Dynamic pricing a divisive subject at National Restaurant Show
OPERATIONS
10 ways restaurants can cut costs Highlights from the panel session “30 Ways to Cut Costs in 45 minutes,”
BY RON RUGGLESS
Count key products daily. “This is one of the most ba- sic fundamental controls our industry,” said Jim Laube, founder of RestaurantOwner.com. “Ten to 15 products in most restaurants makes up 60%, 70%, maybe 80% of their food costs.” Calculate core costs often. Food, beverage and paper costs should be calculated weekly, Laube said. Make inventory more efficient. Laube noted that in- ventory count sheets should be in the same order that products are on the shelf. Carefully review invoices before signing. Make sure quality, quantity, weights and prices match what was ne- gotiated. Cancel subscriptions. Juan Martinez, owner of the five- unit fast-casual Don Juan Mex Grill, said he has saved $3,000 a month by getting rid of services that “should have been cancelled a long time ago.” Keep employees who take out trash out of storage areas. “Putting a box of product in the trash and then re- trieving it later from the dumpster is a popular means of theft,” Laube said. Periodically inspect dish room trash. “It’s an aware- ness issue,” Laube said, citing one operator who has low- ered his utensil replacement costs and even offered finan - cial incentives to staff who keep reusables out of the trash. Maintain at least a third of your team as part-time employees . Martinez said he keeps about half of the staff members at his five restaurants as part-time employees. Pre-portion products prior to production. “Some of the reasons for doing that are, obviously, quality, consis- tency and cost control and also speed and ticket times,” Martinez said. Challenge yourself and others. Laube reminded oper- ators to use the most powerful words in business: “Is that the best you can do?”
1.
2.
3.
And at least some restaurants that have taken the plunge have seen positive results. Three-unit Cali BBQ is testing dynamic pricing from Juicer at one restaurant to shift the price of its $15 pulled pork sand- wich up or down by $3, depending on demand. The move is generating about $1,300 in extra revenue every month, said owner Shawn Walchef. “The problem in the media is surge pricing,” which connotes dras- tic price increases when demand peaks, he said. “The reality is incre- mental pricing, up and down.” So far, Cali BBQ hasn’t gotten any pushback from customers on its price fluctuations, he said. Douglass understands why restaurants are hesitant to touch such a hot-button issue. But he said it’s only a matter of time before dy- namic pricing becomes common- place in the industry. “It will happen because it needs to for the business to succeed,” he said. As he spoke, he was standing feet from a life-size cardboard cutout of himself holding a sign that said “Wendy’s is woke, dynamic pricing is the future. Let’s debate.” As of Sunday afternoon, no one had taken him up on it. “They’re all scared,” he said.
4.
5.
6.
7.
8.
9.
10.
38
National Restaurant Association Show 2024
Powered by FlippingBook