Latest News

These tips might make counteracting rising food prices a little easier

Robyn Black | Inapub

Keep your menu prices down with these tips

Floods in Spain, a country that provides 25 per cent of the UK’s vegetable imports, plus freezing weather across Southern Europe earlier in the year, and the uncertainty of Brexit are all pushing up food prices.

According to the latest figures released by CGA Prestige Foodservice Price Index, for example, food price inflation rose to 9.3 per cent in August, up by over 2 per cent on the previous month.

Sebastián Fernandez, chief research & development officer for Revenue Management Solutions, suggests licensees need to compensate for these higher costs, in a way that won’t drive customers away.

“After all, what’s the point of charging higher menu prices if fewer people are coming through your doors?” he says.

He offers these seven “well tested tactics” to help pub operators be ready to act quickly, as commodity costs change:

Read more →

What can bar operators do to counteract rising food prices?

Sebastián Fernández | Bar Magazine

Sebastian Fernandez

Sebastian Fernandez

Due to the fall in the pound since Brexit, bar operators are pulling back on expansion plans, and indeed may be forced to close outlets amid big rises in food and drink costs. According to the latest figures released by the CGA Prestige Foodservice Price Index, food price inflation rose to 9.3% in August, up by over 2% on the previous month.

If that wasn’t bad enough for operators, the rise in food costs is also combined with increased costs from the introduction last year of the national living wage for over-25s, in addition to rising business rates and mandatory pension contributions.

Additionally, southern Europe experienced some of their worst weather conditions in years. Floods lashed Spain which proved catastrophic for vegetable producers. Freezing conditions followed, hitting both Italy and Spain, with Spain seeing its largest snowfall in decades. As a result, it wasn’t possible to plant new crops, and the supply of yet more commodities was cut dramatically. Spain provides more than 25% of the UK’s vegetable imports.

We are in extraordinary times, with price fluctuations occurring regularly, forcing bar operators to keep a close eye on food prices in order to manage their own profits accordingly.

So how can bar operators deal with this unpredictability?

Read more →

How to respond when commodity prices rise

Sebastián Fernández | Restaurant Hospitality & Nation’s Restaurant News

Planning and a smart approach to menu strategy can mitigate the effects

Sebastian Fernandez

Sebastian Fernandez

Restaurant operators may see dramatic prices increases for certain products several times a year.

In 2015, the cost of eggs spiked due to avian flu, which reduced the count of table-egg-laying birds in the Midwest and Pacific Northwest. Then, in 2016, the cost of vanilla beans skyrocketed after a poor harvest in Madagascar, which produces most of the world’s supply.

The good news is that overall, food costs are forecast to rise at a relatively low rate this year. The U.S. Department of Agriculture said in June that it predicts retail food prices to increase 1 percent to 2 percent through 2018. Producer prices – the prices paid to domestic producers for their products – tend to track closely to retail prices.

So how can restaurant operators deal with this unpredictability?

Read more →

Generation Z Is Entering the Workforce: Are We Ready?

Christina Norton | Modern Restaurant Management

Christina Norton

Christina Norton

Just as restaurant managers figured out how to hire and retain Millennials, Generation Z (born after 1995) is looking for job opportunities. They have been described as being smarter than baby boomers and more ambitious than Millennials.

Generation Z employees look for a workplace that offers a strong company culture, stability and flexibility.
Given that Generation Z makes up a quarter of the U.S. population, and the average restaurant’s turnover rate is around 75 percent, making smart hiring decisions and managing turnover for this age group is business-critical for any restaurant’s future success.

Generation Z differs from the Millennial generation in numerous ways. They grew up in more uncertain financial, economic and environmental times and in a world in which the internet, social media and mobile technology surrounded them from day one. As a result, Generation Z has different priorities and is looking for employers that embrace their new technologies and big ideas at work.

Read more →

How to survive the rise in food prices in the bar and pub sector

Mark Kuperman | Bar Magazine

Mark Kuperman, chief operating officer of Revenue Management Solutions (RMS), provides 10 top tips to surviving the rise in food prices in the bar and pub sector

Mark Kuperman

Mark Kuperman

According to the latest index from the Office for National Statistics, food inflation in the UK hit its highest rate in three years in June. Food and non-alcoholic beverage prices were 2.3% higher than a year earlier, up from a rate of 2.1% in May. Therefore, pub and bar operators need to get wise to this major and growing expense without causing harm to their business.

Here are 10 top tips for pub and bar operators looking to reduce costs without impacting their bottom line:

Read more →

Tips To Operate With Living Wage In The British Hospitality Sector

Thomas Mielke, AETHOS Consulting Group | Hospitality Net

The UK finds itself in tumultuous times – uncertainty has become somewhat of the norm. Besides questions raised about Brexit implications – ranging from the devaluation of the Pound and the resulting increase in operating costs to securing continued access to qualified and motivated labour – additionally, hotel and restaurant operators have had to deal with new, recently introduced governmental policies and regulations further impacting the bottom line.

