at least twice a year, and order from par levels set by real usage rather than habit.

Plate costRecipe costing for every item
WasteTwo-week log
LabourSchedule to hourly sales
FeesApps, platforms, payments
BuyingPar levels and supplier review
Five places to find savings behind the kitchen door.
Ask yourself: do you know which of your five best-selling dishes earns the least?

How WIZAD can help: we review your menu costs, sales data, schedules and subscriptions, and set up simple tools your team keeps using after the project.

Source: Restaurants Canada, 2025 foodservice sales buffered by GST holiday as rising operating costs and tariffs cut into profits (February 2026).

Leo NguyenFounder / Lead Consultant, WIZAD Consulting