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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.
Striking a balance between value and price. Is it possible to strike a balance between value and price to satisfy both parties? To answer that question, Revenue Management Solutions (RMS) examined two factors: the impact of price increases on QSR sales performance and consumers’ perception of value. Is it possible?
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.
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.
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
So much data is generated at every point within a restaurant, whether fast casual or fine dining. The quicker businesses can feed that information back into operations, the better, whether for personalized dining, staffing optimization, or advertising and marketing.
But independently owned, more agile operations can out-maneuver big brands by leaning on their point of sale (POS) platforms to increase sales and expand their client bases. Consider tapping into the treasure trove of customer information your POS platform contains. Let’s say the price of beef goes up.
The more you understand your customers, the better you can fine-tune your marketing and pricing strategies. The more you understand your customers, the better you can fine-tune your marketing and pricing strategies. Customer data can help you improve operations and make more informed decisions about staffing and inventory.
Since 2014, online ordering has grown 300% faster than dine-in and now accounts for roughly 40% of restaurant sales. Running your own online ordering system gives you complete control over pricing, promotions, and customer data, helping you maximize profits while still offering convenience. billion in revenue.
On top of the everyday commitment to prepare great food, provide stellar service, and maintain an inviting environment, restaurant operators have, in recent years, been challenged to meet higher standards for protecting customer payment information – and now to preserve public health and safety.
Without KPIs, spotting inefficiencies in your workflow is nearly impossibleleaving you without the data needed to make informed decisions and grow your online sales. If youre one of the thousands of restaurants that added online food delivery in recent years, you might be wondering: is it actually helping my business grow?
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?
It blends sales data, food cost, and menu psychology to help you stop guessing and start making decisions that grow your margins. If youre using a modern POS system or inventory management software, you likely already have most of this information easily at your disposal. These are candidates for portion adjustments or pricing tweaks.
A single mistakelike forgetting to accept an order on one app while preparing anothercan result in a frustrated customer and a lost sale. And without a single place to track all delivery sales, restaurant operators struggle to see the full picture of their off-premise business. Are delivery prices aligned with in-house costs?
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.
According to September 2023 numbers from the National Restaurant Association , 49 percent of restaurants reported year-over-year increases in same-store sales. Adapt to Growing Price Fatigue Since the pandemic, controlling food costs has been a major challenge for restaurant operators. Full-service menu prices climbed 4.5
For BevAlc buyers, pricepoint as a function of quality, although always important, will become crucial over the coming months and years. Finding the right balance of what local guests want, at the maximum pricepoint and minimal cost could be the difference between surviving and closing the doors.
Different restaurant models achieve a break-even or profitability point at varying times. Increase Restaurant Sales The best way to increase a restaurant’s cash flow is to increase sales. Reviewing these numbers frequently can help to hold vendors accountable to the prices they are quoting.
Identify your biggest pain points. Are you aiming to speed up service, cut labor costs, or increase online sales? A higher-priced system that saves time and reduces errors might be more valuable than a cheaper, less effective alternative. Can it increase sales or customer retention? Are labor costs too high?
Financial restaurant KPIs give you visibility into your costs, pricing, and ultimately, your profitability. Cost of Goods Sold (COGS) Cost of Goods Sold tells you how much it actually costs to make the food and beverage sales you sell. A typical COGS for a restaurant is around 30%-40% , depending on your concept and pricing.
The choices restaurants make today on how to invest in marketing and leverage various food sales channels will have profound impacts for years to come. An emerging metric of success in the restaurant analyst community will be surrounding “percent direct digital” sales.
The prices of goods and services have increased 8.5 Rebounding demand, supply chain issues, and labor shortages are mostly to blame for driving prices to an all-time high. It requires a careful examination of your recipes, your team’s prep efficiency, and menu item prices. Prioritize Accurate Recipe Costing.
For up-to-date COVID-19 resources and information for the restaurant industry, visit restaurant.org/COVID19. OpenTable added new features and price cuts for 2020 as they recognize the road to recovery will be long and difficult. Standard subscription and cover pricing resume only in January 2021* (restrictions apply).
For operators, restaurant apps mean higher sales, greater customer retention, and smoother day-to-day operations. The restaurant industry is going mobile, and restaurant apps are at the center of this transformation. If your business isnt keeping up with the changes, you risk falling behind and not meeting modern customer expectations.
Your restaurant’s main selling point is the food. Instead of promoting items according to price or margin, promote what your customers love. Instead of promoting items according to price or margin, promote what your customers love. Train your staff to build other taking points. Create a Conversation Trigger.
