10 Hidden Costs That Are Killing Your Restaurant Profits

Even busy restaurants can lose money. Often, the problem isn’t lack of customers — it’s hidden costs quietly eating away at your profits.

Here are the 10 most common profit-killers and how to stop them.

1. Delivery Platform Commissions

• Platforms like Uber Eats & Deliveroo can take up to 35% per order.
  
  
• Use direct ordering channels to protect margins.
  
  

2. Rising Supplier Costs

• Prices creep up slowly, and many owners don’t notice.
  
  
• Compare supplier rates regularly and negotiate deals.
  
  

3. Excessive Food Waste

• Over-ordering and poor portion control can cost thousands monthly.
  
  
• Track usage vs. sales to cut waste.
  
  

4. Unnecessary Overtime

• Labour creep happens when staff scheduling isn’t matched to demand.
  
  
• Use rota data to optimise shifts.
  
  

5. Delivery Packaging Overspend

• Premium packaging eats into takeaway margins.
  
  
• Switch to bulk suppliers or eco-friendly cost-efficient options.
  
  

6. Underutilised Staff Hours

• Quiet days mean wasted wages.
  
  
• Track revenue per labour hour to measure productivity.
  
  

7. Marketing That Doesn’t Convert

• Paid ads without clear ROI drain resources.
  
  
• Use data to double down on high-performing channels.
  
  

8. Utility Inefficiencies

• Outdated appliances, poor insulation, and energy waste spike bills.
  
  
• Audit energy usage quarterly.
  
  

9. VAT Mistakes

• Mismanaging VAT can lead to unexpected tax bills.
  
  
• Use automated categorisation to stay compliant.
  
  

10. Untracked Small Expenses

• Subscription creep, broken equipment, and minor purchases add up fast.
  
  
• Regularly review your P&L for leaks.
  
  

How to Spot and Fix Hidden Costs

You can’t fix what you don’t track.
With Alpacap, you can:

• Automatically categorise transactions
  
  
• Highlight unusual cost spikes
  
  
• Set up margin alerts when profits drop
  
  

Key Takeaways

• Even successful restaurants can lose money to hidden costs.
  
  
• Regularly review your P&L to spot profit leaks early.
  
  

Automate cost tracking with Alpacap to protect your margins.