For the past year we have heard about the inflation impact on restaurants with rising food prices and product supply issues. the story has not changed much but a new element has emerged, rising gas prices!
Prices have gone up for the average consumer. Purchasing data at restaurants shows a traffic decline of 3% vs the previous month which was also a decline. On a positive note, sales revenue has increased largely due to rising retail prices on menu items.
So what is the strategy moving forward? Looking forward into the fall months we need consider what the economy will look like. Will consumers have tapped out their savings with vacations? What will prices be like at the supermarket? Will they cook at home or order out for dinner? Will they have money to spend?
My bet is online ordering will rise again. Do you have a plan to offer value meals or family dinners? Time to make a plan.