The Economy Is Changing The Way Restaurants Do
The economy has been "restaurant owner
unfriendly" for over a deacde now, however, we've
noticed some interesting statistics that we'd
like to share with the readers of this website.
- The number of daily transactions a
typical restaurant processes is virtually
unchanged. However, the average
dollar amount per transaction has decreased
by 5-10 percent.
- The costs of food have increased
- Increasing menu item prices seems to be
a bad strategy. The most
successful restaurants are cutting back
labor or extending business hours, reducing
menu variety and slightly adjusting portion
- Credit card processing rates are being
pushed lower due to increased competition.
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- The availability of credit is impacting
restaurant owners hard. Positive
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equipment lease proposal.
- Gift cards remain an excellent way to
increase cash reserves and improve customer
- Removal of pre-prepared foods from a
menu seems to be a good move. In
particular par-baked bread and pizza crusts
are much more expensive than freshly made.
Fresh also tastes better.
- Seasonal vegetables are getting less
expensive in most areas. Small
local growers are eager to sell to restaurants but
don't have the advertising budget to move
their produce quickly. A few
phone calls to area growers is all it takes
to improve quality and reduce food costs.
- Some restaurants have begun selling
inexpensive wines with sweetener added.
Served hot, these wines are commanding a
healthy price at desert.
- Deep fried foods are tasty but healthier
alternatives keep customers returning.
Some of the restaurants we see failing have
an "everything is fried" menu.
- Reworking your menu's pricing structure
so that no more than 35% of an items price
represents food cost is an excellent idea.
This may mean reducing prices and portion
sizes in some cases.
- Restaurants that allow smoking are doing
worse. Bars that allow smoking
are doing better. Combination
properties seem to benefit from a no smoking
- By using a POS system, it is possible to
run staff sales contests.
Restaurants which reward up-selling generate
higher value average tickets.