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Menu pricing isnt just about covering costsits about finding that sweet spot where profitability, customer perception, and operational reality meet. Set prices too low, and youre leaving money on the table. Most operators aim for food costs to be around 28-35% of the menu price, though this can change from restaurant to restaurant.
While working hard to bring customers back into the restaurant is very important for success, it has become more important to figure out the third-party equation in terms of pricing, commissions and fees, and value – which is ultimately the difference between success and failure. This trend has held on in the last five years.
A recent eBook by Softarex Technologies highlights all the main aspects of AI usage in restaurant operations, from customer service to back-of-house management. Optimizing Back-of-House OperationsBehind the scenes, AI is making significant strides in improving restaurant efficiency.
The unfortunate answer is price increases in general for both food and drink and narrower margins than already experienced by restauranteurs. Most of these increases in costs will be passed on to the consumer by higher menu prices. The impact of tariffs are top of mind for many restaurant operators and a cause for anxiety.
Tipping expectations have skyrocketed, and consumers are pushing back. Standardized Tip-Sharing: A Team Win Tip pooling helps level the playing field, ensuring that both front- and back-of-house staff benefit. According to a recent Bankrate survey , nearly one in three Americans think tipping has gone too far. Timing is key.
– Salad House CEO Joey Cioffi In 2025, restaurant chains will increase their usage of connected equipment to be more responsive, resilient, and ready to meet evolving customer expectations in a data-first, efficiency-focused world. At the same time, technology is poised to play an even bigger role in the coming year.
In 2018, I opened a self-serve tap house and sports bar called Auggie’s Draft Room. It’s probably not what you think, and it might even be easier than what you’re doing now. Every story deserves an unforgettable ending. Of all the concepts I’ve brought to life, this one stands out as my most successful.
From salted egg yolks and chili crunch fusions to mushroom-infused teas and freeze-dried fruit powder garnishes, Kimpton’s in-house experts share the standout ingredients, menu items and techniques that will come to the table in 2025.
This is where a buying group brings that advantage, helping source at the best price, quality, and then creating sourcing redundancy when mother nature gets in the way of supply with fresh agricultural products. Having many team members mean there are many salaries being paid and those salaries are accounted for in the service price.
With the rising costs of goods, consumers growing more conscious of spending habits, and private equity-backed brands popping up in communities large and small, mom-and-pops are in danger of adding to the failure statistics. Today, independent restaurants can and should tap into those same tools–without the massive corporate budget.
Front-of-House AI Applications One of the best things about AI is that while it helps your staff, its also giving your customers a better experience. More than you think. While the tech behind it might sound complex, the actual applications of AI in restaurants are surprisingly down-to-earthand, in many cases, incredibly practical.
Many restaurant operators juggle multiple locations, and adding managers adds another link in the chain of command to manage. Keeping your staff busy and happy is guaranteed to provide the feeling of fulfillment many operators in the foodservice industry don’t think about. A busy staff means productive staff, which is good for business.
In the back of the house, rampant inflation and ongoing supply chain disruptions are cutting into margins. Simultaneously, staffing is an urgent and ongoing front-of-house concern. It is even more so for independent restaurants, which usually have one manager for all front- and back-of-house duties.
Understanding your target market is the foundation of making smart decisions for your menu, pricing, and overall guest experience. Meanwhile, a fine-dining steakhouse targeting business professionals will prioritize a refined menu, premium pricing, and marketing efforts that focus on corporate events and high-end experiences.
Whether its takeout, delivery, or even in-house orders via QR codes, customers want a seamless and convenient way to order online. Running your own online ordering system gives you complete control over pricing, promotions, and customer data, helping you maximize profits while still offering convenience. billion in revenue.
Sinzer also considers what ensures diners feel like the price tag equates to a full experience. “We If we can imprint something, and that imprint is something that showcases the value we’re trying to give you, it’s a good thing, hypothetically, for us as a business to keep you coming back to the restaurant.”
Every day, youre juggling staff, food quality, inventory, customer service, purchasing, and moreall while trying to cultivate a dining experience that wows your customers enough to keep them coming back. Its tough, and cant be done passively. What is Restaurant Operations Management? Great restaurant operations dont happen by accident.
This constant back-and-forth leads to confusion, missed orders, and costly delays. Are delivery prices aligned with in-house costs? Are delivery prices aligned with in-house costs? Managing delivery orders shouldnt feel like running an obstacle course, but for many restaurant operators, thats exactly what it is.
When properly deployed, they can transform the employee experience by improving daily operations, syncing front-of-house and back-of-house communication and execution, and delivering a memorable dining experience that won’t send staff to the walk-in cooler for a good cry. Hospitality is greater than the sum of its parts.
This digitization of the edge will not only enhance the experience, but also create a natural method of collecting data about your guest – who they are, their preferences, how often they visit, how they pay and how you can bring them back to your restaurant more often. And this will take some time.
At the beginning of the pandemic, Paul Dioguardi, owner of Colorado-based Hickory House Ribs, realized there was only so much he could do with the amount of available restaurant tables so he decided to focus on growing the catering side of the business. We advertised in local papers, supporting youth sports and wrapping our vehicles.
A chief reason is due to caution or uncertainty exhibited by conscious consumers, with 48 percent saying they are taking the ‘wait and see’ approach and holding back on spending in 2024. Moving to Multichannel Dining Experiences Dining out is… back? So, what’s the solution? Food availability is often in flux.
