Page 31 - MENU Magazine - Sept/Oct 2017

FRONT OF HOUSE
WHAT TO DO ABOUT REVENUE
In a time of rising costs, if you help your guests to keep their restaurant occasions a ordable, they’ll choose you rst and more often.
Guests are not necessarily alienated by higher prices, they just come less often. The trap when this happens is that you still get great guest feedback, which can be misleading in terms of real success.
Thinking about ways to keep guest checks down is the opposite of what you might usually do, but it’s one way to keep guests happy. When your prices are rising, help them appreciate the value you provide:
• Make sure the prices guests notice rst, and prices on items they care about the most, are in line, visible and represent good value.
• Ifguestsreacttohigherprices,bepreparedtohelp them make choices they can a ord...instead of focus- ing on increasing revenue on this one visit.
• Workhardtokeepyourguestcountsup.Thiswillserve you well, because when you lose a guest or they come less often, you lose 40 cents of bottom line on every dollar lost in sales.
Help your guests keep their restaurant occasions a ord- able or they will go somewhere else. Consider changing your o erings to keep portions attractive, o ering com- pelling menu items with lower labour and food costs.
• Changewhatyouhighlighttoletgueststreatthem- selves if they want to, but also being sure to o er several a ordable menu choices.
• Consider your guests and their wallets when setting prices, thinking not only about the menu price, but also what the total check is, tax and tip included. Your servers will be happier if you keep your guest counts up at a reasonable tip percentage, instead of making a few extra dollars per guest on a lot fewer guests.
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The secrets
to managing
labour costs
How to react to likely increases
BY HUGH JOHNSTON
Labour costs look to be rising across the country. Ontario, Alberta and BC have already announced plans for a $15 minimum wage. Even for operators located in other provinces, costs may rise as your suppliers’ labour costs increase, and they pass it along to you. So, no matter which province you operate in, it’s a good time to step back and think about how to react to a likely increase in costs.
How can keep your pro ts healthy, and your customers happy?
Thinking creatively can help you weather the storm. Here are a few ways you can respond to higher wages without pushback from your customers.
SEPTEMBER / OCTOBER 2017 MENU 31