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Nobody has time for that when there is a crowded dining room, to-go orders flying out the window and customers complaining about their favorite menu items going up in price. We’re going to park this one here until a little later in this article. Partner with Supply Chain Experts. Are you doing anything with that data?
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.
High coffee prices are becoming a lasting reality for the industry. While many assert that this signifies a long overdue change, as coffee has historically been an undervalued commodity, price volatility affects all levels of the supply chain in various ways. For coffee shops, in particular, margins are tighter than ever.
We saw customers stockpiling on groceries and supplies in homes instead of going out to eat, raising retail sales by 29 percent over the previous year (1). According to this McKinsey Report, these “changes in consumer behavior continue to ripple through the US food and agricultural supply chains” even today (1). Inventory Estimates.
The full package of compensation and support will be the price of admission and the key to attracting and retaining the next generation. The industry must prepare for the changes that will come if the expectation is employing the very best people who are a restaurants most important asset.
You can't scroll news sites without seeing more articles about inflation, but was does it mean for restaurants? Those who don’t are effectively lowering their prices. Understand if your prices are keeping pace with inflation and maintain a markup that matches the costs associated with paying suppliers and staff.
Knowing the true cost per serving means you’re not guessing where to set menu prices. When done correctly, dish costing helps you control food costs, reduce food waste, and price items in a way that supports your restaurant’s financial health without alienating guests. Every smart pricing move starts here.
Coffee prices have soared over the past few years, pushing roasters, independent cafés, and specialty coffee retailers into challenging territory. For roasters and coffee shop owners alike, raising prices is no longer a choice but a necessity. Why are coffee prices staying so high?
The chain has kept its menu prices lower than inflation, and it has invested in other limited-time specials, such as its popular Never-Ending Pasta Bowl, in an effort to appeal to price-conscious consumers. It plans to keep prices down while also adding more lower-priced items to the menu. “If Sign up here.
In this article, you will learn: The five most important restaurant costs to track and manage Easy strategies for controlling food costs and labor costs Tactics to save money without hurting your guest experience Lets start with the big picture and learn where your money is actually going. Scales ensure every dish is exactly the same.
Labor shortages and other factors are affecting the global supply chain in never-before-seen ways, and certain commodities are intermittently not available, or if they are, they’re expensive. More recent price increases have nearly doubled this number. According to a report from S&P Global Market Intelligence, U.S.
Customers are becoming more discerning about value and anxious about the price of a meal (from quick service to fine dining). Technology can save restaurants money, help them become more efficient, reduce dependence on a qualified labor pool, and trim some reliance on a challenged supply chain. This must be the answer right?
When you decided to open a restaurant, you probably didnt picture yourself glued to spreadsheets or tracking the price of eggs, but keeping an eye on the numbers is how you stay open year after year. This gives you a sense of how effective your menu pricing is. Without it, one bad month can wipe out three good ones.
Green coffee prices have remained high and volatile , and so has the cost of everything else, including packaging, transport, energy, and labour. You may also like our article on how to start a microroastery. Green coffee prices have more than doubled over the last year.
Over the past year or so, coffee prices have been steadily increasing. The first sign that prices would increase was a sudden frost which hit some of Brazil’s major coffee-producing regions in late July 2021. Since then, prices have consistently remained above the US $2 mark. Exploring prices and costs at origin.
But not enough attention is being given to the issues surrounding the supply chain and the lack of real solutions. Most of the articles we read point to the pandemic as the culprit as well as the centralization of processing ownership. The war has nearly taken this robust farming nation off the map.
Convenience (66%) drives the majority of foodservice sales at convenience stores, but promotions and discounts (11%), taste (7%) and price (6%) are also driving sales that might otherwise go to a fast-food restaurant. Most c-store diners opt to eat in the car, either while parked or while driving. Sign up here.
It just goes to show how important drink pricing and cost management are to maximizing profits. In this article: How to calculate your profit margin for your bar What is the average profit margin for bars? Factors such as over-pouring, theft, or inaccurate pricing can increase your pour cost and hurt your profits.
For any specialty coffee roaster, one of the key factors to running a successful business is a continuous supply of fresh green coffee. However, with many medium or larger-sized roasters often having anywhere up to a year’s supply of green coffee, how can they manage their inventories as effectively as possible? Enjoyed this?
There are many actors involved in the coffee supply chain. However, there are also a number of intermediaries in the coffee supply chain, including those who mill, transport, and export coffee in producing countries. Conversely, other supply chain actors, such as roasters, retain much more value.
Here’s the kicker: It cost each restaurant $900 to participate in the week (I guess to cover town wide promotion expenses) and every restaurant must agree to deep discount pricing for guests. There is no cache of money to turn to, and the prices we charge are not based on greed, but necessity. We would love that.
Over the past year or so, rising food prices and energy costs have been affecting many people around the world. In fact, in March 2023, the BBC reported that food prices had reached a 45-year high in the UK , with many other major coffee consuming countries also going through similar price increases.
In the coffee industry, larger roasters generally have a greater capacity to manage price risk, but small and medium-sized roasters also have tools at their disposal. To learn more about how coffee roasters can manage and minimise the impact of price risk, I spoke to some industry experts to learn more. What is price risk?