By identifying which dishes are your most profitable, you can start to make informed decisions. Identify pain points and strategize on how to resolve them There are many challenges and opportunities for those in the restaurant sector, but not all of these affect every business in the same way.
Break-even point. Sales per labor hour. Ideal menu price. Your CoGSs is an essential number to have when determining your menu prices, inventory and impacts your net profit margin. You can now determine what percentage this is off your overall sales to get a picture of your restaurant's financial health.
While staffing has always topped the list of restaurant owner/manager pain points, it now seems to be at crisis proportions. March restaurant sale surged 36 percent year-over-year and nearly reached 2019 levels. And the situation isn’t likely to improve soon as more competition in the battle for talent is anticipated.
Not only is it a critical sales tool for the franchisor, but it also gives a prospective franchisee vital insight into the franchise opportunity and help them make an informed decision to invest. Where franchisors can miss an important opportunity is in the presentation of the financial information.
Below is more information about restaurant reporting and a list of the best reporting practices restaurants should consider following. For example, basic point of sale (POS) systems or integrated restaurant management systems are useful digital tools that enable data reporting. Everything nowadays is trackable.
Consider, for instance, a scenario in which your Point of Sale (POS) system can forecast the popularity of a new dish based on historical customer behaviour. This capability can prove invaluable for refining pricing strategies, optimising ingredient and waste management, and planning forthcoming shifts, among other benefits.
Setting this context early provides a lens through which your customers can better understand your decisions elsewhere and provide some rationale for things that seem out of place like unique ingredients, unfamiliar techniques, or premium prices. No other artifact in your restaurant is more capable of setting the tone or telling your story.
Own Your Changes In March 2023, restaurants’ food prices were 8.8 One of Merriam-Webster’s definitions for orchestration is “to arrange or combine so as to achieve a desired or maximum effect.” Customer expectations are level set by their most advanced in-store and digital experiences.
Since we can’t get away from rising prices and supply chain bottlenecks, we can look for new approaches that can help manage the impact. Many restaurants are doing this by raising prices, cutting costs, taking items off the menu, and making do with lean crews. Does my supplier: Tell me how to store, keep, and rotate produce.
Restaurants have endless third-party ordering app options, but those do come with a price, approximately five-twenty percent of each sale. Contactless payment eliminates a potential hurdle between you and more sales. It is safe to say that the future of restaurants has been altered forever. What Is Contactless Dining?
No more scrambling to update information across multiple platforms, worrying about inconsistenciesjust one streamlined solution that keeps everything in sync. If one update slips through the cracks, you could end up with mismatched pricing or customers ordering items that are no longer available. What is Menu Management Software?
71 percent rely on delivery for 11 percent or more of sales. 33 percent rely on delivery for more than 20 percent of sales. 65 percent rely on mobile ordering for 11 percent or more of sales. 25 percent rely on mobile ordering for more than 20 percent of sales. Investment in delivery and mobile ordering pays off.
The popularity of drive-thru continues as sales are up 30 percent since 2019. Guests also want to be engaged and well-informed throughout the ordering process. An intuitive content management system (CMS) empowers you to feature the right items and promotions at the right time of day to boost sales.
Well show you how to leverage: Your local restaurant scene Your restaurants brand Your digital assets The community around you Then, reveal how to measure your marketing efforts so you can continuously refine your strategy and strengthen your connection with customers. Thats why a strong marketing strategy is the key to staying ahead.
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. Understanding farmers’ economic vulnerability.
As the internet shifted from a place where people went to find information to a place where people went to be entertained, more advertising options opened up. If restaurants want more sales and expect an increase in advertising to cause a proportional increase in customers, you can do that. The Growth of Digital. The Benefits of Mail.
But before making the switch, one key question stands out—what is the actual self-order kiosk price in 2025? In this guide, we break down everything from upfront hardware expenses to long-term value, so you can make an informed investment in your restaurant’s future. Pricing for self-order kiosks can range widely.
Additionally, when buyers place an order through Square Online Store, sellers receive their contact information in the Square Customer Directory and are able to maintain sales history for those customers. Processing is free on all on-demand delivery orders through July 8, 2020—up to $50,000 in sales. Visa SMB Help.
Restaurant business intelligence , or BI, “leverages software and services to transform data into actionable insights that inform an organization's strategic and tactical business decisions.” Gathering the data can be easy—but the true value in business intelligence for restaurants comes from the decisions it informs.
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