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Weathering the Storm: Keeping Your Restaurant Profitable in Times of High Inflation

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Weathering the Storm: Keeping Your Restaurant Profitable in Times of High Inflation


Inflation can be a challenging period for any business, but restaurants face unique and intensified pressures. With ingredient prices on the rise and consumers tightening their belts, staying afloat can seem like an uphill battle. Yet, even during these tough times, there are strategies that can help your restaurant not only survive but thrive.


Menu Engineering

One of the most direct impacts of inflation on a restaurant business is through the costs of ingredients. To manage this, consider menu engineering (Members of Brand Points PLUS, you'll enjoy a 25% discount on your Navi Cost Control subscription. If you're not a member of Brand Points PLUS, click here).


Menu Engineering in Practice

  • Regularly evaluate item profitability and sales performance.
  • Alter portion sizes without sacrificing perceived value.
  • Rebalance your menu by introducing or highlighting more profitable items.


Maximizing Operational Efficiency

In times of high inflation, trimming the fat from your operation is more than a saying—it's a necessity. Focus on maximizing efficiencies:


Streamline Workflows

  • Map out your kitchen processes and identify any bottlenecks.
  • Cross-train your staff to be more adaptable.
  • Invest in time-saving equipment where your needs align with available technologies.


Optimize Inventory

  • Reduce food waste by implementing stringent inventory management practices.
  • Work closely with suppliers on forecasting and ordering only what you need.
  • Explore non-perishable or longer shelf-life options for certain ingredients.


Creative Marketing and Cross-Promotion

When every dollar counts, your marketing efforts must be strategic and effective:

  • Share the stories behind your dishes, the local sourcing, and your commitment to quality.
  • Leverage social media to create engaging content that resonates with your community. Encourage your guests to post pictures and tag yout restaurant for a chance to win a free appetizer.
  • Offer behind-the-scenes tours, cooking classes, or chef's tables for an exclusive experience.
  • Partner with local businesses for cross-promotions and events.

Restaurant server carrying take out bags


Diversify Revenue Streams

It's unwise to rely solely on dine-in sales. Diversify your revenue streams to spread the risk:

  • Promote take out and delivery (ensure your menu is priced accordingly if using third party delivery apps).
  • Create meal kits for customers who want a restaurant experience at home.


Catering and Private Events

  • Market your restaurant as a venue for private events, like weddings, birthday parties or corporate gatherings.
  • Offer off-site catering services to capture a different market segment.
  • Create specialized menus for large party sizes or specific dietary needs.

Technology Upgrades Without the Hefty Price Tag


Prioritizing Customer Satisfaction and Loyalty

Happy customers are the lifeblood of any restaurant, especially during tough economic times. Focus on building and maintaining loyalty:

  • Regularly train your staff to provide top-notch service.
  • Implement customer feedback systems and act on the responses.
  • Create personalized experiences for your regulars to make them feel truly appreciated.


Remember that every journey begins with a single step, and every successful business has faced and overcome challenges. Consider these recommendations as a roadmap, and tailor them to your unique circumstances. With determination, creativity, and a dash of innovation, your restaurant can weather the storm of high inflation and remain a culinary delight for your guests.



Flanagan Foodservice at 11:37 AM
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Jackie Oakes
Name: Jackie Oakes
Posts: 3
Last Post: April 30, 2024
Flanagan Foodservice
Name: Flanagan Foodservice
Posts: 119
Last Post: March 11, 2024

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