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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 customer operations. In 2025, I believe we’ll see the smart restaurant brands get very focused on how they leverage AI to improve the customer experience.
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.
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?
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. ”
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.
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. Cocktail menus, wine lists, and even upscale coffee shops could all see price jumps or feature a tighter selection.
The hospitality industry has always been about delivering great service—but today, that means more than just good food and friendly staff. But now, AI is shifting from the back office to the front lines of service. Optimize pricing strategies based on real-time demand, reducing food waste. Smarter data use.
"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!
Just like a well-crafted mission statement will help guide your business decisions, identifying and understanding your target customers and competitors through restaurant market research will give your business a competitive edge. Do you want to find out which food items your customers love the most? With the 4.5% With the 4.5%
Globally, restaurants saw a notable shift in customer expectations and behavior during this time. As a result, restaurants had to quickly adapt by offering takeout and delivery options to cater to their customers' changing needs. In addition, many restaurants are now using digital menus in-house.
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.
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.
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.
Widespread Adoption of Technology Solutions in Food Service In 2025, the food service industry will increasingly leverage technology for waste tracking and diversion. – Frenchie Audette, VP of Food Service at Divert In 2024, the restaurant industry continued to adjust to changes sparked by 2020.
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.
-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?
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.
Due to many factors including inflation and supply chain challenges, restaurant owners and operators have been faced with tough choice about raising menu prices. As food prices rise, restaurants should try to stay within their target ratio for food cost to gross food revenue in order to maintain target profits.
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.
With nearly every organization today adopting digital transformation strategies, many companies are focusing on providing more digital solutions to customers. The primary focus of the websites is having what you need, at a good price. In many cases, they’ve basically taken people out of the equation almost entirely.
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.
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. Look at the cost of raw materials required to produce those items and ask a simple question: “Can we afford to sell these items and will people pay the price we need to charge?”
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. What Can Be Done : Professional services can provide statistics and case studies illustrating the cumulative impact of cooking oil waste.
Too often, what customers found was a clunky experience marked by poor scanning results, slow click-throughs and the need to download third-party apps just to engage with the expected content. Customer feedback. Restauranteurs can also utilize QR codes as a channel to link customers directly to their business calendar.
This “tipflation” phenomenon is leading to lower gratuity rates, even at full-service restaurants. Gen Z, in particular, is rejecting tipping culture, seeing it as a forced surcharge rather than a reward for great service. They have to balance keeping customers happy while making sure their staff gets paid fairly.
Some brands’ apps even track mobile-order customers’ location to help ensure their food is fresh, whether it’s a burger or a salad. Through geofencing, the apps can tell when a customer is close, alerting restaurant teams to have the order ready in time – neither too early nor too late. The top reasons?
. "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
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. Today its difficult to get people to spend at certain price points. On pricing It started off as $35 for a chicken meal with three sides.
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.
– Misty Chalk, vice president, Americas at BrightSign AI Continues to Revolutionize Restaurant Operations and Guest Services: The restaurant sector is poised for a seismic shift as AI integration takes center stage. It will enable hyper-personalized experiences that transform guest interactions through advanced customer insights.
Wine lists that resemble an encyclopedia of the wine making craft are just the price of admission. The price they pay is a lack of balance in their lives, relentless stress, and always concerns about when their star will lose its shine. Leave your customers speechless and your employees beaming with pride.
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.
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. Why are restaurant profit margins so thin?
This ideally reinforces the connection in the customer’s brain between their everyday choices and the resulting impacts on the environment: “You’ve saved so many gallons of water, you’ve saved so many square meters of land and emissions and energy,” as Goldman says. Congratulations. without interruptions. So he took action.
Adjusting menu prices may have worked in the past, but it’s no longer enough to offset rising costs. The True Price of Water A restaurant selling 50 bottles of water per day can create a big environmental and financial impact by moving away from bottled water services and switching to an on-site bottling dispenser.
Understanding your target market is the foundation of making smart decisions for your menu, pricing, and overall guest experience. Key customer factors that influence dining preferences, from demographics to behavior. A restaurant target market is the specific group of customers your restaurant is designed to attract.
Scalable solutions like self-service kiosks and predictive analytics are transforming the way small businesses operate. Technology doesn’t just level the playing field; it allows mom-and-pop shops to improve efficiency, reduce wait times, and enhance the customer experience in ways that were once out of reach. The result?
As a restaurant manager or operator, you are the driving force in productivity – leading your staff and keeping customers happy. There will always be a customer on the receiving end of that waste of time. On the other end of that spectrum, 91% of customers who are unhappy with your service will not do business with you again.
In the food service industry, branded apparel is a critical extension of your business's identity. The uniforms worn by staff, from kitchen to counter, represent your brand in every customer interaction, making apparel a strategic business decision rather than merely an operational requirement.
"These tariffs could deeply affect the food service and hospitality industries on both sides of the border," Alex Thalassinos, President of Silverware POS, one of the first tech providers dedicated to Canada’s hospitality industry, told Modern Restaurant Management (MRM) magazine. AI is also boosting staff productivity.
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. In recent years, the food service industry has undergone a rapid transformation of automation and increased technology usage.
Beata Zawrzel/NurPhoto via Getty Images New CEO Brian Niccol is hoping customers will fall back in love with the coffee chain. Starbucks had its moment in the sun, but at some point along the way, it lost touch with what its customers were actually looking for. Here’s why they fell out of love in the first place.
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