"Restaurant Winners Have a Common Trait: Keeping a Lid on Prices."
This headline makes perfect sense: all things being equal, consumers will prefer lower prices, particularly in tough economic environments.
It's also easier said than done.
Wingstop Restaurants Inc., Texas Roadhouse, Chipotle Mexican Grill and Domino's are four companies that, according to The Wall Street Journal, have each earned "double-digit, year-to-date share price gains relative to a 7% jump in the S&P 500."
And all four companies indicated that continuing to deliver value to consumers has been instrumental in outperforming their competitors.
But how can restaurants maintain affordable prices as food prices and labour costs continue to rise?
Here are three ideas to consider:
➡ Explore Self-Service Options
For quick-service restaurants, enabling consumers to order their meals using self-serve kiosks and mobile apps can reduce labour costs and better meet the needs of convenience-oriented customers who'd rather do it themselves.
➡ Ensure Staff Focus on Top Priorities
Whether it's a server suggesting the day's specials or a QSR cashier asking if you want to upsize your fries, it's clear that well-trained staff can influence what customers buy... and how much more they spend.
Technology platforms that keep staff up-to-date on new product offerings and communicate corporate priorities have a double benefit: they help reduce training time (and associated labour costs) AND help teams focus on selling more profitable items.
➡ Embrace Localization
For restaurants where customers order at a counter (as opposed to being served by a team member at a table), digital menu boards make it easier to feature offers that make the most sense for individual locations.
For instance, a restaurant on a college campus might benefit by featuring value meals, whereas a restaurant in a wealthier neighbourhood might do better showcasing the chain's newest (and most premium-priced) offerings.
Digital menu boards allow restaurants to easily adjust what they feature during any given daypart, enhancing relevance and driving incremental sales. And it's easier for restaurants to maintain lower prices on core menu items when they're confident in their ability to make upsell items more enticing.
= = = = =
All three recommendations outlined above are examples of technology employed within restaurants to help operators run more efficiently, allowing them to offer acceptable prices to value-seeking consumers while still maintaining profitability.
Better technology => better operations => more satisfied customers => better performance
... that's how restaurants can maintain affordable prices as food prices and labour costs continue to rise.
#BrickAndMortar #Retail #QSR #Restaurants #Technology
Executive Director of Business Development at Culinary Depot/Founder of the Hope Organization
3moImpressive achievement, Jersey Mike's Subs! A 12% unit growth in 2023 is a testament to your dedication and strategic vision. This milestone reflects not only robust business acumen but also a strong connection with your customer base. Keep setting the bar high!