![How to plan and track the budget of your deli [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-1_9a1eccf2-6723-4411-9d42-e8d1d1df1c82.png?v=1715856369&width=1100)
If you don’t plan and track your deli budget properly, you're setting yourself up for failure.
When we developed our strategy pack for deli owners, we saw a lot of deli owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial revenue.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your deli's finances around and set you on the path to success!
Get the budget tracker tailored for delis
Most deli owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for delis
Here is an example of a (very) detailed budget for a deli, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for deli space | $3,000 | $36,000 |
| Electricity | Power consumption for kitchen & display cases | $600 | $7,200 |
| Water | Water usage | $150 | $1,800 |
| Gas | Gas for cooking and heating | $200 | $2,400 |
| Internet & Phone | Internet service and business phone | $100 | $1,200 |
| Waste Removal | Garbage and recycling services | $80 | $960 |
| Pest Control | Monthly pest control services | $40 | $480 |
| Insurance | Property and liability insurance | $400 | $4,800 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Manager | 1 | $3,500 | $3,500 | $42,000 |
| Sandwich Makers | 3 | $2,500 | $7,500 | $90,000 |
| Cashiers | 2 | $2,000 | $4,000 | $48,000 |
| Dishwasher | 1 | $1,800 | $1,800 | $21,600 |
| Delivery Drivers | 2 | $2,000 | $4,000 | $48,000 |
3. Food & Beverage Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Food Inventory | Fresh produce, meats, cheeses, etc. | $8,000 | $96,000 |
| Beverage Inventory | Soft drinks, coffee, tea, etc. | $1,500 | $18,000 |
| Condiments & Spices | Seasonings, sauces, dressings, etc. | $400 | $4,800 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $150 | $1,800 |
| Paper Goods | Napkins, paper towels, to-go containers | $250 | $3,000 |
| Kitchen Utensils | Smallwares, cutlery, and kitchen tools | $150 | $1,800 |
| Dishware & Glassware | Plates, bowls, glasses, etc. | $150 | $1,800 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $250 | $3,000 |
| Social Media Management | Managing social media accounts | $400 | $4,800 |
| Print Advertising | Flyers, posters, newspaper ads | $150 | $1,800 |
| Website Maintenance | Hosting, domain, updates | $80 | $960 |
| Email Marketing | Email campaigns and newsletters | $100 | $1,200 |
| Promotional Events | Special events and promotions | $150 | $1,800 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of kitchen equipment | $400 | $4,800 |
| Uniforms | Staff uniforms and aprons | $150 | $1,800 |
| Licenses & Permits | Health permits, business licenses, etc. | $80 | $960 |
| POS System | Point of Sale software and hardware | $120 | $1,440 |
| Contingency Fund | Emergency repairs and unexpected costs | $400 | $4,800 |
| Office Supplies | Stationery, pens, printer ink, etc. | $80 | $960 |
| Staff Training | Training programs and materials | $150 | $1,800 |
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What are the biggest expenses for a deli?
Be mindful of these significant expenses. Here are five major costs every deli owner needs to consider, along with some tips on how to manage them effectively.
- Food and ingredient costs These can take up a large portion of your budget. You're dealing with perishables, and prices can vary based on seasonality, supply chain issues, and quality. To keep these costs under control, focus on portion control, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by buying too much or opting for premium ingredients that don’t add enough value.
- Staffing your deli Your staff is essential, but paying for their wages, benefits, and training can be costly. This expense is always significant because you need a certain number of employees to provide excellent service and keep operations running smoothly. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and poor service.
- Rent and utilities of your deli Prime locations come with high rent, but they can attract more customers. Utilities like electricity, gas, and water are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient appliances and lighting. Overspending often happens when you choose a location that's too large or too upscale for your needs.
- Marketing You need to spread the word about your deli, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we provide in our pack. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Equipment and maintenance costs This includes everything from deli slicers to display cases. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and customer satisfaction. Optimize by investing in durable, energy-efficient equipment and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your deli?
Here are practical tips to help you, as a deli owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Food Costs | Source ingredients from local suppliers and farmers to get fresh, seasonal products at competitive prices. |
| Labor Costs | Use scheduling software to manage staff hours efficiently and minimize overtime. |
| Utilities | Switch to LED lighting and energy-efficient refrigeration units to cut down on utility bills. |
| Marketing | Engage with your community through social media contests for your deli and partner with local influencers for organic promotion. |
| Cleaning Supplies | Train your team on the proper use of cleaning supplies to minimize waste and reduce costs. |
| Equipment Maintenance | Keep a maintenance log for regular checks and servicing of deli equipment to avoid costly repairs. |
| Rent/Mortgage | Negotiate lease terms during renewal or explore more affordable locations if necessary. |
| Insurance | Review your insurance policies regularly to ensure they meet your current needs and compare rates annually. |
| Packaging | Opt for cost-effective, eco-friendly packaging and offer discounts to customers who bring their own containers. |
| Display Cases | Invest in high-quality, durable display cases that can withstand frequent use and showcase your products effectively. |
| POS System | Select a POS system that offers essential features with low transaction fees and integrates seamlessly with other systems. |
| Staff Training | Conduct regular in-house training sessions and utilize free online resources to keep your team updated. |
| Waste Management | Implement a food waste tracking system to minimize waste and consider donating excess food to local shelters. |
| Technology | Invest in multi-functional kitchen appliances and use deli management software for orders and inventory tracking. |
| Linen and Laundry | Partner with a cost-effective linen service and consider using reusable napkins and tablecloths. |
| Menu Printing | Use digital menu boards or QR codes for menu access to save on printing costs. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes efficiently to reduce fuel costs and maximize delivery efficiency. |
| Office Supplies | Buy supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage. |
| Pest Control | Schedule regular pest control services and maintain cleanliness standards to prevent infestations. |
| Music and Entertainment | Use a streaming service for background music and host local musicians during off-peak times to attract customers. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best delis in the world!
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Expenses that are just useless for a deli
Yes, some expenses for your deli are just unnecessary. They don't contribute to increasing revenue or improving customer experience.
| Deli Expense | Reason It's Useless |
|---|---|
| Gourmet Display Cases | High-end display cases are costly and don't necessarily attract more customers. |
| Premium Cheese Varieties | Unless you cater to a niche market, most customers are satisfied with popular, mid-range cheese options. |
| Extensive Sandwich Menu | A large menu increases inventory costs and leads to more food waste. |
| Top-Tier Slicing Machines | High-end slicing machines are not always necessary and can be cost-prohibitive. |
| Paper Flyers | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your deli. |
| Multiple Apron Styles | Having various apron styles increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for music or magazines often go unnoticed by customers. |
| Exotic Meats | Using rare meats can inflate costs and complicate supply chains. |
| Costly Seating | High-end seating is not always appreciated by customers and can be a significant expense. |
| Custom Printed Wrapping Paper | Personalized wrapping paper is a minor detail that most customers overlook, and it can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Bottled Water | Most customers are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Counter Displays | Elaborate counter displays are often ignored by customers and add to the cost. |
| High-End Utensils | Luxury utensils are prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Menu Designs | Frequently redesigning menus is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Catering Equipment | Specialized catering equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your deli!
Managing a budget for a deli when funds are tight can feel overwhelming. It's like being trapped where any unexpected expense can throw you off balance.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always scrambling to cover costs. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, pinching pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to invest back into your deli.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of delis just like yours. Get them now!
Make your deli more profitable
We have studied the strategies of the best delis in the world. All their tactics are explained in our pack!
