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The crime in our industry is that many operators (most operators) do not know how much power they have over their vendors. These chefs might know how to source the finest ingredients, but no one’s taught them how to negotiate the price of those ingredients or keep suppliers from quietly eating away at their profits.
Prices have surged to unprecedented levels, driven by a combination of disease outbreaks, increased production costs, and regulatory changes. Understanding the factors behind rising egg prices and implementing strategic solutions is critical for navigating this volatile landscape.
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. Fast-casual spots usually dont have that luxury, so pricing needs to be tighter and more dialled in.
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. Enhancing Customer Service with AI One of the most visible applications of AI in restaurants is in customer-facing operations.
Amid these potential disruptions, operators need a fresh approach to managing food costs. But it goes beyond figuring out how to source the freshest ingredients at the best price. Extreme Weather: By 2035, experts predict that higher temperatures alone will push up worldwide food prices by between 0.9 percent annually.
By combining proactive planning, strategic menu adjustments, operational efficiency, and strong vendor relationships, businesses can effectively manage these challenges while prioritizing customer satisfaction and food safety. What are the best practices for dealing with food costs for recipes when necessary items are fluctuating in price?
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.
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. Start by looking at internal and operational processes before rolling AI into customer-facing interactions.
"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 Modern Restaurant Management (MRM) magazine asked Singh to elaborate on his views on where the pricing model is headed in the QSR landscape.
Due to many factors including inflation and supply chain challenges, restaurant owners and operators have been faced with tough choice about raising menu prices. Ben Johnston is the Chief Operating Officer of Kapitus. Ben Johnston is the Chief Operating Officer of Kapitus.
Omnichannel communications and value-oriented customer expectations are two elements challenging restaurant owners and operators, according to a survey from Klaviyo. Brand websites and web browsing are 533 percent more popular than online marketplaces for restaurant discovery.
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.
The data also supports what RMS has been advising: pricing must be strategic. Insights from transactional POS data specific to locations and customer segments can help operators assess where item sensitivities are low or high, indicating which items might have further pricing opportunities and which don’t.
In this guide, youre going to learn: The key components of effective restaurant operations management Common challenges restaurant owners face (and how to solve them) Best practices to run a more efficient and profitable restaurant Lets explore what it takes to manage restaurant operations like a pro.
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. Tables and chairs take a backseat to efficient space.
For restaurants, especially those operating on thin margins, these fees can influence pricing strategies, profitability, and even operational decisions. This includes higher prices and reduced cash flow. Interchange fees can significantly affect a restaurant's bottom line in various ways.
As the restaurant industry moves into 2025, design is taking center stage as a key driver of guest experience, operational efficiency and brand storytelling. Let’s explore how these trends can help restaurant operators thrive in the year ahead. Expect to see bars that blur the lines between form and function.
Additionally, menu prices at casual dining establishments rose by an average of 9 percent year over year from 2021. This inflation at the customer–facing end of the restaurant business has largely been fuelled by rapidly increasing operating costs – by as much as 11.7 percent compared to the same period in 2021.
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.
Striking a balance between value and price. Is it possible to strike a balance between value and price to satisfy both parties? To answer that question, Revenue Management Solutions (RMS) examined two factors: the impact of price increases on QSR sales performance and consumers’ perception of value. Is it possible?
Restaurant owners looking to purchase an existing license can face prices up to $1 million depending on demand. In California, annual fees for a liquor license can also reach up to $1M, depending on factors like operating hours, customer policies, and whether the establishment offers on-site brewing.
Modern Restaurant Management (MRM) magazine asked restaurant industry experts for their views on what trends and challenges owners and operators can expect to see in 2025. After a challenging 2024, it’s promising to see restaurant operators looking ahead to 2025 with optimism.
.” This was both a technology and operational fail due to lack of proper testing/QA and employee training. Own Your Changes In March 2023, restaurants’ food prices were 8.8 When adding in the rising cost to attract and retain labor, it’s understandable that restaurants might raise prices to stay afloat.
Every restaurant faces operational challengeseven with a great menu and a talented team, bottlenecks can slow service, frustrate customers, and cut into profits. Instead of focusing on growth, restaurant operators spend their time fixing problems that shouldnt exist in the first place. But it doesnt have to be this way.
