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Restaurant G&A Reduction: Your Questions Answered
October 21, 2025
With tariffs, labor shortages, and rising occupancy costs squeezing margins in 2025, restaurant operators are searching for controllable levers to pull. As outlined in our recent analysis, general and administrative (G&A) expenses offer the most actionable opportunity for cost relief, but many operators have questions about where to start and what realistic outcomes look like. Here are answers to the most common questions we’re hearing:
To assess your position, calculate your total G&A spend across finance, accounting, IT support, and administrative overhead as a percentage of revenue. If you’re spending more than 5% on back-office functions for a multi-unit operation, or more than 8-10% for smaller operators, there’s likely significant opportunity for optimization. Even operators near benchmark levels can often reduce costs 15-25% through strategic outsourcing and automation.
On the finance side, automating invoice processing and accounts payable workflows can reduce manual data entry by 60-70%, freeing your team to focus on analysis rather than transactions. Similarly, implementing automated bank reconciliations and expense categorization can cut monthly close time in half while reducing errors.
For IT, moving to managed service providers for help desk support and system monitoring typically reduces incident resolution time by 40% while cutting costs 15-20%. These are all changes that can be implemented within weeks, not months.
Outsourcing F&A functions typically reduces costs 20-40% or more while improving accuracy and reporting speed. For a $50 million restaurant group spending 4% of revenue on finance, that translates to $400,000-$800,000 in annual savings. The key is finding partners with restaurant industry expertise who understand the unique challenges of multi-unit operations, high transaction volumes, and complex cost allocations.
Many operators adopt a hybrid model: outsourcing transactional work like AP, AR, and payroll processing while keeping strategic finance leadership in-house. This approach captures most of the cost benefits while maintaining control over financial strategy and relationships with lenders and investors.
The solution involves three strategies. First, consolidate to platforms that integrate multiple functions rather than managing point solutions. Second, leverage managed IT services to handle routine support, monitoring, and cybersecurity rather than maintaining full-time IT staff for every location. Third, implement (or leverage an MSP that already has) AI-enabled automation for routine IT tasks like system health monitoring, backup verification, and patch management.
These approaches typically reduce total cost of ownership (TCO) by 10-20% while actually improving system uptime and security posture. The bonus: you’re no longer competing for scarce IT talent in tight labor markets.
The larger strategic benefit emerges over 6-12 months as operators reinvest savings into revenue-generating activities like menu innovation, marketing, and customer experience improvements. In today’s margin-compressed environment, freeing up even 1-2% of revenue from G&A provides crucial flexibility for pricing strategy and competitive positioning.
Most operators find that tackling F&A automation and software consolidation first builds momentum and demonstrates ROI, making it easier to gain buy-in for larger transformations like outsourcing or IT infrastructure changes.
In an industry facing unprecedented headwinds from tariffs, labor constraints, and consumer pullback, G&A represents the controllable lever restaurant operators can’t afford to ignore. The question isn’t whether to act—it’s how quickly you can capture savings that preserve margins and fund your competitive future.
Whether you’re operating quick-service restaurants, fast-casual concepts, or full-service establishments, QBSS delivers the expertise, technology, and proven processes that allow you to focus on what matters most: serving great food and creating exceptional guest experiences.
Let us help you turn G&A from a cost burden into a competitive advantage. Contact QBSS today to discover how much you could be saving.
How do I know if my G&A costs are too high?
Industry benchmarks provide a clear starting point. Top-performing restaurant operators spend 1-2% of revenue on finance and accounting functions, while struggling operators spend 3-6%. For IT, best-in-class operations run at 2-3% of revenue, including all technology systems, support, and security.To assess your position, calculate your total G&A spend across finance, accounting, IT support, and administrative overhead as a percentage of revenue. If you’re spending more than 5% on back-office functions for a multi-unit operation, or more than 8-10% for smaller operators, there’s likely significant opportunity for optimization. Even operators near benchmark levels can often reduce costs 15-25% through strategic outsourcing and automation.
What are the quick wins I can achieve in 30-60 days?
