How Is Inflation Affecting Restaurants?

You can't scroll news sites without seeing more articles about inflation, but was does it mean for restaurants? Modern Restaurant Management (MRM) magazine quizzed expert Kathryn Petralia, co-founder of Kabbage, an American Express Company, for her analysis on what restaurants owners need to understand about inflation. 

Just how does inflation affect restaurants? Shifting costs are always affecting the profitability of running a restaurant. The unusual part is when inflation impacts all parts of the business all at once, and at a faster rate, from labor costs to materials and ingredients. Business owners should routinely track increased costs and adapt. Those who don’t are effectively lowering their prices. 

What are best practices for restaurant owners and operators to manage costs right now?Understand if your prices are keeping pace with inflation and maintain a markup that matches the costs associated with paying suppliers and staff. Although the short-term…