How to negate rising restaurant costs without raising prices, or cutting staff.

This issue is all about how to battle rising costs in a restaurant without raising prices(because prices are at a threshold)

Or cutting staff (because they are hard to find in the first place).

Catch some more information about how we do that at Benchmark Sixty.

We all know that the cost of doing business, especially in a restaurant is increasing.

And we all know that the industry isn't getting any easier.

So I wanted to give you a few ways that restaurants can try to negate rising costs without raising prices or cutting labor costs.

There are a few common ways, and then there is our go-to strategy HERE

Typically, these are the 4 most common ways to accomplish this difficult task.

• Negotiate better prices with suppliers.

Never know until you ask.

• Implement cost-saving measures.

There are likely lots of opportunities here.

• Offer discounts or promotions.

Customer count is always the most important thing.

• Diversify the menu.

If you haven't engineered your menu based on profit, its time you did.

In the past, there has been no one-size-fits-all solution for negating rising costs in restaurants, and it may have be necessary to try a combination of these strategies to find what works best for your business.

Not an easy task to tackle all of those things at once.

However, what I have always found to be the absolute best way to negate rising costs, without raising prices or cutting staff...

Is all about increasing productivity.

Check this out

Lets say your restaurant usually serves 5 guests for every hour the staff work...

(This is a measure of productivity)

If your average guest spends $30, then you are generating $150 with those guests.

And if your profit margin is 10%, then you are making $15...

You following?

So if you were able to increase that from 5 guests, to 5.2...

Your new revenue is $156.

But your expenses stay the same.

So your profit increases.

This is the basics of how we helped close to 300 restaurants accomplish this daunting task in 2022.

(Trust me, there is more to it.)

You can find out more about how we partner with restaurants all over the world right HERE

Also, whenever you are ready there are a few other ways I can help you.

1. If you are looing for ways to negate rising labor costs, because wages are climbing and turnover is expensive, then I would recommend starting with something affordable -> This is for you
2. If you are a restaurant operator or owner who realizes that increased productivity, and lower turnover are the only responsible ways to succeed in our industry these days... I've got you covered. Let's connect for a discussion Jim Taylor
3. If you are a service provider to the restaurant industry and you are looking to partner, or build your business in 2023, there is a spot for you right here.

Until next Monday.

Jim