In September 2022, inflation surged by 5.6%, which continues to significantly impact profit margins. So, how can you best cope with inflation in your restaurant?
With creativity, flexibility, good organization, and effective communication, you can reduce your restaurantâs costs, diversify sources of revenue, attract more customers, retain existing ones, and thereby increase your turnover. Here are 16 tips that can undoubtedly help you cope with inflation in your restaurant!
Download the list of tips to follow!
Between inflation and soaring energy prices, you must succeed in preserving your profit margins. Here, we provide you with 16 tips. And what if we told you EVEN MORE? đđđ Join us on Tuesday, May 16th, at 3:00 PM for a 1-hour session during which Amaury from Stoquemarket and Louiza from Malou will share numerous detailed strategies to help you reduce the impact of inflation successfully.
đ˘ Because reducing portions and/or increasing prices may seem like the most radical way to deal with inflation. However, these measures can undermine customer satisfaction and loyalty. So, you may wonder where to strike the right balance according to your positioning? What other actions can be implemented? Find out on May 16th!
Adapting your restaurantâs menu to increase profitability and cope with inflation.
1. Adjusting the menu of your restaurant to enhance profitability and cope with inflation.
On the menu of your restaurant, some dishes cost you less, while others are more popular. To improve your profit margins and cope with inflation in your restaurant, highlight the dishes that are most beneficial for you. How can you encourage customers to choose them? Ensure these dishes stand out visually on the menu, create a category like âMust-Tryâ or âHouse Specialtiesâ to showcase them. Having a shorter menu increases your chances of selling them.
2. Limiting the most expensive products to cope with inflation.
Itâs not about compromising on quality, but rather intelligently rethinking certain dishes. Do you offer dishes that consist of expensive ingredients but donât sell much? In that case, you can either remove that dish from the menu or substitute the costly ingredients with more affordable ones.
3. Reevaluate the prices on your menu.
The prices you set are crucial for your sales and profit margins. They must remain reasonable to not drive away consumers while also absorbing the increase in raw material prices, etc. Today, you need to increase your restaurantâs revenue to cope with inflation, but in a subtle manner! You can apply this price increase to your best sellers. Thanks to their popularity, you can continue selling them.
4. Opt for a digital menu.
Adapting to inflation in your restaurant means adjusting your menu. You modify the Ă la carte dishes based on their profitability, as well as the prices to ensure your margins, and even the ingredients. So, to avoid reprinting your menu every time, prioritize a digitalized menu! It offers you more flexibility!
To digitalize your menu, our friends at Deliverect offer you the best services!
Reducing water, gas, and electricity consumption to lower costs and cope with inflation.
5. Reduce the use of electricity and gas to cope with inflation.
These resources are essential for running your restaurant and kitchen. However, there are many actions that can reduce consumption without affecting your operations. Such as turning off your restaurant sign at night, as well as kitchen equipment that is not in use during service, and not preheating the oven when empty. For gas usage, Ecotable recommends favoring shorter cooking times.
6. Save water.
Water is also a vital resource for your restaurant: from cleaning cutlery to cleaning the kitchen and equipment, as well as the consumption of drinking water. How can you reduce these essential tasks to cope with inflation? Ecotable invites you to stop changing cutlery between the starter and main course, and also to reuse ice buckets for kitchen cleaning.
For more tips on how to save on resources, we invite you to check out Ecotableâs article.
Reduce food waste to maximize your stocks.
7. Use products in their entirety.
More and more restaurants are doing it! A single ingredient can offer you numerous original preparations that elevate your dishes. Letâs take the example of carrots, with their peels transformed into chips, and their greens into pesto or sauce. This practice allows you to reduce the number and quantity of ingredients used per recipe.
8. Offer daily specials at competitive prices to cope with inflation.
The daily slate/menu: a practice that allows you to use products day by day and reduce waste. If you have items close to their expiration date, make every effort to sell them before they go to waste. For this, you can show creativity by offering daily specials at more competitive prices than the rest of your menu to encourage sales.
9. Optimize your stocks.
Balancing the right amount of ingredients, neither too much nor too little, remains a real challenge for restaurateurs. So, how do you manage your stocks optimally? In addition to offering a daily slate, conduct a daily inventory, and analyze the most popular dishes based on periods of demandâŚ
Keeping your customers informed about the current situation to gain their understanding and cope with inflation.
10. Communicate about the changes at your restaurant.
âYou need to adapt to cope with inflation in your restaurant, like everyone else, but donât catch your customers or potential customers off guard. Be transparent by communicating about the changes implemented in your restaurant. Instagram is ideal for posting posts and stories about this, explaining why and how you need to adapt. This way, you will gain the respect and understanding of your customers.â
11. Help customers understand what they have to gain.
Some establishments choose to keep the same prices but reduce the quantity or quality offered. This practice can have the opposite effect on a customer who is aware of your price increase thanks to transparent communication. In addition to sharing your changes, use Instagram, Facebook, etc., to continue showing your customers the quality, generosity, and deliciousness of your dishes. This increases your chances of having them return and recommend your restaurant.
Expanding sales channels for more sources of revenue.
12. Implement or accelerate takeout sales.
The more income you have, the better your restaurant copes with inflation. Takeaway sales remain an ideal way to increase your revenue, especially during lunchtime. You donât need a new location, just optimal organization at the restaurant and effective online communication. If you are located near offices, donât hesitate to implement promotional offers with the companies working there!
13. Increase your delivery sales without suffering from the commission.
Multiplying your delivery turnover by 2, 5, or 10 times is possible, even in the face of inflation! The key is to find a way to reduce the commission imposed by delivery platforms. How to do it? Set up your restaurant on a webshop to reduce delivery commissions from 30% to 10%. More details here.
Filling up your dining room to better absorb fixed costs and cope with inflation.
14. Communicate effectively to attract new customers daily.
To increase your turnover and overcome inflation in your restaurant, you need to attract as many customers as possible! To achieve this, you must make yourself visible where customers search for a restaurant. We explain how to appear first in Google search results, TripAdvisor, and other directories in this article. And to become known on social media, discover all the steps to follow here.
15. Build customer loyalty.
It is more necessary than ever to build customer loyalty during this unstable period. As the French plan to reduce their restaurant outings, bringing back your customers becomes crucial. How to do it? Thank them for their visit, respond to all customer reviews to show your appreciation, and maintain a positive online image. We provide you with all our tips here.
16. Reduce no-shows.
On days with high occupancy, you must ensure not to block a table unnecessarily and potentially miss out on customers. Therefore, itâs essential to guarantee that your clients honor their reservations. Zenchef is the ideal ally to reduce no-shows!
