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Restaurants that have survived the pandemic are now threatened by recent inflation. People are quickly feeling the price increases among everyday items affect their decisions.

Now restaurant owners are faced with the effect inflation has on the industry. Inflation can cause an increase in costs in all aspects of the restaurant industry. That includes rent, food, labor, utilities, and insurance.

According to the Bureau of Labor Statistics, wholesale food costs were 17% higher in March than last year. Along with a rise in hourly earnings for employees than the prior year.

Establishments deal with rising costs of goods while seeing fewer customers walk through the door. Some people are eating out less and finding it more affordable to cook at home. Cutting back is the first thing people begin to do when prices rise. Diners are more hesitant to dine out because their everyday expenses rapidly increase. With interest rates rising, people find it more challenging to borrow money or lines of credit as well.

Here are 5 tips to help you fight inflation, save money and keep customers in the door.

1. Find Ingredient substitutions

Restaurant owners can agree that food costs are one of the biggest challenges, especially when it comes to inflation. Taking a closer look at your inventory costs can be beneficial by revisiting your cost analysis. Is there any ingredient that you use a lot of that’s seriously cutting into your budget? Or maybe a hot-selling dish brings significant revenue but includes pricey ingredients which impact your profit.

By exploring ways you can swap ingredients for something less pricey, you will begin to see savings.

2. Audit your menu

To do a proper menu audit, take all the factors into account in your menu and the profits you make on each dish. Sort the menu items out from the most highly profitable to the least. When you’re finished, evaluate what you can cut off your menu and save for something more critical, or put the money elsewhere into another dish.

To do this properly, you’ll have to take a good look at your menu and know the profit you make on each dish. Segment your items into four groups and make adjustments based on their performance. Take into account which dishes really work and which one’s dont.

3. Consider Price Changes

Increasing your prices may actually prove to be more beneficial to your establishment. Consider adding ingredients to make the cost more valuable, or try including a premium side to bundle and spend more.

4. Reduce food waste

If you’re not on top of monitoring your inventory, you may risk a big part of your budget by not accounting for food costs. Don’t just count inventory; dig into your numbers and understand where exactly you are losing money due to waste and over portion sizes. If you notice that guests are finishing their plates, you may need to look into smaller portion sizes. Optimize your recipes and use the most out of all your ingredients.

5. Try to Reduce Food Costs

Profitable restaurants usually incur 27%-36% of their revenue on direct food costs. In the current inflationary environment, keeping a close track of our direct food costs is more important than before. Accurate and consistent ordering from reliable vendors should also help. Do not hesitate to ask for price break volumes and freeze food if it makes sense. We occasionally see local merchants and wholesale clubs like Restaurant Depot, Costco and Sam’s Club offering limited-time deals on quality food products. A lot of small independent restaurants we have talked to do not hesitate to buy through such retailers, especially the products which they have tried before.

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When opening the doors to your new restaurant, it’s important to explore all the ways you can build new customers and get them excited about your place. You want to get and get fresh faces in the door to explore your menu.

That’s why hosting a soft opening could be an excellent option for your restaurant. Having a limited invite list will allow a smaller event to try menu items and drinks to see how the first experience will go, kind of like a showcase test run.

While still facing COVID-19, restaurants around the country are preparing to reopen and applying a soft opening approach to control capacity and health safety concerns. This way, your customers feel more comfortable dining inside.

A grand opening occurs on the actual day your restaurant opens to the public. Still, the soft opening will be the beta test before the official start. This is beneficial for you and your staff to ensure they have everything they need to be successful. Allowing guests to tell their friends and social media followers about their look inside your new restaurant before opening will get people excited for when you open.

Here are the steps to have a soft opening and do it the right way.

Decide on the Menu

The soft opening might be more obtainable if you consider offering select menu items to try. There’s less preparation to worry about when bringing items to the tables on a busy opening. There are a few factors to consider when creating your menu. Spotlighting dishes from the menu showcases the dishes you think are perfectly ready for review. Releasing a beta-style menu is a great way to improve some kinks you may want to work on. Displaying only a few items on the menu also lets your customers know more and return later to see updated additions to the full menu. You can host more than one soft opening event to feature different menu items you want to test.

If you don’t, go the select menu route, and your grand opening is sooner than later. Having the full menu option gives you the ability to get feedback on all of your dishes before opening your doors completely.

Serving your entire menu at a soft opening will give you excellent feedback, there are some disadvantages. You need to be fully prepared to host a full menu soft opening, meaning all aspects of your restaurant’s menu must be ready.

Create the invitation

The invitations you create for your soft opening should invite the guests to come and test how your restaurant runs. Depending on how extensive an invite list is, you can keep it casual or do something upscale. Choose something memorable and creative that will grab your guests’ attention. However you send the invite, make sure to include the date, time, address, menu pricing, RSVP date, and dress code if there is one.

Be sure to also consider timing and capacity. Seeing how many people you can handle is different depending on the capacity and staff. Get used to a natural flow, and break up your guests into other time spots.

Build the guest list

Inviting guests can have a substantial impact on your restaurant’s success. Inviting familiar faces and family and friends makes them much more forgiving for anything that may go wrong during your soft opening. Those people can give you constructive criticism and offer insight during your test run. Just remind your friends and family to be honest.

You can also build your guest list by contacting local business owners. Introducing yourself to local businesses can be a great way to introduce yourself to the community and build long-lasting relationships. Introducing your restaurant locally is a solid first impression for other business owners in the area. Building professional relationships with other community businesses is vital to your restaurant’s success.