The fastest cost reductions come from eliminating redundant processes and consolidating technology. Start by auditing your software subscriptions—many operators discover they’re paying for multiple overlapping tools that perform similar functions. Consolidating to integrated platforms can cut software costs 20-30% immediately.On the finance side, automating invoice processing and accounts payable workflows can reduce manual data entry by 60-70%, freeing your team to focus on analysis rather than transactions. Similarly, implementing automated bank reconciliations and expense categorization can cut monthly close time in half while reducing errors.
For IT, moving to managed service providers for help desk support and system monitoring typically reduces incident resolution time by 40% while cutting costs 15-20%. These are all changes that can be implemented within weeks, not months.
Should I outsource finance and accounting, or keep it in-house?
The decision depends on your scale, complexity, and internal capabilities. Outsourcing makes the most sense when you’re spending above benchmark levels, struggling with high error rates or slow closes, experiencing frequent turnover in finance roles, or lacking specialized expertise for areas like franchise reporting or sales tax reporting.Outsourcing F&A functions typically reduces costs 20-40% or more while improving accuracy and reporting speed. For a $50 million restaurant group spending 4% of revenue on finance, that translates to $400,000-$800,000 in annual savings. The key is finding partners with restaurant industry expertise who understand the unique challenges of multi-unit operations, high transaction volumes, and complex cost allocations.
Many operators adopt a hybrid model: outsourcing transactional work like AP, AR, and payroll processing while keeping strategic finance leadership in-house. This approach captures most of the cost benefits while maintaining control over financial strategy and relationships with lenders and investors.
How do I reduce IT costs without compromising operations or security?
The restaurant technology stack has become increasingly complex, with separate systems for POS, online ordering, loyalty, inventory, labor management, and analytics. The trap many operators fall into is treating each system as a separate silo, leading to redundant support costs and integration headaches.The solution involves three strategies. First, consolidate to platforms that integrate multiple functions rather than managing point solutions. Second, leverage managed IT services to handle routine support, monitoring, and cybersecurity rather than maintaining full-time IT staff for every location. Third, implement (or leverage an MSP that already has) AI-enabled automation for routine IT tasks like system health monitoring, backup verification, and patch management.
These approaches typically reduce total cost of ownership (TCO) by 10-20% while actually improving system uptime and security posture. The bonus: you’re no longer competing for scarce IT talent in tight labor markets.
What’s the ROI timeline for G&A reduction initiatives?
This varies by approach, but most operators see measurable results quickly. Software consolidation and automation tools often show positive ROI within 3-6 months through reduced subscriptions and labor savings. Outsourcing transitions typically require 60-90 days for implementation, but operators begin seeing cost savings within the first full quarter.The larger strategic benefit emerges over 6-12 months as operators reinvest savings into revenue-generating activities like menu innovation, marketing, and customer experience improvements. In today’s margin-compressed environment, freeing up even 1-2% of revenue from G&A provides crucial flexibility for pricing strategy and competitive positioning.
How do I get started?
Begin with a comprehensive G&A audit that maps current spending by category, identifies inefficiencies, and benchmarks against industry standards. Document your current technology stack, finance processes, and support costs. Then prioritize opportunities based on potential savings, implementation speed, and operational risk.Most operators find that tackling F&A automation and software consolidation first builds momentum and demonstrates ROI, making it easier to gain buy-in for larger transformations like outsourcing or IT infrastructure changes.
In an industry facing unprecedented headwinds from tariffs, labor constraints, and consumer pullback, G&A represents the controllable lever restaurant operators can’t afford to ignore. The question isn’t whether to act—it’s how quickly you can capture savings that preserve margins and fund your competitive future.
Partner with QBSS for Restaurant G&A Excellence
At Quatrro Business Support Services (QBSS), we specialize in helping restaurant operators transform their back-office operations to achieve the cost savings and agility needed to thrive in today’s challenging environment. Our restaurant-focused services are designed specifically for the unique demands of multi-unit and multi-brand operations.Whether you’re operating quick-service restaurants, fast-casual concepts, or full-service establishments, QBSS delivers the expertise, technology, and proven processes that allow you to focus on what matters most: serving great food and creating exceptional guest experiences.
Let us help you turn G&A from a cost burden into a competitive advantage. Contact QBSS today to discover how much you could be saving.
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