Restaurant survival mode plans are important especially during hard economic times. Are you in restaurant survival mode? Do you have a survival plan to ensure that your restaurant working even in hard times? So much has changed in the world for everyone and the economy is still hurting businesses today whether you realize it or not. One of the biggest impacts on restaurants has been the dramatic increase in fuel costs. Additionally, hard economic times are here with us due to pandemic. The Coronavirus pandemic is taking huge toll on restaurant businesses.
Gas prices are still up almost as we talk, due to other existing economic considerations. For example, the world experiences occurrences that deepen the economic hardships. It only took a month or so after September 11 when the first invoices from major restaurant suppliers came in to restaurants with a gas surcharge added to the bottom of their invoices. The sustained high fuel costs then started trickling into the actual product costs. To top off the increased costs of goods sold there was the squeeze on the customers who were shelling out more bucks to keep their family functioning, so they had to cut back to, on what? Why entertainment of course. This left many restaurants fearful of passing their additional costs to the customers, so they ate it.
Survival Mode Plans for Inflation
You need a survival mode plan for inflation and tentative price fluctuations. Certainly gas prices flattened off, then retreated some for a while, but nowhere did you find the reduction on product cost coming back your way on the invoices. Prices are quite stretchy when especially they are going up, but certainly don’t stretch much on the down side. So at the moment with an additional round of increasing fuel prices what is an eatery to do? You already have the price points that work for you covered. Will your patrons stay with you as you have to increase those price points or will they go to other places that are more in line with their threshold?
Good hoteliers are equipped for restaurant survival mode plans and you should too. In this environment a restaurant has to be prepared to act, and have a solid plan. Are there other economic hardship events in the offing? God, I pray not, but there sure is a possibility. Will another pandemic or hurricane interrupt oil refineries in the Gulf States? Yes, at some point. Will a drought or wild fires destroy crops? Another yes. Will these things effect the pricing you are getting on products you have coming in your door today? Without a doubt!
To ensure your restaurant survival you need to start taking a good and a hard look at your pricing structure now and create a plan for the inevitable if your operation is going to survive the next round. If you believe your price points are reaching their ceiling then you will have to look at a plan that will adjust portion size, or start looking for product substitution possibilities.
Restaurant Survival Mode Plans with Suppliers
Talk to you suppliers, I’m sure you are not the first that has approached them of late with interest in finding substitutes for high priced products. You may even have to consider taking high cost items off your menu and replacing them with items that are similar and still hit the price points that you have established. Remember, your competitors may not be reacting in a proactive way and may simply respond by raising their prices. This very likely will backfire pushing their price points above their customers comfort level causing them to look for alternatives; YOU!
Now, particularly, the Chef and the suppliers of your restaurant need to work to come up with a structure that will get you through tough times. At the very least, have a plan!
Restaurant survival depends on little margins, in this way; anything that cuts into these margins could potentially obliterate the very business you have put everything into. You can’t afford to wait in order to react in this environment, so start planning your restaurant survival today.
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