​High food costs continue to impact restaurant operators’ bottom lines. Even though overall inflation has been easing and foods purchased in grocery stores have been costing less than those offered at restaurants, restaurant costs (and many operator expenses) remain high. As a result, consumers may be giving menu prices some extra scrutiny right now — or skipping restaurant meals altogether. In fact, a recent report from AlixPartners found that instead of trading down on restaurant food, consumers have been cutting it out in an effort to protect their budgets. So it’s important to ensure you’re reaping the most benefit from the items you offer. There are a number of actions you can take. You may already be reducing portions and shrinking your overall menu size, and while this is helpful for waste reduction and cost savings, it also leaves room for guests to add to their dish. Play on their desire for customization by offering a selection of ingredient add-ons and side dishes that guests can add to their meal that incrementally increase the price of a dish without giving people sticker shock. Make the most of the sales you get by engineering your menu so its layout naturally leads the guest’s eye to items that generate the most profit for you (and cost your menu so you are well aware of what those menu items are). Finally, lean on other streams of income. Retail items and licensing opportunities may help you generate sales in the background and allow you to smooth out dips in your sales of menu items.

Let’s not sugarcoat it: Industries that demand long working hours and high quality from their employees can struggle with punishing cultures – and the restaurant industry is no exception. But in recent years, social justice movements have changed what kind of behavior employees will tolerate in their workplaces. Younger employees, often prime candidates for restaurant roles, are especially willing to demand that their employers provide a respectful culture – or they will leave for different jobs. At a time when employees have their choice of employers, it’s in the best interest of restaurants to take positive action with regard to culture – and not just because it’s the right thing to do. According to Gartner research cited in a report from US Foods, 75 percent of companies with inclusive cultures exceed their financial goals. Deloitte research found that 78 percent of workers believe that diversity and inclusion offer a competitive advantage. On the surface, it sounds like a no-brainer: Employees who feel included are happier in their jobs. They are more apt to reflect that positivity onto guests and stay in their roles for longer periods. Restaurants who employ people with diverse backgrounds and views are better able to understand the increasingly diverse population of guests they serve, which helps them forge better connections with (and sales from) their guests. But achieving a more sensitive culture requires a business to develop and follow clear policies about diversity and inclusion, as well as to commit to infusing the business with more inclusive values at every level. The US Foods report advises that operators start by ensuring they are complying with state and federal obligations to provide a workplace that’s free from harassment and hostility. Then consider how well the diversity of your staff relates to your guests and reflects their diversity. Ensure your policies are in writing and communicated through training so that people can be (and are) held accountable for poor behavior. Finally, conduct regular sensitivity checks to ensure you’re not missing tensions lurking under the surface. Give staff a safe space to voice concerns and then follow up to address them. You will set yourself on a course to build employee loyalty.

​At the time of this writing, it had just been announced that the U.S. inflation rate had dropped to 3 percent in June, a two-year low. It’s long-awaited good news for restaurant operators. To be sure, waning inflation could boost restaurant business indirectly because consumers are more optimistic about spending and less concerned about the prospects of recession. However, the news isn’t without some potential challenges. Restaurants continue to hike their prices faster than grocery stores, which a recent Restaurant Business report predicts could push lower-income consumers to shift their spending. Restaurants seem to be moving toward more moderate price increases, but it will continue to be important for operators to conduct ongoing analyses of their menu pricing, manage their inventory closely to stay ahead of supply chain snags, have back-up plans in place in case key ingredients aren’t available, and to price menu items in line with those trends. If you need assistance in managing these changes – or in finding ways to bring some stability to your costs and continue to offer value to your guests in a shifting economy – contact Team Four/Value Four for help.

Well before restaurants ever had employee referral programs in place, talented staff members have been powerful sources of other valuable job candidates. So why not put some systems around this resource to ensure you are doing all you can to encourage staff to refer people to jobs with your restaurant – and then make it worth their while for them all to stay employed with you? You stand a better chance of creating a workforce of people who enjoy working with each other and limit the amount of turnover you have. Of course, there can be drawbacks to hiring employee referrals – potentially less diversity of backgrounds and skills, for example. To get what you desire from your program, Toast advises that you focus your program on a goal: Perhaps that’s decreasing your job ad spending by 40 percent or hiring people who are likely to stick around for more than a year. Be clear about who you’re looking for – share your job description and specific desired qualities of new staff members. If you hire a person referred to you by a current employee, tie rewards for both people to the new hire’s longevity. Perhaps there’s a reward after 100 days or 150 days – whatever amount of time you feel is short enough to feel attainable but also long enough for the new staffer to adjust to the job, learn your culture and make some contributions. You can also open your program up to the general public – maybe you have a valued customer who knows your brand so well that they would be a strong asset to you on staff. Finally, make it easy for people to not only refer a strong candidate but to be rewarded for the person’s hire. Use social media, a form on your website, and your restaurant’s tech tools to accept and track employee referrals and automatically issue rewards after the introductory period. Cash and gift cards are always good incentives for employee referrers, but rewards could be as simple as offering shift preferences.