If there’s one industry that’s well aware of the effects of inflation it’s the hospitality industry, more specifically restaurants, bars and cafes!
Fluctuating ingredient prices can put a strain on profit margins, making it crucial for restaurants to develop effective strategies to thrive in hard economic times.
Our editorial details the various ways restaurants can tackle the issue of food inflation while maintaining their quality and customer satisfaction.
Take Control of Your Costs
Monitoring ingredient prices regularly, tracking purchasing trends, and identifying cost-effective alternatives will be the 1st point of call.
This is an opportunity to establish strong relationships with local suppliers who can provide you with competitive prices and reliable ingredients.
Using EPOS Systems for the Hospitality Industry
Using tools proven to be highly effective with regard to the management of your business is where it starts.
Today’s EPOS market includes comprehensive solutions that streamline operations, enhance efficiency, and provides valuable insights into your performance.
Take Control of Your Costs with EPOS Systems: EPOS systems for hospitality industries help you maintain a tight grip on your costs by tracking inventory levels in real-time.
You can set up alerts for low-stock items, preventing unexpected shortages and ensuring you order only what you need. Additionally, EPOS systems enable accurate portion control, reducing waste and optimising ingredient usage.
Evaluate Labour Costs: EPOS systems often come equipped with staff management features, allowing you to monitor labour costs at all times.
Take Epos Systems for takeaways as an example, the tools here allow you to ensure optimal staffing levels while keeping labour costs in check.
Evaluate Labour Costs
Labour costs represent a significant percentage of a restaurant’s expenses. In the face of food inflation, it’s crucial to evaluate these costs and identify areas where efficiencies can be gained without compromising the quality of service.
Implement Efficient Scheduling: Proper scheduling based on historical data and projected demand can prevent overstaffing during slow periods and understaffing during peak times. This not only helps manage labour costs but also ensures that your customers receive timely and attentive service.
Invest in Staff Training: Well-trained employees can work more efficiently, reducing the need for extra hands on deck. Training staff members to understand the importance of portion control, and waste reduction, contributes to saved costs.
Raise Your Own Prices
While the idea of raising menu prices might be daunting, it’s often a necessary step to counter the effects of food inflation. In addition to this customers tend to be more than happy to pay for food items that are quality or if the restaurant is well branded.
Communicate Value: When adjusting prices, communicate the value your restaurant provides. Highlight what the customer gets, and make sure this is highlighted from testimonials on social media, that’s the way to do it in the digital age. This can help customers understand that the price increase is reflective of the value they receive.
Monitor Competitors: Keep an eye on the pricing strategies of your competitors. Being aware of the market landscape can help you position your restaurant’s pricing appropriately, seeing where you’re adding better value and then adjusting.
Why Does Inflation Matter for Your Hospitality Business?
Inflation directly impacts the hospitality industry due to its heavy reliance on perishable goods and that’s the nature of the beast.
When ingredient prices rise, profit margins usually shrink, affecting financial profits.
If you’re not proactive in addressing food inflation, it could lead to compromises in ingredient quality, which can have a negative impact on customer satisfaction and loyalty. Relationship building also helps when dealing with this issue, building supplier restaurants for fair pricing.
Conclusion: Thriving Despite the Challenges
Food inflation is a formidable challenge that every restaurant will face at some point. However, armed with the right strategies and tools, you can navigate these turbulent waters successfully. By taking control of your costs, utilising advanced technology like EPOS systems, evaluating labour expenses, and strategically adjusting prices, you can maintain the integrity of your establishment while weathering the storm of food inflation.
Remember, the key is to strike a balance between managing costs and preserving the value and quality that your customers expect. As you implement these strategies, you’ll not only be better equipped to face food inflation head-on but also position your restaurant for sustained success in the competitive hospitality industry.