Do you explain a price increase?

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tmiles
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2018/10/02 12:33:54 (permalink)

Do you explain a price increase?

An excellent, mid priced, long established, restaurant raised prices a few months ago. They have a little red sign on the menu saying that salad is no longer included (entree prices remain the same) due to "high food costs". Each time we go in the server brings it to our attention. Salad is now $2, with a meal.
 
First, I don't think that overall food costs are up that much. Maybe "delivered" food costs are up though. A major restaurant supplier has been advertising for drivers at "a new higher pay scale" with a sign on bonus.
 
Second, IMO,labor is the biggest cost driver in many lines of business today. Food people have been under paid for years, and I personally know of 2 former restaurant pros who have moved on to higher paying work.
 
I'm in business, but not the restaurant biz. IMO higher prices are a fact of life, especially in a low margin biz. I'd suggest that restaurants raise prices, as needed, and don't make excuses.
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    1bbqboy
    Sirloin
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    Re: Do you explain a price increase? 2018/10/03 13:10:16 (permalink)
    PT Barnum is the new normal.
    Screw anyone and anything that one can get away with.
    #2
    1bbqboy
    Sirloin
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    Re: Do you explain a price increase? 2018/10/03 13:10:23 (permalink)
    PT Barnum is the new normal.
    Screw anyone and anything that one can get away with.
    #3
    MetroplexJim
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    Re: Do you explain a price increase? 2018/10/03 15:55:48 (permalink)
    tmiles, as I know you to be a sincere, thoughtful gentleman …
     
    No "explanation" is necessary.  Frankly, I do not know why they handled this, in a public relations sense, so poorly.  There is absolutely no reason to focus the attention of a loyal clientele on a small price increase.
     
    The restauranteur is voluntarily in business, his clientele patronizes his establishment voluntarily.  Either he provides value for the dollar or he does not.  It's just that simple, no explanations or "apologies" necessary.  Nor do his clientele want any; they just want to eat.  And have good value for their dollar.
     
    Resisting a trip into the weeds regarding the miniscule COGS of a salad, I will simply assert that any decision a restauranteur takes on pricing will soon be reflected in trending gross revenue.  Alone, that will tell a tale of wisdom or folly.
    post edited by MetroplexJim - 2018/10/04 09:30:16
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