search.noResults

search.searching

saml.title
dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
BRIEFING T


he pandemic has forced changes in nearly every facet of restaurant operations, including menu and


pricing. Modulating those changes – by raising prices or altering menu off erings – is proving to be a tricky balance of art and science. “Operators have a new task: rebuild their business’s pricing strategy and rethink operations and processes,” says Marco Amatti FCSI, CEO of São Paulo, Brazil-based MAPA Assessoria. “There is no time to raise prices as a simple reaction. If you are losing money, the ‘fi rst instinct’ is to raise prices, but [it is] probably the worst solution if you lose the public. It’s time to stay in the market. Datasheet, KPIs (key performance indicators) and market research can support any decisions you make.” Juan Martinez FCSI, principal of


Profi tality in Miami, Florida, notes that it was “some time” before a price


“The one saving grace is that landlords have become more reasonable, and are charging fairer rents since the pandemic. They’d much rather have an occupied space paying less than an empty space paying nothing”


increase from a major brand appeared in the press, a period that was broken when Chipotle and others announced increases. Operators can tell the proper time to raise prices by analyzing their cost structure and bottom-line profi tability. “As food, labor and other costs go up there is no option but to raise prices,” Martinez says. “Coming out of the


120


pandemic there is no choice, since both of these costs have gone up.” One is related to shortages due to factory stoppages and changes in demand, he explains, while the other is the increase in hourly pay needed just to get employees to work for the restaurant.


Slowly and discreetly Restaurants have “slowly and discreetly” raised prices over the last few years to compensate for the lower margins created by third-party delivery fees, according to Arlene Spiegel FCSI, president of Arlene Spiegel & Associates in New York City. “Now, with a much higher percentage of their business going to delivery fees than before the pandemic, they raised their prices dramatically without fear of customer pushback.” Operators know it is time for a raise


when the cost of goods and labor grow markedly higher. “The one saving grace is that landlords have become more reasonable, and are charging fairer rents since the pandemic,” Spiegel adds. “They’d rather have an occupied space paying less than an empty space paying nothing.” Restaurants regularly spend time researching their competitors and the economic conditions of the markets they serve. “They usually get it right,” says Spiegel. “However, there is always room to add ‘value- oriented’ menu items to appeal to the price-sensitive guest.”


Whether or not price increases have been too long in coming “cannot be answered with singular yes or no,” says Karen Malody FCSI, founder and president of Culinary Options, LLC in Portland, Oregon.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132