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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. Too high, and youll drive customers away.
Omnichannel communications and value-oriented customer expectations are two elements challenging restaurant owners and operators, according to a survey from Klaviyo. ” Multiple elements impact whether a potential customer actually follows through with a visit and if satisfied guests will return. ”
These changes have become permanent shifts in how they target customers, market themselves, and design their offerings." Customer habits have also shifted after the pandemic. The focus now is finding the minimum necessary seating capacity while maximizing kitchen efficiency and service throughput.
In 2022, with the introduction of ChatGPT, we saw restaurants – and just about everyother industry – look for ways to incorporate artificial intelligence within their customer operations. In 2025, I believe we’ll see the smart restaurant brands get very focused on how they leverage AI to improve the customer experience.
In 2024, restaurant traffic slowed while price sensitivity grew. While October showed signs of hope (YOY quick-service restaurant (QSR) traffic was positive for the first time in two years), we expect consumers will be cautious in 2025. Recurring customers. Some customer segments will continue to dine out. What is value?
"Restaurants thinking about implementing surge pricing need to balance the revenue upside with the potential brand backlash," says Savneet Singh, CEO of PAR Technology. "While ’" Is it possible for restaurants to have the best of both worlds and maximize revenue and still capture customer loyalty? Yes, and yes!
Eighty-one percent of diners said they would either stop going to a restaurant altogether or alter their dining hours to avoid prices surging during peak hours and 64 percent said they have a negative reaction to restaurants using surge and dynamic pricing, according to a HungerRush’s National Restaurant Price Surging Survey.
Just like a well-crafted mission statement will help guide your business decisions, identifying and understanding your target customers and competitors through restaurant market research will give your business a competitive edge. Do you want to find out which food items your customers love the most? With the 4.5% With the 4.5%
Globally, restaurants saw a notable shift in customer expectations and behavior during this time. As a result, restaurants had to quickly adapt by offering takeout and delivery options to cater to their customers' changing needs. In addition, many restaurants are now using digital menus in-house.
Dynamic pricing would add friction to the guest experience, according to Capterra’s 2023 Dynamic Pricing in Restaurants. Sixty-five percent of consumers say dynamic pricing would make the decision of where and when to eat more difficult; 63 percent say it would make it harder to budget their restaurant spending.
obtaining a full-service liquor license can vary significantly in cost, but Florida's process is especially challenging due to a county-based quota system that limits the number of licenses available. Restaurant owners looking to purchase an existing license can face prices up to $1 million depending on demand.
Widespread Adoption of Technology Solutions in Food Service In 2025, the food service industry will increasingly leverage technology for waste tracking and diversion. – Frenchie Audette, VP of Food Service at Divert In 2024, the restaurant industry continued to adjust to changes sparked by 2020.
In the modern dining landscape, where convenience and customer experience are paramount, restaurants increasingly rely on electronic payment systems to facilitate transactions. For restaurants, especially those operating on thin margins, these fees can influence pricing strategies, profitability, and even operational decisions.
RMS just released our latest findings around consumer sentiment for Q1 , which revealed, among other things, that price is starting to matter—and not by an insignificant amount. When asked why they were getting less value from a restaurant visit, 82 percent reported higher prices. The sentiment has changed rapidly.
One of the more popular solutions to helping a business thrive is dual pricing credit card processing. What is Dual Pricing? Dual pricing is a payment model that allows businesses to implement two different prices for credit card transactions. A perfect example of dual pricing is a gas station.
Due to many factors including inflation and supply chain challenges, restaurant owners and operators have been faced with tough choice about raising menu prices. As food prices rise, restaurants should try to stay within their target ratio for food cost to gross food revenue in order to maintain target profits.
In October, the USDA reported year-to-date averages, noting that food-at-home (grocery store) prices have increased 2.5 percent and food-away-from-home (restaurant) prices have increased 3.6 percent, and food-away-from-home prices are expected to increase between 3 and 4 percent. If current projections from the U.S.
A recent eBook by Softarex Technologies highlights all the main aspects of AI usage in restaurant operations, from customerservice to back-of-house management. Enhancing CustomerService with AI One of the most visible applications of AI in restaurants is in customer-facing operations.
This “tipflation” phenomenon is leading to lower gratuity rates, even at full-service restaurants. Gen Z, in particular, is rejecting tipping culture, seeing it as a forced surcharge rather than a reward for great service. They have to balance keeping customers happy while making sure their staff gets paid fairly.
Some brands’ apps even track mobile-order customers’ location to help ensure their food is fresh, whether it’s a burger or a salad. Through geofencing, the apps can tell when a customer is close, alerting restaurant teams to have the order ready in time – neither too early nor too late. The top reasons?
Almost half (45 percent) say they visit quick-service restaurants (QSRs) less often than before, and 51 percent have cut back on table-service restaurants (TSRs). However, 30 percent of high-income consumers are dining at TSRs more frequently than before, signaling room for premium offerings at the right price.
To learn more about how cooking oil management can help with this goal, Modern Restaurant Management (MRM) magazine reached out to John Michals, COO of Filta Environmental Kitchen Services. What Can Be Done : Professional services can provide statistics and case studies illustrating the cumulative impact of cooking oil waste.