Looking for someone to oversee day-to-day operations is a critical business decision that needs careful consideration. For example, they may hold regular team meetings to go over new policies or operational updates. A manager who encourages empathy and teamwork between the two sides guarantees smoother operations.
Of course, running a restaurant is difficult, wholesale prices of ingredients have risen dramatically since the pandemic, labor costs are out of control, and landlords have no mercy when it comes to establishing lease arrangements. How, in this case with restaurants, do these operators find a way to financial success?
. "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
At this time of year, restaurant operators often search for ways to be more efficient, reduce costs and be more profitable. What are common misconceptions restaurant operators have regarding the impact of cooking oil on sustainability? What is the connection between restaurant cooking oil and sustainability?
In 2024, restaurant traffic slowed while price sensitivity grew. Moreover, three out of four respondents believe restaurant prices are higher and high prices are the primary reason for cutting back on restaurant spending. Sustained loyalty is the goal in this highly competitive, price-driven market. Continued trepidation.
At the same time, a rise in fast-food prices driven by inflation is reshaping consumer behavior, with many customers now treating fast food as a splurge rather than a convenience. Value will be defined by experience, not just price Rising inflation has changed how customers perceive value; they want more than just a cheap meal.
Whether youre an independent operator or part of a small chain, visibility is everything. Now, lets start with the first step every restaurant operator should take when launching a marketing campaignknowing their market inside and out. What price points are they comfortable with? Implement a rewards program.
Despite 93 percent of QSR operators indicating they raised prices in 2024, nearly two-thirds (64 percent) reported increased traffic across all dayparts, according to TransUnion’s QSR Industry Report: Bridging the Affordability and Profitability Gap.
Technomic’s revised predictions for 2024 revealed a challenging road ahead for the restaurant industry, which has been plagued by rising prices and shifting consumer behavior since the onset of the pandemic. percent rise in prices means that sales growth may barely keep up with inflation. percent sales increase by 1.5
Every cook, at least every serious cook, seems to want to work in one of those exceptional fine dining or cutting-edge experimental operations that are depicted in shows like Chefs Table or The Bear. These opportunities are far more limited in that single unit operation even though their chef may be exceptional and the menu noteworthy.
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.
Independent restaurants are at a pivotal moment, as the industry confronts multiple challenges including inflation, cost volatility, and extreme weather and adapts to an increasingly complex operating environment, according to the findings of the The James Beard Foundation® (JBF) 2025 Independent Restaurant Industry Report.
Long after the restaurant industry felt the most significant impacts of the pandemic, echoes still reverberate in the form of workforce realities and operational challenges. ” Perhaps unsurprisingly then, many restaurant operators cited a lack of qualified and committed applicants as a significant obstacle.
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! There are many areas where we have seen food service operators benefit!
However, 30 percent of high-income consumers are dining at TSRs more frequently than before, signaling room for premium offerings at the right price. Value Isn’t Just About Price—It’s About Experience Price sensitivity may be at an all-time high, but focusing solely on discounts risks missing the bigger picture.
While most Dominic’s operators, including me, were focused on the day-to-day challenges of running and building successful restaurants, Vincent made millions of dollars operating just one location. He knew he was a great operator, but he also knew the importance of having an exit strategy.
It is consequentially more difficult for restaurant owners and operators to obtain comprehensive coverage at a fair price – let alone find policies with the specific coverages they need. Understanding Restaurant Safety Restaurants are fast-paced operations and any safety vulnerability can quickly derail business.
We can expect to see a prolonged period of higher egg prices through the Easter and well into 2025, according to a repor t from CoBank. Commercial operators who have been impacted have moved swiftly to repopulate hens. The report found demand for eggs has skyrocketed , with per capita consumption growing 20 percent from 2016-2019. .”
Tastes and preferences constantly change as trends come and go, keeping the restaurant industry on its toes. But two non-negotiables have remained strong for diners: convenience and loyalty. With digital and frictionless experiences at the forefront, diners are seeking their favorite restaurants in new, more affordable ways.
Many restaurant operators have misconceptions about average order volume (AOV) and how it works, making statements like: I need more customers to make more money. Heres how it works: Instead of pricing items individually, menus show a combined price that offers a slight discount compared to ordering each item separately.
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