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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. Here are three key strategies: 1.
“This enduring customer loyalty drives the restaurant industry forward, creating clear opportunities for restaurants to enhance the dining experience through strategic limited time offers, efficient delivery and exceptional in-person service," said Samir Zabaneh, CEO of TouchBistro.
In 2022, with the introduction of ChatGPT, we saw restaurants – and just about everyother industry – look for ways to incorporate artificial intelligence within their customeroperations. Restaurants succeed or fail based on loyalty, which is a direct result of customer experience.
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.
02, 2025 Facebook Twitter LinkedIn Wholesale egg prices have fallen 67% since their March peak. Photo: Shutterstock Waffle House customers no longer have to pay extra for eggs. 02, 2025 Facebook Twitter LinkedIn Wholesale egg prices have fallen 67% since their March peak. By Joe Guszkowski on Jul. By Joe Guszkowski on Jul.
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.
The hospitality industry has always been about delivering great service—but today, that means more than just good food and friendly staff. Restaurant operators are dealing with shrinking margins, labor shortages, and higher guest expectations than ever before. This isn’t about replacing people with machines.
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. ”
How rising import taxes may reshape menus, pricing, and sourcing in the restaurant industry. The restaurant experience isnt just about great service and ambianceits deeply tied to ingredient sourcing and food costs. tariffs on the horizon, many restaurant operators are bracing for change. With new U.S.
More than half (54 percent) of independent restaurant owners report making half as much or less than this same time last year, according to a report from Alignable with 51 percent saying customer spending is “much lower” than 2024. Tariffs, attracting new customers, and inflation top the list of concerns.
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.
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.
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. Widespread Adoption of Technology Solutions in Food Service In 2025, the food service industry will increasingly leverage technology for waste tracking and diversion.
-based diners who recently ordered from a QSR, fast-food or fast-casual chai also found that value is about more than just price. Guests are significantly pulling back their discretionary spending, which is directly influencing when, how, and what they choose to order at quick-service and fast-casual restaurants. The good news?
This represents a larger increase than those increasing visits to fast-casual (14 percent) or full-service (11 percent) restaurants and is on par with those visiting QSRs more frequently (24 percent) ( RMS Q1 2025 Dining report ). That means restaurants are losing more than just the occasional diner; they're losing their core customers.
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.
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. percent menu-price inflation rate. Customers can become more critical of the quality of products and services when prices increase.
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?
At this time of year, restaurant operators often search for ways to be more efficient, reduce costs and be more profitable. 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.
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.
Globally, restaurants saw a notable shift in customer expectations and behavior during this time. For lengthy periods over the course of two years, businesses were forced to operate solely on a take-out and delivery basis, and it soon became evident that everybody would need to up their game.
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.
Every day, youre juggling staff, food quality, inventory, customerservice, purchasing, and moreall while trying to cultivate a dining experience that wows your customers enough to keep them coming back. What is Restaurant Operations Management? Great restaurant operations dont happen by accident.
This doesnt mean cutting corners and sacrificing the customer experience; its about knowing where your money is going, spotting leaks early, and fine-tuning whats already working. A good labor cost percentage to shoot for is between 20%-30% , depending on your service style and local wage laws. Are you overstaffed on slow days?
"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!
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.
After all, it’s not just the quality of your food that can keep customers coming back — 73% of diners base their satisfaction on the quality of service they receive. Looking for someone to oversee day-to-day operations is a critical business decision that needs careful consideration.
One of operators most difficult challenges is balancing restaurant operating costs without compromising the food, service, and customer experience that makes your restaurant unique. Meaning it doesnt matter how busy or slow you are, these restaurant operating costs dont change.
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. And the digitization of operations over the past few years means that the industry is getting better at capturing that data. Data, Data, Data.
Think of them as your restaurants vitals: they help you monitor the health of your business in real time, so you know where to adjust operations before problems become expensive. Lets dig deeper into the 11 Key Performance Indicators every restaurant operator should track and know. Too many people on the floor?
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.
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.
. "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
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.
With nearly every organization today adopting digital transformation strategies, many companies are focusing on providing more digital solutions to customers. This is true for businesses operating in office settings just as much as in restaurants, supermarkets, and other settings where businesses have daily contact with consumers.
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. How, in this case with restaurants, do these operators find a way to financial success? That’s 21 meals for two people over seven days. Do the math.
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.
Every restaurant faces operational challengeseven with a great menu and a talented team, bottlenecks can slow service, frustrate customers, and cut into profits. Staff scramble, customers grow impatient, and suddenly, a busy night turns into chaos. Overworked employees and impatient customers.
Inflation, supply chain disruptions, and an unforgiving labor market have created a perfect storm for restaurant owners and operators. As costs rise and pressures pile up, the time is now to perform a complete audit of the true costs of human resources operations. The mounting headwinds are unrelenting.
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.
A new report highlights the need to assess this spending, with operators spending 34 percent more on food than last year. Adjusting menu prices may have worked in the past, but it’s no longer enough to offset rising costs. Owners and operators need to focus on back-of-house spending to find ways to reduce expenses.
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.
Photo: Shutterstock Delivery and a take-home meal deal drove a lot more customers to Olive Garden this spring. The offer allowed customers to buy an in-store meal starting at $14.99 It plans to keep prices down while also adding more lower-priced items to the menu. “If By Joe Guszkowski on Jun.
Here, Huang explains how business has changed since going brick-and-mortar and how hes kept prices low over the past five years. Quick-service restaurants arent really sustainable at one. On profitability The delivery pop-up operation was the most profitable version of Pecking House. We literally just raised prices by $1.
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