There’s a reactionary movement that I keep seeing in restaurants; a movement that assumes the answer to the restaurant bottom line is to take more and give less or give too much to justify raising prices. A menu should thus be designed and priced to make those items seem essential.
High and volatile green coffee prices , along with increasing operational costs, are creating a more competitive market. You may also like our article on how digital marketing has evolved in the coffee industry. But as coffee prices stay high, operators are grappling with unprecedented volatility and uncertainty.
The convenience-retailing giant on Wednesday announced a Craveables Value Menu, pitting it in head-to-head competition with fast-food chains also looking to win consumers over with low prices. The move comes as consumers continue to limit their visits to restaurants and rein in their basket sizes amid elevated prices. Sign up here.
Wishnow, a former Dunkin’ and Taco Bell franchisee, tapped menu consultants and brand builders The Culinary Edge to design a menu that falls somewhere between Salad and Go and Sweetgreen, price-wise. The way Greenlane prices its menu has evolved since the first unit opened in 2023.
On the flip side, poor operations can lead to inefficiencies that snowballlike staffing issues that slow down service, supply chain mishaps that throw off the menu, or rising costs that eat into profits. This means budgeting, tracking expenses like food and labor, and adjusting pricing to balance profitability with customer appeal.
In this article: What strategies do you use to motivate and engage your restaurant employees? How do you handle unexpected challenges, such as equipment failure or supply shortages? How do you handle unexpected challenges, such as equipment failure or supply shortages? How do you handle disputes between customers and employees?
We can’t find any employees, people don’t want to work anymore, restaurants treat employees like crap, the pay sucks and the benefits don’t exist, prices are too high, supplies are impossible to find, and profit is so small that it isn’t worth the sweat and tears. Are you willing to accept smaller menus because of this?
Scoring dictates the prices producers receive, reaffirming the widely held belief that the value of coffee is more than just a numerical rating. You may also like our article on whether cup scores mean anything to consumers. Two Q graders may award different scores for the same coffee, for example.
The dish machine was likely an under counter unit and there was no need for a walk-in cooler since supplies were purchased every day; a reach-in or two would suffice. More than 800 articles and short stories on kitchens & restaurants. The kitchen was not filled with the most sophisticated equipment and certainly not computerized.
COVID-19, supply chain issues and rising food prices have placed the future of major broadliners at risk. Heck, it might even feel good to know you’re a small cog in the food supply machine. To order supplies from Cheetah, you don’t need to get through a long phone call. Reading Time: 4 minutes.
The greatest threat is not the labor shortage or supply chain issues, it’s not the pandemic or the price of real estate – yes, all those concerns are troubling and must be dealt with, but they are not what will bring the restaurant industry to its knees. Well then – what will? Try apathy on for size. Is it ignorance or apathy?
Your customers will rave, and you can raise your prices to cover the difference. I remember reading an article about a studio drummer by the name of Bernard Purdy who has played on more records than you can count. Sure, it will cost considerably more than what you are buying off the back of a “one stop” vendor truck, but it’s worth it.
This has changed the ratio of restaurant to retail at these centers and, in many instances, resulted in less overall potential customers for the restaurants, while increasing the supply of available restaurant choices. Even in pre-COVID 2020, at least five restaurant chains filed for bankruptcy protection.
In this article: How do you handle inventory management to keep the bar always adequately stocked? Was there a time when you had to adapt to last-minute changes, such as staff illness or unexpected supply shortages? Another factor to consider is pricing. Supply shortages require a different approach. what did you do?
She previously served as editor in chief of Winsight Grocery Business View All Articles by This Author Want breaking news at your fingertips? News Heather Lalley is the managing editor of Restaurant Business, Foodservice Director and CSP Daily news. Get today’s need-to-know restaurant industry intelligence.
In 2024, restaurants across the country saw an average five percent increase in transactions and an average eight percent increase in profits with only four percent caused by price hikes. Inflation, supply chain issues, and increased wages due to staffing shortages have driven up operational costs.
A higher-priced system that saves time and reduces errors might be more valuable than a cheaper, less effective alternative. It is the central nervous system of your restaurants operations, and most of the tools we cover in this article will need to integrate with your POS (point-of-sale) system. Consider your budget.
For the most part, both the price of arabica and robusta rely on futures contracts. These are legal agreements to buy or sell a particular commodity at a predetermined price on a set date. Changes in the foreign exchange market (also known as forex, FX, or currencies market) can affect many people across the coffee supply chain.
Green coffee prices remain high, while labour, logistics, packaging, and operational costs have all increased significantly. You may also like our article on why roasters and coffee shops need to strategise menu pricing. It’s a challenging time for roasters in today’s coffee market.
View All Articles by This Author Want breaking news at your fingertips? It is in California The Bottom Line: Data from Technomic’s Price Pulse shows that the average price for a medium Big Mac meal in California is about the same as the price for a Big Smasher on Chili’s 3-for-Me menu.
While the industry has been clouded by a variety of pressures that defined 2023 (such as inflation and price sensitivity), Restaurant Dive predicts that such challenges may push restaurants to embrace new solutions this year. The value triangle refers to three primary points in business: speed, quality, and price.
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