How Restaurants Can Combat Inflation with the Top-Down and Bottom-Up Method to Profitability

While we’re all ready to put the pandemic behind us, many industries are still dealing with the disruptions left in its wake. The restaurant industry perhaps more than others. Neck and neck with the labor shortage, inflation has recently become a huge issue that operators are forced to combat.  

The prices of goods and services have increased 8.5 percent from March 2021 to March 2022, accounting for the highest inflation rate since December 1981. Rebounding demand, supply chain issues, and labor shortages are mostly to blame for driving prices to an all-time high. 

According to recent data from Ipsos, nearly two-thirds of adults (65%) believe the rate of inflation will go up in the future. With little relief in sight soon, restaurant operators will be forced to examine their operations to find ways to obtain profitability. One highly effective strategy is taking the top-down and bottom-up approach.

Menu engineering is a top-down approach to increasing revenue while Actual…