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Faced with rising labor costs and increasingly price-sensitive customers, restaurant brands are exploring new ways to balance profitability with consumer expectations. One of the most debated strategies is dynamic pricing, which adjusts based on demand and other variables.
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. Recurring customers. Promotions and discounts attract customers, but they’re often short-lived.
Rising restaurant prices and increased cost-of-living expenses are significantly altering dining out habits in both the US and UK, according to a new survey from Attest. Among the key findings affecting restaurants: Price Sensitivity : 86 percent of consumers in both the US and UK feel restaurant prices are higher than last year.
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.
Steady Online Ordering Brings Food Waste, Donations to the Forefront of Priorities Ordering food online increases restaurant sales, but it also can potentially increase wasted food if proactive measures aren’t taken – for both the business and consumers at home.
Running a restaurant isn’t just about crafting the perfect plate or creating an unforgettable experience for your guests, it’s about making money. The reality is, these vendors make a healthy profit off every sale, and many are willing to negotiate if you know how to play the game. billion, reflecting a 4.7
He debunks common "lies" about social media, delivery apps, and technology budgets and offers practical tips for mastering the modern guest journey, from ranking on Google to turning a website into a sales machine. According to the IFDA , the top 500 chains keep earning a bigger share of total sales in the restaurant industry.
The restaurant owner shares a feeling or aim, then the designer builds on that with a greater theme and finally, in tandem with the artist’s craftsmanship, they bring to life a complete experience for guests. Custom art can be whimsical, intriguing, bold, or even disturbing. Custom art is also just cool.
A Dilemma of “Super Size” Proportions Amid rising food prices and shifting consumer preferences, the restaurant industry is facing a dilemma of “super size” proportions. chain sales grew just 3.1 percent menu-price inflation rate. At the same time, U.S. percent in 2024 — falling short of the 4.1
In response to rising food costs, 56 percent of respondents said they planned to increase menu prices, down from 61 percent earlier in the year, and 18 percent said they doubled down on inventory and waste tracking, up two percentage points.
“Through expansive experiences that inspire our guests paired with the ambiance of the space and the food on the plate, we’re setting new standards for the industry and creating truly spectacular moments for all who enter our restaurants and bars.”
Beata Zawrzel/NurPhoto via Getty Images New CEO Brian Niccol is hoping customers will fall back in love with the coffee chain. The chain has seen declining sales , and foot traffic is down 10 percent over the last year. Unfortunately, leaning into this customizable creativity has, arguably, made the experience at Starbucks worse.
Restaurants less so How the owner of Krystal and Logan's Roadhouse makes it work Financing Olive Garden sales surge on delivery and free take-home meals Same-store sales rose 6.9% Photo: Shutterstock Delivery and a take-home meal deal drove a lot more customers to Olive Garden this spring.
Coffee roasters around the world are struggling to navigate the rising tide of costs without losing loyal customers. Prices for green coffee have surged, operational expenses continue to climb, and economic pressures show no sign of easing. At the same time, coffee consumers are growing more price-sensitive.
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.
These metrics give you a clear picture of your delivery performancefrom order volume and customer retention to delivery speed and profitability. These metrics give you a clear picture of your delivery performancefrom order volume and customer retention to delivery speed and profitability.
Customers expect to browse menus, place orders, and pay for their meals with just a few taps of their phones. For restaurant operators, this presents both an opportunity and a challenge: how to implement an online ordering system that maximizes revenue while maintaining control over their customer relationships. billion in revenue.
In recent months, other matcha-seekers visiting Japan have been having a similar experience. In the US, matcha sales have reportedly reached in excess of $10 billion over the past 25 years. They did roughly six months of sales in a little less than a month,” Mangan says. Now, the matcha industry is struggling to keep up.
One key area to focus on is drink sales, with cocktail sales accounting for about 23% of a bar's revenue. 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.
Tracking it correctly will: Reveal accurate profit margins Help set profitable menu prices Flag operational problems Support better budgeting Help you stay competitive Yet, despite its importance and the advantages of using it, many operators don’t calculate it regularly or aren’t confident they’re doing it correctly.
What was once a gradual process turned into a rapid transformation, permanently reshaping how restaurants operate and interact with customers. Customers have now fully embraced the benefits of using restaurant technology, and to keep up with guests evolving expectations, the tech industry is growing at an incredible rate.
It blends sales data, food cost, and menu psychology to help you stop guessing and start making decisions that grow your margins. These are candidates for portion adjustments or pricing tweaks. What Is Menu Engineering and Why Should You Care? Menu engineering is the process of using data and design to make your menu more profitable.
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. Are delivery prices aligned with in-house costs? Which apps are performing best?
