- Change pricing strategy to focus on items with the highest margins and charge for add-ons and extras.
- Implement strict hygienic protocols, such as a touchless automatic sauce dispenser.
- Invest in technology that revolutionizes customer service.
- Collaborate with other restaurants to reach new audiences, share resources, and pool marketing efforts.
- Build a network of like-minded professionals, identify strengths and weaknesses, and brainstorm mutually beneficial ideas.
Restaurants have been among the hardest-hit businesses during the pandemic. The situation has been further aggravated by inflation rates rising worldwide. High inflation rates have caused input costs like wages, rent, and food prices to skyrocket, causing restaurants’ financial performance to suffer. However, all hope is not lost.
Investors can take this opportunity to revive the restaurant industry and get significant investment returns. Here are some ways investors can revive the restaurant industry during inflation.
Change your pricing strategy
As input costs rise due to inflation, restaurants’ profits decline. However, an opportunity arises during inflation crises: price changes. Increasing prices may seem counterproductive, but as other businesses grow costs, the demand stays relatively constant. In return, investor returns can increase.
One fundamental way to go about this strategy is to focus on changing the pricing of items with the highest margins. A restaurant should also consider charging for add-ons and extras that customers usually take for granted, such as condiments or other side dishes.
Implementing hygienic protocols
Inflation has y taken its toll on the restaurant industry, and restaurant owners must act to revive their businesses. One way to accomplish this is by implementing strict hygienic protocols, which keep customers safe and reassure them that their dining experience will be pleasant.
Introducing a touchless automatic sauce dispenser is one of the simplest yet most effective ways to do this. This device eliminates the need for customers to touch shared surfaces, reducing the risk of transmission of harmful bacteria. It’s a small but significant step in the right direction and shows that restaurant owners care about the health and well-being of their patrons.
Invest in technology
Restaurant owners’ best chance of surviving inflation is to invest in the technology that revolutionized customer service during the pandemic. Technology advancements like digital ordering systems, online payment options, and even robots for staff work are the future of food service as the pandemic effects remain.
These investments can cut costs in the long run and increase efficiency, enabling restaurants to recover in a post-pandemic market.
Collaborate with other restaurants
By building relationships with other establishments, you can create mutually beneficial partnerships that help you reach new audiences, share resources, and even pool your marketing efforts to save money on campaigns. However, collaboration requires tact, creativity, and a willingness to work with others toward a common goal.
Build a network of like-minded professionals
The first step to successful collaboration is to build a network of other restaurant owners, chefs, and managers who share your values and goals.
Attend industry events, join online forums, and participate in local restaurant groups to meet other professionals in your area and build relationships. Look for opportunities to work together on small projects or events to get to know each other’s working styles and build trust.
Identify your strengths and weaknesses
Before pitching collaboration ideas, you must identify your strengths and weaknesses as a restaurant. Consider what you’re good at, what sets you apart from other establishments, and what resources you have that could be valuable to others.
At the same time, consider where your restaurant is weakest and how other restaurants could help you address those challenges. By knowing yourself well, you can better position yourself as a strategic partner to other establishments.
Brainstorm mutually beneficial ideas
One of the keys to successful collaboration is to find ways to benefit all parties involved. In the restaurant industry, there are countless opportunities for collaboration, from joint menu items and meal promotions to cross-promoting each other’s social media posts or pooling resources for large-scale events. Brainstorm ideas with your network of restaurant professionals and be open to exploring new possibilities.
Communicate clearly and frequently
When collaborating with other restaurants, always maintaining open and honest communication is essential. Establish clear goals and expectations, and set realistic deadlines, responsibilities, and budget requirements. Check-in with your partners regularly throughout the collaboration process, share progress reports, and celebrate successes.
Inflation isn’t ideal for any business, especially those in the restaurant industry. However, as an investor, you can take advantage of the situation by reviving the restaurant industry through changes like digital ordering systems and unique offerings. As input costs rise during an inflation crisis, the profits decline.
Restaurant owners must adapt to the current (and future) customer needs, collaborate with competitors, and analyze their suppliers to keep costs low while keeping profits high. With these strategies, investors can revive the restaurant industry and generate significant profits.