Groceries, clothing, gas. All of which have had significant price increases in the last 6 months. These are just a few of the necessities which now cost double, and in some places, triple, of what they had cost prior to the wave of inflation. What about discretionary spending? As the prices surge, consumers are spending less and less on items that they don’t necessarily utilize in their daily lives. That puts you, as a restaurant owner, in a situation where you must determine how to maximize your profits despite a potential recession being right around the corner. Here at mKonnekt, we have developed strategies that will put you in the position to do just that.

Cost Cutting measures

Purchases

For any business owner, the capitalization of profit margin is what indicates their success, and in the restaurant industry, it is no different, and it starts from the very foundation ; buying ingredients. Now, more than ever, it is crucial to buy the right ingredients at lower prices to build up a loyal customer base. After all, the better the ingredients, the better the food, which leads to returning consumers. With prices rising however, sourcing partners are also raising prices, with items such as chicken rising by nearly 20 percent. Therefore, it is becoming increasingly important to search for sourcing partners who will still provide your restaurant with required ingredients for optimal prices. Another option that is becoming more common is to participate in a co-op, where numerous restaurants buy ingredients from the same supplier, and it is still considered a bulk purchase, and prices are reduced significantly. One must determine, as a restaurant owner, if there are others in the area open to this idea, as it could potentially benefit everyone.

Menu optimization

Menu optimization is a frequently overlooked aspect of running a restaurant that can actually prove to cut costs significantly. Essentially, menu optimization is doing more with less. It starts with removing or rebranding items from your restaurant’s menu that tend to not sell in high units. Next, focalize items that DO sell, and ensure that when one thinks about your restaurant, they think of that particular food. For example, the minute anyone thinks of Popeyes, they think of the chicken sandwich, as they have advertised it extremely well, and have diverted their funds towards the sales of this sandwich, thereby increasing profit. Lastly, always ensure that you have the right ingredients to make the dishes which are the face of your brand, so that it continues to be that way. 

Revenue Improvement Measures

Capitalizing on total sales is what any business’s goal is, but during harsh times, it becomes all the more important to do just this. The focal point of any business’s revenue is customer loyalty, and it is no different in the restaurant industry. mKonnekt details an A2A approach which essentially starts with a potential customer’s journey to becoming an advocate for your brand. We highlight the importance of having loyalty programs, rewards and much more. Having a loyal customer base attracts more customers, generates more profit, and builds up your restaurant immensely. 

Wrap-up

Inflation is hitting each and every industry, let alone the restaurant industry. As restaurant owners, you should be well prepared for this. Contact us today for a tailor- made marketing strategy and take data-driven decisions in this competitive industry.