Adding community leaders and influencers to the guest list could benefit your soft opening. Prominent local leaders and community influencers will give you lots of pull within the community and generate a positive word-of-mouth promotion for your restaurant. Positive reviews will be critical early on to build your restaurant’s reputation. Be prepared to impress these leaders and influencers so they can give you those positive reviews.

Feedback is essential

By gathering feedback from your soft opening guests, you can make the improvements that are needed for your opening to the public. Gather your feedback in writing and ask guests to fill out a questionnaire at the end of their dining experience. Drop a feedback card with your guests check that way. You know everyone got the chance to fill one out.

By fulfilling these steps, your soft opening is guaranteed to succeed.

Prepare a menu you think will fit perfectly with your soft opening wants and needs.
Evaluate how your seating arrangements and flow worked
See how your staff handled their knowledge of the menu and how they work together.
Get the word out by having the local community there.
Implement feedback and tweak anything that may need improvements.

There are so many benefits to doing a soft opening, and it can give you the confidence boost your restaurant needs. Trust us; you’re going to want to take these steps and do it the right way. By doing so, you will have an advantage that will set you up for success first thing. You can attract new customers for your grand opening by downloading the ChowEasy App. Use it as another tool for your soft opening and grand opening launch to connect with local customers and restaurants.

Social media, health trends, and social responsibility are among a few things that millennials value in a restaurant

According to Forbes, “millennials have over $200 billion in buying power and will make up 75% of the workforce by 2025.” This means that millennials are an important target for restaurants and learning how to reach them will be crucial. So how do you attract millennials to your restaurant? With endless dining options available at the fingertips, you need to stand out but also align with their values. Keep reading to learn 7 things you can do to keep them coming back!

Use High Quality Ingredients

Appeal to the health conscious generation by using high quality ingredients

Studies have shown that Millennials are willing to fork over more money for high quality food. Since healthy eating is a trend more than ever before, be sure to use wholesome ingredients for everything. These include organic vegetables and meats that are free of hormones/anti-biotics. It would also help to emphasize phrases like “sourced locally” and “non-GMO” in the menu.

Boost Social Media Presence

Stay engaged and present in your millennial guests’ lives through social media

Since Millenials and Gen Z are tuned into the world of social media, grab their attention there. Your internet presence speaks volumes to these generations. Promote your restaurant and menu in engaging ways like posting a question or a raffle for a free giveaway. Also leave trails in your restaurant that lead to your social media. A couple ideas include inserting hashtags or your social media handle in menus or cups. Finally, update your directory listings and ask guests for 5-star reviews on Yelp and TripAdvisor.

Prep Food For The Gram

Posting food photos on social media is still a trend and shows no signs of dying

You’ve seen it. Pictures of food being posted by the millions. Food pictures are hot content for Instagram and Facebook feeds so why not use this in your favor? First, you’ll want to make sure the presentation of your dishes are worthy of a photo. Then, take a handful of snapshots yourself and experiment with various lighting edits and filters. Don’t be afraid to spend significant time on these. The photo you select needs to be captivating enough to stop people from scrolling. And you have lots of competition.

Build a Brand and Tell a Story

Fatt Matt’s reinforces their brand through merch items and even their very own BBQ sauce

Your restaurant is a brand and should have a compelling story. Make sure your social media, theme colors, and logo all reinforce the story of your brand. Millennials love their brands and aren’t afraid to endorse them through purchased merchandise. Make T-shirts, stickers, and other merchandise to make them a part of the story. You can somewhat easily attract millennials to your restaurant but a cool story will keep them.

Host An Experience

Create an experience to keep them coming back for more

To keep millennials coming back, you have to transcend beyond just providing a great meal. You have to provide an experience. It’s been shown that millennials prefer to live for new and unique experiences. This priority extends to eating out which you can thank the wave of pop-ups, food trucks, and food festivals for. If you don’t know where to start, just put some heart and soul in the atmosphere. You can use ambiance, art displays, music and aesthetic interior design to help create an experience. Additionally, you can keep them coming back through game nights, live music, art shows, and open mic nights. When in comes down to it, you want to envelop them in an immersive world they can’t to return to.

Have A Unique Menu

Millennials like taking risks with bizarre novelty menu items like the donut burger from “Sublime Donut Burger” in Atlanta

As mentioned in the paragraph before, Millennials live for experiences. This means that novel menu items will go a long way with this generation. This generation is the most diverse and open to new cultural cuisines. With that being said, offer something fusion and even quirky. To top it off, give your dishes distinct names that’ll catch their attention. You don’t want to only offer what millions of restaurants can. For instance, offering only pizza in a market where you can get pizza anywhere. This is why many restaurant chains are closing.

Be Socially Responsible

Millennials intentionally endorse restaurants that aim to protect the environment and support social causes

Being a restaurant that demonstrates corporate responsibility will go a long way. With the accessibility of information through the internet, any news of unethical or controversial actions can be found. Studies show that millennials would rather support businesses that do good and have no hesitancy to boycott. Due to this, establishing a good online reputation and supporting a good cause would be key for longevity. To start, you can make it known that you use biodegradable wear and consistency recycle. “Millennials don’t mind spending more money on things that are good for the planet.”

Take Your Restaurant To The Next Level

Going through the list, it can seem like a demanding task to attract millennials to your restaurant. Though it takes a lot to catch the attention of this generation, your restaurant will improve in many ways. Have fun with it while you become more than just a restaurant, but a brand!