Who Needs Who?!?!?

New Year. More Change. Lots of uncertainty. So, the question is Who Needs Who?

In Minnesota we have gone back to 50% dining capacity and I know many restaurants are keeping their patios open, just in case. It was a good day when we went back, but, will it continue to be? I was out on Friday at a local restaurant and it was pretty busy. Nice to see. I would say they were even above the 50%(whole different conversation). What will next Friday look like?

In speaking with neighbours, friends and colleagues, money is getting tight for many people. Everyone has been impacted by these rolling restrictions and it means disposable income, for many, has been disposed of. When dollars come it, it is being used to cover rent, mortgage, food, gas and utilities. Whatever is left is being held onto a little tighter than they used to. That's why when I see something like this, I need to suggest caution.

I went to get my haircut for the first time in a while(self cutting was starting to look weird). When I booked my appointment, I noticed that the price had gone up $6 over last time. Now, that may not sound like a lot of money and it's not like my hairdresser doesn't deserve it, assuming some goes to her. But, is this the right time to be increasing prices?

Any time I have increased prices in a restaurant, I have always seen tickets decrease. You factored this into your formula and tried to find that sweet spot around minimizing lost tickets with increased average ticket, ending in a positive number. I struggle with trying to do this right now. We need as many tickets as possible. Every ticket is a loyal Guest ordering from you. If you lose that order, it may go somewhere else.

Now, I think most of your Guests will understand why you are doing it. Sales are way down and you still have to pay to keep the lights on and the gas lit. But be careful with what you decide to do. If you need to, take only what you need. If you don't have to, hold off. Taking too big of an increase may force one of your loyal Guests to try someone else who hasn't increased their prices. Enough of those could turn into permanently lost business.

Every restaurant will have a different answer and be in a different place. You need to figure out where you are. But before you decide to increase prices, make sure you have checked that you have done everything you can to reduce your costs. Check your wastage, portioning, spoilage, ordering, scheduling, energy efficiency, etc.....

If you need help with this, Ameri-Can Hospitality consulting will be happy to help! Book an appointment through our website at www.a-chospitality.com.

Wishing you all a Safe, Happy, Healthy and Successful 2021!!