How Restaurants Can Adapt and Thrive Amidst What Might Happen in 27 Days.

Jay Ashton, Canada's Restaurant Guy

The Canadian restaurant industry is bracing for the impact of new tariffs, adding to the financial pressures that operators are already facing. With food costs expected to rise, many restaurateurs are left wondering: How do we absorb these increases without pushing customers away?

The good news is that while we may not have control over tariffs, we do have control over how we respond. This is an opportunity for restaurants to fine-tune their menus, rethink their marketing, and optimize their operations to protect margins and keep customers engaged.

1. Adjust Your Menu Strategy Without Raising Prices

In Canada, where consumers are already feeling economic pressure, direct price increases could discourage customers. Instead of simply charging more, restaurants should refine their menus to protect margins in a more subtle, value-driven way.

How to Adjust Without Turning Customers Away:

• Feature Higher-Margin Items: Instead of increasing prices, encourage customers to choose dishes that naturally have better profitability through menu placement, staff recommendations, and strategic marketing.
• Bundle Smartly: Create meal bundles or prix fixe options that encourage larger orders while maintaining a perception of value. This helps increase overall check averages without making individual items feel more expensive.
• Menu Engineering for Profitability: Reduce or reposition low-margin items. Highlight seasonal dishes that use more affordable, local, or tariff-free ingredients. Offer add-ons and upgrades rather than full price increases.
• Adjust Portions Thoughtfully: A slight shift in portion sizes without affecting the perceived value can help protect food costs without customers noticing a difference.
• Be Transparent Where Necessary: If significant adjustments are needed, consider a brief customer message explaining why. A simple "We’re committed to maintaining quality while adapting to market changes" reassures guests without apologizing.

By shifting how and what customers buy, rather than simply charging more, restaurants can navigate tariffs without alienating their customer base.

2. Focus on Bringing Customers Back More Often

Rather than chasing new customers, focus on increasing repeat visits from your existing base. Small increases in visit frequency can have a major impact on revenue.

Simple Tactics to Increase Frequency:

• Timely, Direct Email & SMS Marketing: Instead of generic promotions, send personalized messages like: "Here are three great reasons to visit this weekend!" A well-timed email can remind customers to choose you over another option.
• Loyalty Without the Complexity: Skip traditional point-based programs and offer "Come in five times, get a free appetizer or dessert." Simple, tangible, and effective.
• Limited-Time Specials & Experiences: Create exclusive events, chef’s specials, or themed nights that make people want to return sooner rather than later.

Customers are not choosing restaurants solely based on price—they’re choosing experiences and places they love. Make sure your restaurant stays top-of-mind and encourages repeat visits.

3. Unlock Predictable Revenue with B2B Strategies

Many restaurants only focus on individual customer transactions (B2C), but the most stable revenue stream comes from business-to-business (B2B) opportunities like catering, corporate meals, and private events.

How to Create a Steady Revenue Flow:

• Corporate Catering & Standing Orders: Reach out to law firms, offices, and corporate clients nearby and offer a standing catering order (e.g., every Tuesday & Thursday).Provide lunch packages that are easy to order and repeat weekly.
• Private Dining & Small Events: Offer pre-set menus for corporate dinners, networking events, and small private celebrations. Position your space as a go-to venue for team lunches, birthday parties, or milestone events.
• Meal Subscription Services: Some restaurants are experimenting with weekly meal plans or meal prep services to provide consistent orders beyond traditional dining.

Focusing on repeat, bulk orders can provide a much-needed buffer against rising costs.

4. Improve Online Presence for Better Conversion

Many restaurants pour energy into social media, but neglect their highest-converting digital assets—Google, Yelp, and their own websites. Social media creates awareness, but Google and your website are where customers actually decide to visit.

Where to Focus for Better Results:

• Google & Yelp Optimization: Keep menus, hours, and pricing updated. Ensure high-quality photos showcase your best dishes.
• Website Focused on Action: Remove unnecessary content. The primary focus should be online reservations, catering inquiries, or placing an order.
• Make It Easy for Customers to Book, Order, or Call You: A well-optimized website turns interest into visits—make sure yours is doing its job.

A polished online presence ensures that when customers are ready to dine out, they choose you over competitors.

5. Reduce Waste & Optimize Operations

The easiest way to offset rising costs is by running leaner and smarter. Restaurants often overlook small inefficiencies that add up.

Where You Can Cut Costs Without Cutting Quality:

• Streamline Your Menu: Use sales reports to eliminate items that don’t sell well. A smaller, well-optimized menu reduces waste and improves kitchen efficiency.
• Optimize Labor Hours & Scheduling: Schedule based on real data, not habits. Cross-train employees so that you don’t need extra staff on slow shifts.
• Negotiate Better Deals: Work with local suppliers to find tariff-free ingredients where possible. Consider alternative ingredients or bulk purchasing strategies to reduce costs.

Many small adjustments can save thousands over the course of the year.

6. Focus on Profitability, Not Just More Customers

Many restaurants think “We just need more customers.” But more foot traffic does not automatically mean more profit. Instead, focus on making each visit more profitable.

How to Improve Profitability Without Raising Prices:

• Encourage Add-Ons & Upgrades: Small changes like offering premium toppings, side upgrades, or drink pairings increase revenue without making customers feel like they’re spending more.
• Ensure Pricing Reflects Market Positioning: Compare not just to other restaurants, but also to alternative dining choices (e.g., fast-casual, meal kits, or takeout options).
• Enhance Perceived Value: Improve presentation, portioning, and service to justify existing prices rather than raising them.

The goal is not just to survive, but to optimize your operation for long-term profitability.

Final Thoughts: A Smarter, Stronger Industry

Tariffs are a challenge, but they also provide an opportunity to rethink business strategies, increase efficiency, and focus on customer retention.

Instead of reacting with fear, use this moment to:

? Refine your menu for better margins.

? Focus on getting customers to visit more often.

? Tap into B2B revenue streams for stability.

? Strengthen your online presence to drive more bookings.

? Reduce waste and streamline operations.

? Enhance profitability per customer visit.

The restaurants that adapt today will thrive tomorrow.

Tariffs may increase costs, but smart strategies will keep your business strong