The tool from the East Coast vegan chain — a digital take on a split-flap mechanical display that appears on its website and in the chain’s ordering app — estimates the amounts of water, land, CO2, and oil saved by eating vegan burgers. These numbers are largely hypothetical. Congratulations. The environmental mission can come later.
– Sophia Goldberg, Founder and CEO, Ansa The big lesson I learned is that I've had to continue to adapt my pricing, because people are still watching their spending. That's why we instituted lower-priced lunch specials and made other adjustments. During the shutdown I made more than 10,000 meals to give away.
You may have the eye-catching technology guests will notice first, but lack the framework that provides structure and complements your front-of-house initiatives. Many operators say they are looking to bolster their back-of-house capabilities in the coming year. However, costs are not returning to pre pandemic levels.
To have a successful restaurant, the owner or manager must be skilled at managing both front-of-house and back-of-house functions. To help increase these profit margins, restaurant owners sometimes focus more on changes they can make to front-of-house, such as increasing their prices or boosting liquor sales.
Since the pandemic, restaurants have endured a plethora of issues ranging from fluctuating dining restrictions to supply chain issues to rising food prices. To take some of the pressure off of an already small staff, restaurants have begun turning to technology solutions with touchpoints in the front and back of house operations.
Leveraging its incredible marketing and branding efforts without having to fight with franchisees that did not invest in stores and back-of house upgrades allows new and very experienced leadership to grow organically. What should restaurant brands take away from this mega deal and the Red Lobster bankruptcy filing?
A higher-priced system that saves time and reduces errors might be more valuable than a cheaper, less effective alternative. Most of the restaurant technology tools operators use every day were first introduced years ago, but it wasnt until the 2020 Tech Boom, brought on by COVID-19, that widespread adoption became essential.
If your cooks are mostly fulfilling off-site orders, you can do away with niceties like a slick front of house, visual merchandising, and a location with hungry walk-ins. Kitchen workers usually cede the better qualities of a space to customers: Back of house isn’t known for its natural light, ergonomics, or general comfort.
Rifrullo’s rustic-modern décor, mismatched dishware, and chalkboard sign welcoming guests to “be yourself, make friends, find harmony, and relax,” are as inviting as its prices, which top out at $16 for the salmon burger. Community, environment. It’s part of my DNA. produces the equivalent annual emissions of 42 coal-fired power plants.
With guests searching for value, how can local restaurants compete and thrive in such a competitive market and build trust withconsumers who are more cautious about price and safety than ever? "Value "People tend to go to fast-food restaurants for the speed and lower price point.
Certainly one thing on everyone’s mind today is price. Before we begin, we need to realize that the guacamole product served to customers is not solely factored on the price of the ingredients, but you’ll find the sneaky costs in labor, waste, food safety, and shipping. It is when these costs sneak in that margins go down.
Among the reasons restaurants fail (poor location, inadequate marketing, lack of staff and inventory control, uninspired menu, unreasonable pricing), customer theft is rarely on the radar. If these folks were going to a friend’s house they wouldn’t think of taking a plate, a mug or a picture off the wall. Roosevelt.
In between major changes it may help to implement some front-of-house upgrades using minimal capital and labor. In between major changes it may help to implement some front-of-house upgrades using minimal capital and labor. Your back-of-house equipment may well be long overdue for upgrades. Knowing the Right Time.
While some brands have already begun passing costs on to consumers without too much pushback (Chipotle, McDonald’s), brands will need to closely monitor customer response, as value-oriented customers are likely to begin to be more price sensitive as they also feel pressure from inflation. Improve Back-Office Processes.
Here, using data from Intouch Insight ’s 2022 Restaurant Trends Report and ongoing consumer surveys, we’ll explore the importance of offering a mobile ordering option and why you should keep these interactions as direct as possible, as well as the key drivers that keep consumers coming back. Set the Bar. Stay Connected.
As restaurants work to re-tool in preparation for the return of in-house guests, there’s one question that’s now on the minds of operators everywhere: how can their existing point-of-sale (POS) system and related technologies help to provide a safe environment with secure payments?
Brooklyn Dumpling House just opened and they're already franchising the idea. Tight menus, for set prices, at times offering previously unapproachable product at approachable prices. We also foresee a lot of companies will redesign locations even further to maximize efficiency. Clinton Anderson, CEO, Fourth Enterprises.
This capability can prove invaluable for refining pricing strategies, optimising ingredient and waste management, and planning forthcoming shifts, among other benefits. This trend reflects the growing popularity of drive-thru and fast-casual dining, coupled with the demand for digital technologies such as QSR digital signage and QR codes.
Build a Rewards Program to Encourage Repeat Visits Getting first-time guests through the door is the hard partbringing them back is much easier. Prioritize a clean design, fast load times, and a seamless mobile experience since most customers will be searching from their phones. Here are two ways to make a big impact on your local SEO.
Owners remain grounded in traditional ways of doing business – you have front-of-house staff taking care of the customer from service to payment, and you have back-of-house staff taking care of the food and management. Despite the importance of digital transformation, many restaurant owners are reluctant to adapt.
Consumers look for a sparkling clean front of house. They usually can’t see into the kitchen, so if the front of house is a mess they will probably assume the worst about your kitchen. You get home from a long day at work, don't feel like cooking and want to treat yourself to some great food. A Dirty Truth About Experience.
Cost remains another major barrier, as the pricing of robotic solutions often remains unrealistic, and the unit economics may not be sustainable, making it difficult for operators to justify the investment. Can AI and robotics provide solutions to some of the toughest challenges faced by QSRs? It also self-cleans, helping ensure food safety.
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