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Restaurants Battle High Food Costs

    Home Blog Restaurants Battle High Food Costs
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    Restaurants Battle High Food Costs

    By Taren Martin | Blog | Comments are Closed | 2 February, 2022 | 0

    You may have noticed the cost of food and labor has soared, peaking in November of 2021.  Data shows limited service restaurant prices are up 7.9% from last year, while full service restaurant prices are up 6%.   Chicken has gone up 36%, while beef has increased a whopping 41% along with so many other ingredients. Consumers are attentive to prices and will notice price changes not only in grocery stores, but in restaurants as well.  So, what exactly is a restaurant to do? 

    First, as a restaurant operator, you need to focus on the long-term. What type of growth are you expecting within the next few years? What are your projected operating and overhead costs? What are the projected profits? Are you planning major changes for the menu, or will the menu remain fairly untouched? Though the answers to these questions may be vague or mere estimates, they are important. It is important to know the direction your business is taking, and it is even more important to understand that the choices you make today will affect your restaurant’s future. 

    Second, invest in your business. Invest your time. Know the ins and outs. Know which employees are making you the most money and which ones are costing you money. Recognize which menu items are generating the highest profits. Get to know your customer base, and familiarize yourself with competitors along with their pricing structures. When such information is recognized and understood, restaurant operators can slowly but surely increase their menu item prices to assure steady profit growth and drown out expenses. 

    QSROnline is an advanced restaurant management company that specializes in data automation, food cost analysis, labor cost control, and enterprise reporting. Contact us today to learn how our services can benefit your restaurant!

     Email us at sales@qsronline.com, or call our office directly at 800-971-1650. 

     

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