Mark Kuperman | FSR Magazine
Though raising prices from the start is tempting, try these more effective solutions instead
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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