Restaurant prices have undergone a reality check in recent months and years. If, like the vast majority of operators, you have had to hike menu prices to keep pace with such stresses as inflation and rising staff compensation, your guests may scrutinize their spending a bit more – perhaps cutting back on visits or ordering less when they do. Or, they may visit you on occasions when they are apt to eat a bit less – like for an after-work snack and beverage with a friend or a pre-workout boost. But you can take some steps to manage the perception that you’re stretching guests’ budgets and also drive off-peak traffic by making your between-meal dining occasions feel more special. For example, you can double down on your value options – guests are still apt to respond to offers of combo meals, meal bundles and other items that make them feel like they are getting more for their dollar. Pour some creativity into your between-meal periods by offering some eye-catching hot and cold beverages that guests can customize with their own additions. It’s also important to get personal: New research from TouchBistro found that 64 percent of restaurant operators are sending personalized offers to guests, up from 55 percent last year. So even if you’re already sending personalized offers to your best guests, your offer may be one of several vying for their attention. Drill down on your guests’ habits and lifestyles to ensure you’re offering food and drink options they will want to make part of their day. While inflation has been weakening in relation to where it was in the middle of 2022, it’s still proving to be stubborn. Although economists are cautiously optimistic that things are headed in the right direction, restaurant operators are still likely seeing guests react to the challenges on their wallets. But their responses likely differ by generation, according to research from Technomic – and that may impact how operators decide to promote their menu and market to these in-demand guests. In a recent podcast for Restaurant Business, Technomic’s Lori Rakoczy said younger consumers in Gen Z aren’t looking to cut out restaurant dining altogether in response to higher prices. What they will do is choose less expensive menu items across their preferred restaurant segment or even their preferred restaurant itself, and they will comparison shop for their favorite foods in third-party ordering platforms, which make it easy to find a cheaper burger in town. Knowing your breaking point on price will continue to be important to attracting this crowd – including considering point-of-sale data in relation to costs and studying how that is impacting traffic, as well as tracking the competition to better understand how their prices compare. For this generation, elevating their experience is about convenience. That means doubling down on digitally driven methods of ordering and pickup processes and minimizing wait times – such as making it seamless for them to order ahead but eat their meal in your dining room, or otherwise leaning on your digital tools to ensure you can get food to these guests at the time they are expecting it. |
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April 2024
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