10 Tips for Keeping Your Restaurant Afloat During Inflation

• Author: Jeff Christiansen
• Posted: 2024-01-23

Rising inflation can be a major challenge for any business, including restaurants.

As costs rise and consumers become more cautious about spending.

Therefore, restaurants must get creative to remain successful.

The investors must strategize on how to keep their restaurants afloat and competitive.

Balancing these elements can be overwhelming, but restaurants can survive and thrive amid inflation with a few well-informed strategies, including:

 

1. Streamline Your Operating Costs

Consider and monitor every expense carefully.

Analyze your menu for items that you can remove or substitute.

Reduce waste by using supplies efficiently and tracking your inventory to avoid overstocking.

Consider lowering labor costs by adjusting weekly shifts and hiring as needed.

 

2. Leverage Technology for Efficiency and Cost Savings

Take advantage of technology to streamline processes, improve communication, and reduce costs.

Invest in a POS system to better manage orders and inventory.

Use mobile apps and online platforms to keep customers informed and simplify processes such as reservations, menus, payments, and feedback.

 

3. Actively Seek Out New Customers

Use targeted campaigns to reach potential customers who may not know your restaurant.

Utilize email and social media platforms to stay connected with existing customers, offer referral incentives, and encourage them to leave online reviews.

Alternatively, ask for referrals from other local businesses to broaden your reach.

 

4. Invest in Quality Ingredients & Supplies

Investing in high-quality ingredients and supplies is a wise decision, even when times are tough.

Quality food and ingredients will keep customers returning.

For example, using fresh produce will provide a better flavor, and investing in durable supplies such as pots and pans can help save money for other items.

 

5. Consider Offering Delivery Services

Consider collaborating with a third-party delivery service or setting up your system, as many options are available.

Supplement this strategy with online marketing, where you pick orders and deliver them to customers who live around the premises.

Alternatively, let the employees look for orders and deliver them on demand.

 

6. Focus on Brand Strengthening & Marketing Strategies

A strong brand and effective marketing strategies are essential for ensuring a stable flow of customers.

Invest in logo design, website development, and signage that clearly communicate the essence of your restaurant to potential customers.

 

7. Offer Promotions & Discounts to Attract More Customers

Customers become more mindful of spending during tough times, so consider offering promotions and discounts to attract more people.

Try happy hour specials, coupons, or a loyalty program.

For example, offer a 10% discount on the total bill of customers who dine with you three times or more.

Alternatively, provide a complimentary dessert or appetizer for customers who purchase two main meals.

 

8. Utilize Social Media Platforms for Free Advertising

Social media is an effective and free way to reach potential customers.

Publish information about new menu items, specials, and discounts on social media platforms to keep current customers informed and attract new ones.

Remember to respond to feedback regardless of whether they are negative or positive.

You may link all the messages to your restaurant's website and provide detailed service information.

 

9. Explore Alternate Revenue Sources, Such as Catering Services

Consider offering catering services to generate additional revenue by providing food for special events, corporate meetings, or conferences.

Additionally, establishing relationships with local businesses can create a steady flow of income.

For example, you can provide meal packages to businesses that offer them as perks to employees.

In most cases, catering services require minimal setup, and you can adjust the order size to reflect demand.

The beauty is that you can also use the same ingredients and techniques in your restaurant.

 

10. Adjust Your Menu to Keep Costs Low

It's important to adjust your menu regularly to keep costs low.

Analyze customer feedback and make changes to the menu as necessary, such as adding and removing items or modifying recipes.

Additionally, look for ways to reduce food waste, such as utilizing leftovers and prepping foods in bulk.

It'll help reduce costs while also helping to preserve the quality of your ingredients.

However, keep the customer in mind while making menu changes, as they will be more likely to return if their favorites are still available.

You may notify them on social media of the changes to keep them informed.

Also, stick banners, posters, and other promotional materials addressing future changes in the restaurant premises.



Inflation doesn't have to mean the end of success in your restaurant venture.

By streamlining costs, leveraging technology, marketing strategy, and investing in quality ingredients, restaurants can stay competitive in a challenging economic environment.

You may fail in implementing all these, but the ones you can introduce can give your restaurant the much-needed boost that will help it remain afloat.