Impact of Inflation on Restaurants

Dated: July 13 2022

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 Impact of Inflation on Restaurants

2021 was the comeback year for restaurants. But, 2022 is a different story. Inflation is at a 40-year high, and businesses and consumers are feeling it !!.
Restaurants are dealing with inflation in different ways. Some are scaling back services and portion sizes, some are changing to lower cost ingredients, and others are deleting low/no profit menu items. Most all though are increasing prices in some way to stay on top of rising costs.
Inflation is decreasing customers' disposable incomes. This is causing travel and dining declines. Put simply, guests are eating out LESS and ordering LESS, while selecting LOWER COST menu items. Families will be forced into staying home and cooking more.
One solution to this economic situation will be CUSTOMER INCENTIVES. Restaurateurs need to increase customer frequency without cutting their profits. Consumers are still willing to spend on good deals. We need to create VALUE for our guests!
There are upcoming big $$ pay dates on July 1, September 2, September 30, December 2 and December 30. These dates are when paychecks and benefit payments happen side by side.

Take advantage of this by timing VALUE offers during these dates when people are more likely to treat themselves by eating out. Be proactive. Keep the clients and the $$ coming in! Our entire industry needs to get out in front of this economic roller coaster and not wait for someone else to fix things. 

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Stephen Soriano

Virginia Realtor with Weichert Loudoun Commercial Advisors.Real Estate advisor to the restaurant and retail food & beverage industries.  Specializing in buying, selling, leasing, expansions &....

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