Latest News

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.

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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:

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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.

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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.

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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.

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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.

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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.

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6 Tips to Help Restaurants Combat Higher Labor Costs

Mark Kuperman | FSR Magazine

Though raising prices from the start is tempting, try these more effective solutions instead

Mark Kuperman

Mark Kuperman

More and more municipalities around the U.S. are raising the minimum wage: In all, 19 states raised the minimum wage last year, with some of the largest increases in the states of Arizona, Washington, and Massachusetts. And more increases are on the way, as cities, counties, and states react to growing political pressure around the country.

How should full-service restaurant owner/operators deal with this situation? For starters, it’s important to pay your staff at a competitive rate, so you will retain highly motivated workers—a key to customer satisfaction and loyalty. Then, as you determine what those pay rates should look like, devise a plan for covering the related costs in a way that keeps your customers at the heart of everything you are doing and won’t drive them off to your competitors.

The temptation can be to raise menu prices across the board, thinking your customer demand is so strong that such a price increase won’t have an impact on your business. But a more well-thought-out approach comes from a deeper understanding of your customers and what they are willing to pay for each item.

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9 Ways to Maximize Menu Profitability

Dora Furman | Restaurant Hospitality & Nation’s Restaurant News

Mitigate cost pressures and avoid giving guests sticker shock with these tips

Dora Furman

Dora Furman

Too often, restaurant menus have catchy descriptions, gorgeous photos and an attractive layout, but are missing a key ingredient: They aren’t driving profitability.

Certainly, you should have a visually appealing menu that matches your restaurant’s brand. But beyond doing that well, it’s important to use the menu to your advantage financially.

By using key performance metrics, both financially (such as product mix and profitability) and operationally (such as speed of service, quality and SKU utilization), you can better understand what items are good candidates for menu features, deletion or product re-engineering. This approach also takes emotions out of the picture.

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4 Alternatives to Service Charges

Justin Pridon | Nation’s Restaurant News

Mitigate cost pressures and avoid giving guests sticker shock with these tips

Justin Pridon

Justin Pridon

Costs are rising for restaurant operators everywhere. The minimum wage is going up in many places. Commodity costs are always a worry. And for many prime locations, rental rates continue to climb.

What’s a restaurant owner to do? In some cities, especially on the West Coast, some restaurants are taking an extreme approach: experimenting with added service charges to offset costs.

Cost pressures on restaurant owners and operators are certainly intense, and many restaurants need to increase revenue as much as 5 percent to 6 percent this year just to keep profit margins intact.

But, here’s the million-dollar question: How can an operator compensate for these cost challenges without either raising menu prices or introducing a flat service fee? In short, how can you avoid giving your customers sticker shock?

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