On this basis, I sat down with Mark Kuperman, Chief Operating Officer at Revenue Management Solutions (RMS). Mark and his team assist the hospitality industry by providing data-driven solutions to better manage revenues. RMS takes “the guess work out of crucial business decisions while optimizing gross profit and protecting brand value.” Mark and I spoke about how a significant number of employees in the UK received their biggest pay rise to date as the National Living Wage leapt to £7.50 an hour on April 6th, 2017. In line with Chancellor Philip Hammond’s Autumn Statement and Spring Budget announcement, more than two million employees over the age of 25 benefited from the 4% increase. Further to this, 21- to 24-year-olds received a rise of 10 pence per hour. This is in a bid to reach the government’s target of £9 per hour by 2020 for over 25s, with further demand to extend this increase to 21- to 24-year-olds. According to Tahola, an industry’s leading business analytics provider, this could result in operators facing an annual increase of £100,912.50. However, it’s not just labour costs that will hit operators; planned increases in employer pension contributions from 1% to 3% could elevate the cost to operators to more than £109,000 by 2020.

Read more →

What smaller chains should consider as they grow

Mark Kuperman | Restaurant Hospitality & Nation’s Restaurant News

Mine transactional data to understand customers and make smart decisions

Mark Kuperman

Mark Kuperman

If you are the leader of a smaller, rapidly growing restaurant, you have to make decisions every day that may have a long-term impact on the concept’s success.

Here are just a few examples: How do you grow without sacrificing profitability? How should you balance driving customer volume with building check size? And how will you know if the business is growing too fast?

The good news is that you don’t need to hire a consultant to answer every question. In many cases, following commonsense advice can guide you down the path to successful growth.

Read more →

Finding the sweet spot: What pricing strategy to use for distribution channels

Joel Davis | Fast Casual Magazine

Joel Davis

Joel Davis

For years, many restaurant operators have traditionally charged the same prices whether the menu is being used inside the restaurant, at the drive-through or for pickup, delivery or catering. But with the ever-increasing popularity of eating outside the restaurant via delivery or takeout tied to technology that makes adjusting menu prices so simple, a growing number of operators have realized there are opportunities for boosting profitability by varying their pricing among distribution channels.

So how do you increase prices for certain channels without negatively impacting customer traffic?

Before you think about what tactics to use, understand that different channels have different price elasticities, depending on customers’ so-called “need states” and the time and day the person is ordering.

Read more →

Fresh Brothers Pizza hires Revenue Management Solutions to consult on menu optimization and menu pricing strategies

PR Newswire

Relationship with Southern California company is a good example of how up-and-coming restaurants can benefit from RMS’ 20 years of industry leadership experience

Fresh Brothers Pizza, a fast-growing award-winning chain of Southern California quick-service restaurants, has hired Revenue Management Solutions (RMS) to provide consulting on menu pricing and other operational strategies. The goal: counteract rising costs and enhance profitability without hurting customer traffic and loyalty.

RMS will offer recommendations for menu pricing, menu engineering, analysis of the impact of pricing changes, and advice for ongoing business strategies, all designed to match Fresh Brothers’ pricing and offerings to consumer demand.

The Fresh Brothers relationship is an example of how up-and-coming restaurant chains can benefit from RMS’ 20 years of experience in demand-based pricing and menu optimization strategies. RMS works with a variety of restaurant clients, including five of the top 10 largest restaurant companies in the U.S.

Read more →

Restaurateur confusion grows as wage increase whirlwind blows through industry

S.A. Whitehead | Pizza Marketplace

Wage increases are happening across the U.S., with one of the next big hikes taking place Independence Day weekend in the restaurant mecca of Los Angeles. The minimum wage will jump from $10.50 to $12 for larger employers there on July 1. That’s a 14 percent increase in the set minimum with a jump to $15 hourly in the same city by 2020.

Like similar measures that have already taken effect in New York and the Pacific Northwest, this one in Southern California is hitting a lot of restaurateurs’ bottom lines. For one pizza QSR, based in L.A., it was enough of a threat that Fresh Brothers Pizza opted to hire outside help from Revenue Management Solutions to gain some insight into best next moves on menu pricing and other operational strategies, a news release said.

Like other brands in similar wage increase-affected areas, Fresh Brothers is also trying to figure out how to comply with the higher wage regulations, while also keeping guests as well as the company accountants happy and satisfied. It’s easy to see why they might need outside support in these shifting sands since each new wage increase activation or regulation triggers widespread misinformation and even some fear-mongering.

Read more →

Page 1 of 41234