A third of restaurant operators are concerned about the future. It’s easy to see why. Half of foodservice companies are losing money or breaking even. Restaurants visits continue to trend downward and while total spending is on track to be 10% higher than 2022 that increase has been more than consumed by rapidly rising costs. Bankruptcies in the first half of the year rose by about 50 per cent compared to the same period last year. An industry that has always had tight margins is struggling to find any profit at all.
We’ve collated potential solutions from a number of sources. Here are some areas that may offer some relief.
Refining Menus - Look at menu options with an eye to reduce costs by speeding up and simplifying the newly vital delivery orders, cutting back the demands on the kitchen in this tight labour market, eliminating high price ingredients, and reducing food waste. You may be able to continue a commitment to quality and choice while reducing costs.
Delivery Services - They take a big chunk off the top of the revenue they generate but they may still be worth the effort. It’s harder to generate a profit with these sales, but it helps pay for your kitchen staff and your utilities. The additional revenue can help you hold onto hard to replace staff and offset fixed costs, and that can be enough to get you through slow periods and let you fight another day.
Technology - Restaurants Canada tells us that restaurateurs believe that investing in labour-saving tech can help with staff costs but that the cost of implementation can be a barrier. Look for technology that streamlines your day to day activities without adding additional administration or management. Low set-up costs and ease of use are key to adopting new tech that reduces staff overhead.
Sources
- Restaurants Canada - Challenges shaping the industry
- Restaurants Canada - Profits remain elusive
- Restaurants Canada - Half of owners are pessimistic
- Globe & Mail - Restaurants struggling
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Nov 27