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. A spike in food costs, a drop in sales volume, or one slow season can wipe out months of hard work. What Are Restaurant Profit Margins?
For a deeper dive into brand messaging, strategy, and authenticity, creating unified guest experiences, and the orchestration of physical and experiential touchpoints, Modern Restaurant Management (MRM) magazine reached out to The Plaid Penguin’s Founder and Sir Idea Man Joe Haubenhofer. A strong restaurant brand goes beyond a logo.
If your business isnt keeping up with the changes, you risk falling behind and not meeting modern customer expectations. For operators, restaurant apps mean higher sales, greater customer retention, and smoother day-to-day operations. Online ordering and delivery apps.
Restaurant KPIs are numbers that go beyond basic accounting to help you see how every part of your business is performingfrom your profit margins to your guest experience. Not all restaurant KPIs measure the same thingsome help you protect your bottom line, while others can improve your operations efficiency or improve guest experience.
When delivery app orders sync with your point of sale, youre not just saving timeyoure improving order accuracy, speeding up the process, and getting cleaner reporting. Both options help eliminate manual entry and streamline how delivery orders are processed, but the experience and the flexibility can be very different.
billion transactions and $67 billion in sales in 2024. 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. Companies saw a sales boost in 2024 as loyalty transactions increased by over 30 percent.
Knowing the true cost per serving means you’re not guessing where to set menu prices. Knowing the true cost per serving means you’re not guessing where to set menu prices. Every smart pricing move starts here. Accuracy matters, especially when food prices fluctuate. It’s just part of the job.
Youre delivering a great dining experience, yet foot traffic remains inconsistent, online engagement is low, and new customers arent coming in as often as youd like. The problem isnt your food or serviceits visibility and customer engagementand were going to help you fix that. Optimize your Google Business Profile.
Understanding what customers order, when they order, and how often is an untapped goldmine of information for restaurant operators. Using that data can help you answer questions like: Are we pricing our bestsellers too low or overpricing items customers arent buying? What do repeat orders say about our customer preferences?
By the time you finish this article, youll know how to approach restaurant marketing the right way and not waste time doing guesswork, crossing your fingers, and then hoping you see new customers walking through the door. Customers have more choices, higher expectations, and countless ways to discover (or overlook) your restaurant.
It is atop the list for restaurants looking to modernize, differentiate, and elevate experiences. So much data is generated at every point within a restaurant, whether fast casual or fine dining. The question now becomes – how to make sense of that data and use it to elevate the dining experience.
Hacienda La Esmeralda won all three main categories, a first for the competition, and achieved record-breaking scores of 97 and 98 points for its natural and washed Geshas, respectively. This set the precedent for future astonishing auction prices, which have since surpassed US $10,000/kg. The BoP auction will take place on 6 August.
By Kateryna Reshetilo, Contributor Are you a restaurant owner looking for ways to keep up with the fast-changing demands of your customers? Today, more than ever, restaurants are turning to custom-built apps to improve convenience, streamline operations, and foster customer loyalty. If so, you’re not alone. from 2023 to 2030.
Around the world, headlines are warning consumers that a sharp increase in coffee shop prices is a real possibility. However, this narrative oversimplifies the complex web of operational costs that shape retail prices in the coffee sector. You may also like our article on how much coffee shops should raise their prices.
Third-party delivery apps start out as a convenient way to reach new customers, but they always take a significant chunk of your profits. While these platforms do bring in orders, they also come with the price of high commission fees, loss of customer data, and a weaker connection between you and your guests.
Those priorities include increased marketing and sales efforts alongside new benefits and programs to attract and retain staff. The primary response was menu price increases, with nearly 61 percent of respondents adjusting prices to cope with the new reality.
Understanding your customers and operations starts with the right data. Most retail stores collect data on their customers and send follow-up emails on birthdays and holidays. These emails almost always include a promotion or discount, and the customer response is strong. Modern technology has a great number of benefits.
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.
Start by analyzing these Top 7 POS Sales Reports to know where your restaurant is headed. These reports help you understand sales trends, manage inventory, optimize staffing, and improve customer satisfaction. Sales Exceptions Reports : Spot voids, refunds, and discounts to minimize losses and detect irregularities.
High and volatile green coffee prices , along with increasing operational costs, are creating a more competitive market. Brands are forced to strike a balance between quality, value, and customer service. Current market challenges mean it’s never been harder to operate a coffee business – and this includes marketing and branding.
Editor’s note In the days leading up to the 2025 Best of Panama auction, many in the industry placed their bets on a new world record price for coffee. While it may seem impossible for a kilogram of coffee, even Gesha, to sell for such an unbelievable price, these predictions came true.
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