Snappy’s Post

Overall inflation stats may be lower but #hospitality is still feeling the effects of increasing food costs. 92% of businesses reported food costs were higher during the first quarter of 2024 compared with first quarter of 2023 according to a new poll by Ohio Restaurant & Hospitality Alliance. Is your hospitality operation seeing the same? #hospitalitytech #restauranttech

The restaurant industry in Canada has experienced significant changes over the past decade, marked by both growth and adversity. As of 2024, the industry is on a path to recovery, with the number of restaurants estimated to be approximately 93,000. https://lnkd.in/gf_ki3at #RestaurantSuccess, #IndustryInsightss, #BoostYourBusiness, #foodservice, #restaurantgrowth, #hospitalityindustry, #RestaurantManagement

Inflation is continuing to bite Canada’s restaurant industry, as sales have dipped in March across the country and consumers are facing higher menu prices. As a result, these inflationary pressures are changing customer habits in a frugal market. There’s still a lot of pressure on restauranteurs post-covid with debt, and rising costs including food, utilities, wages, rent and insurance. Hopefully, the reduction of interest rates will result in increased consumer confidence and the desire to gather and celebrate during the summer months will see stronger performance as the year progresses.

They expect a net loss at #BurgerKing operator Restaurant Brands Asia to widen sequentially, also marking at least a 12th consecutive quarterly loss. Read more at: https://lnkd.in/g42UwaEs

https://lnkd.in/eDpfFssU Consumer prices increased by 2.6% in October compared to the previous year, slightly up from September’s 2.4% rate, indicating slow progress in combating inflation. However, dining out costs are stabilizing, with restaurant price hikes easing as operators grow more optimistic about the economic outlook for 2024.

A two-month GST holiday on restaurant meals could mean up to a 5% boost in sales for the average restaurant -- a boost of close to $1B in additional revenue to restaurants across Canada. This is a crucial step toward supporting an industry that’s been hit hard by rising costs and reduced foot traffic. Let’s make the most of this opportunity to dine out, support local, and help restaurants get back on track. For more information and details on the GST holiday, visit: https://bit.ly/4eHJFti

Restaurant Groups’ Delivery Sales Rise 8% In February As Takeaways Drop Again Britain’s leading managed restaurant groups achieved year-on-year sales growth of 8% in delivery sales in February 2024, CGA by NIQ’s new Hospitality at Home Tracker reveals. The inflation-beating increase means groups have generated growth in at-home sales for nine months in a row. However, the value of takeaway and click-and-collect sales dropped by 4% from February 2023. Combined, delivery and takeaway sales were 5% ahead—an improvement on the figures of 4% in January and 1% in December 2023. Consumers’ switch from takeaways to the convenience of ordering-in means deliveries accounted for 11% of restaurant groups’ sales in February, while takeaways and click and collect orders were worth 4%. Eat-in sales attracted 85% of all spending. Karl Chessell, CGA by NIQ’s director – hospitality operators and food, EMEA said: “It’s encouraging to see that restaurants’ at-home sales growth is keeping pace with inflation in early 2024. The shift from takeaways to deliveries continues apace, and we can expect further migration as more and more people welcome the convenience of ordering platforms. However, with discretionary spending still under pressure for many consumers, restaurants will have to stay laser-focused on the quality and value of their delivery operations to sustain sales and share.” Read More:

Service charge is one of the top trending restaurant arguments all of us face. As an introduction, service charges are the fees levied to pay for the services associated with the purchase of a particular product or service. In the case of restaurants, it is a charge levied as a result of the food and serving\services provided to consumers. We notice that restaurants levy this charge in the food bill and when asked to remove put forth arguments stating that it is a restaurant policy to levy the same.  In order to deal with this practice of forcefully imposing service charges, the Central Consumer Protection Authority (hereinafter the “CCPA” ) in 2022, issued the Guidelines to prevent Unfair Trade Practices and Protection of Consumer Interest with regard to levy of Service Charge in Hotels and Restaurants. As per the said guidelines, paying service charge is completely a consumer discretion and no hotel/restaurant can compel the consumer to pay the same by adding it to the food bill. The reasoning behind this was given by the Authority stating that the restaurant has the liberty to charge on the food and beverages they serve and any charge on the service provided is inclusive of it. It is crucial for all consumers to note that a service charge is completely discretionary. In case any restaurant charges the same in your food bill, you have a right to removal and non-payment of the same as forcing any consumer to pay for service charges comes under the ambit of unfair trade practices. The first instance where restaurants challenged these guidelines was in the case of National Restaurant Association of India v. Union of India 2022, SCC OnLine Del 2172 before the Hon’ble Delhi High Court.  As of now, the matter regarding levy of charges by mentioning the same in the menu cards is sub judice. It is pertinent for consumers to take note of the same before ordering in a restaurant. However, direct levy of the charges in the food bill is prohibited and if any restaurant is compelling a consumer to pay the same, the consumers can lodge their grievance on the official website of Ministry of Consumer Affairs https://lnkd.in/dzds5rda or can call the National Consumer Helpline via Toll Free No. 1800-11-4000 or short code 1915 to seek any information or advice or grievance redressal. An SMS can also be sent to +918800001915 mentioning your name and city to get a call back. The Grievance is then forwarded to the concerned company or organization and a period of 45 days is provided for a reply. In absence of response, litigation can be initiated by the consumer. 

Are you one of those restaurants that is looking to raise prices? Imagine the amount of work it’s going to take to come up with your changes and then implement them? Imagine the shock of your customers as everything on the menu increases in price? What if there was a way to make menu changes simple and easy? What if you only had to change prices on a couple things instead of having your customers accuse you of price gouging? Oh, did I say that out loud? Well now that it’s out, you better check out Stellar Menus. Managing your menu can be easier. Let us show you how.

Interesting article in Restaurant Business by Jonathan Maze Recent inflation data that offers some hope for the restaurant industry. Here are some key takeaways include: - Wage growth is catching up to inflation implying more disposable income and encouraging them to dine out more - Grocery price increases surpassed restaurant price increases in September, signaling a narrowing of the gap between eating at home and dining out - Despite these positive signs, challenges remain as lower-income consumers are still struggling financially   By working closely with food manufacturers, restaurant operators can leverage innovation and efficiency to navigate the evolving economic landscape and cater to consumer demands for value and quality: - Innovate with Value-Driven Menu Options: Even with easing inflation, consumers remain price-conscious. Partnering with food manufacturers to develop creative, cost-effective dishes can attract budget-minded customers without sacrificing quality or profit margins - Focus on Efficiency and Consistency: Streamlining kitchen operations and using prepped ingredients from manufacturers can help manage labor costs and ensure consistent food quality and safety - Target Marketing Efforts: As lower-income consumers might still be hesitant to spend, consider targeted promotions and value-oriented messaging - Monitor Consumer Sentiment: Stay informed about consumer spending habits and economic trends to adapt strategies and menus accordingly