From my experience, it is difficult to experience a dinner for two in a moderate full-service, independent restaurant for less than $120 without gratuity. Look at the cost of raw materials required to produce those items and ask a simple question: “Can we afford to sell these items and will people pay the price we need to charge?”
. "Value is a broader tent than price, but price is an important value platform when consumers are faced with high inflation or a personal economic situation such as a job loss," Tim Fires, president of global foodservice at Circana, told Modern Restaurant Management (MRM) magazine. "We
More than eight in ten restaurant operators expect 2025 sales to meet or exceed 2024 levels, but rising competition will require differentiation through experience, service, and innovation, according to The National Restaurant Association’s 2025 State of the Restaurant Industry report.
Understanding your target market is the foundation of making smart decisions for your menu, pricing, and overall guest experience. Key customer factors that influence dining preferences, from demographics to behavior. A restaurant target market is the specific group of customers your restaurant is designed to attract.
Scalable solutions like self-service kiosks and predictive analytics are transforming the way small businesses operate. Technology doesn’t just level the playing field; it allows mom-and-pop shops to improve efficiency, reduce wait times, and enhance the customer experience in ways that were once out of reach. The result?
One of those costs is with partnering services, with many food service operators relying on purchasing groups to help them make category-specific strategic purchases. There are many areas where we have seen food service operators benefit! This makes business tight causing a hard look at any extra costs.
These metrics give you a clear picture of your delivery performancefrom order volume and customer retention to delivery speed and profitability. This might seem like a small detail, but it plays a big role in the overall delivery experience and significantly impacts customer experience. What Impacts Order Volume?
Its a recipe for chaos, leading to mistakes, slower service, and shrinking profit margins. What should be a reassuring sightscreens full of customer ordersis actually a logistical nightmare. A single mistakelike forgetting to accept an order on one app while preparing anothercan result in a frustrated customer and a lost sale.
This ideally reinforces the connection in the customer’s brain between their everyday choices and the resulting impacts on the environment: “You’ve saved so many gallons of water, you’ve saved so many square meters of land and emissions and energy,” as Goldman says. Congratulations. without interruptions. So he took action.
As a restaurant manager or operator, you are the driving force in productivity – leading your staff and keeping customers happy. There will always be a customer on the receiving end of that waste of time. On the other end of that spectrum, 91% of customers who are unhappy with your service will not do business with you again.
"These tariffs could deeply affect the food service and hospitality industries on both sides of the border," Alex Thalassinos, President of Silverware POS, one of the first tech providers dedicated to Canada’s hospitality industry, told Modern Restaurant Management (MRM) magazine. AI is also boosting staff productivity.
Beata Zawrzel/NurPhoto via Getty Images New CEO Brian Niccol is hoping customers will fall back in love with the coffee chain. Starbucks had its moment in the sun, but at some point along the way, it lost touch with what its customers were actually looking for. Here’s why they fell out of love in the first place.
Another challenge many restauranteurs might not be considering is the impact third-party delivery services like Door Dash have on your brand. This includes building awareness in the community and establishing your customer base by creating buzz and memorable guest experiences. Nuance also extends to the service.
In this article, youll learn: How menu management software streamlines menu updates and eliminates manual errors Why outdated or inconsistent menus can impact customer satisfaction and revenue Key features to look for when choosing the right software for your restaurant Lets explore why every restaurant needs menu management software.
11, 2024, comparing it to the average Sunday in 2024 and found that: Wings win MVP with an 87 percent increase in sales The average price of wings ordered increased 18 percent. The average price of wings increased 18 percent, likely due to demand and larger orders. “Customers still associate the experience with your brand. .
Restaurants collect a ton of customer data. Think about it: What if you could automatically send a special offer to a customer who hasnt ordered in a while? When used strategically, customer data can help you personalize marketing, streamline operations, and create a better dining experience for your guests.
AI is no longer just a buzzword, its a reality that is reshaping how restaurants operate, interact with customers, and make decisions. From automating routine tasks to enhancing customer experiences, AI is revolutionizing the restaurant industry in ways that were unimaginable just a few years ago.
“We raised our prix-fixe lunch price by $1 and have increased catering prices minimally. The à la carte menu pricing has remained the same.” Showing empathy for their customer base has also proven beneficial. “We always try to sell our product at a fair price. Bhatia said.
Operators must weigh guest acceptance while making strategic decisions about integrating automation at many restaurant touch points, according to Software Advice’s 2024 Automated Customer Experience Survey. Prices for real estate, inventory, and labor are rising. What can restaurant operators learn from these results?
Rethinking Beverages The typical drink upsell—soft drinks and coffee or tea—has decreased over the past few years as customers increasingly eat restaurant food at home. During a time of increased price sensitivity, beverages create an opportunity to increase the total check. What’s on the Menu?
Most restaurant and food service workers did not have access to sick leave or any other safety net , and yet were deemed essential. food prices have risen by 23.6 food prices have risen by 23.6 Just look at the price of eggs, which is only expected to rise in the coming months. And sometimes, hints of a better future.
It just goes to show how important drink pricing and cost management are to maximizing profits. Start by tracking all the income your bar generates, including sales from drinks, food, and any additional services. Factors such as over-pouring, theft, or inaccurate pricing can increase your pour cost and hurt your profits.
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