You need to do more than just put your prices up!

How are you tackling the impacts of inflation on your business?

For many business owners, this is a new problem that they haven’t encountered before.

Regardless of if you are a numbers person or not you will have noticed your costs have and continue to increase. For many people this creates a sense of discomfort as they also harbour an unease when it comes to putting up their prices, not knowing how your customers will react.

If you are delivering a great experience, your customers will want you to be successful and to be there when they want to come next time.  So be brave and put your prices up!

That will not be enough as this will carry on happening so our approach needs to be wholistic.  The two other things you must do:

  1. Continually improve your control- challenge your purchasing biases, constantly check your portion sizes, change some of your menu items to retain a range of prices and increase your management attention on your cost of goods, labour cost and gross profit. You are dealing with a dynamic environment with some prices changing just about every time you order and this can be challenging. It is easy to change prices by taking a menu item off and replacing it with a different dish that you can charge the correct amount for. This approach doesn’t work for your evergreen must-have items like your signature dishes and staples like coffees, fries etc. so they need to still be worth what you are charging.
  2. Then you must also increase your attention to what your customers experience and continually improve it in some way.

We have been through this cycle before and those of you that are able to learn to operate better will have better businesses.

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