Food Fight: Combat Rising Labor, Food Costs with Smarter Restaurant Software
August 13, 2012 | By Ryan McRorie |
The restaurant industry is expected to grow this year, but realizing big profits will be a tall order in the face of rising food and labor costs.
State minimum wage increases – ranging from 28 to 34 cents – could have a large impact on quick-service restaurants, potentially elevating a business’s labor cost by several percentage points. And with wholesale food prices increasing 8 percent last year and a National Restaurant Association forecast of another 4 percent increase this year, restaurant industry profit margins will feel significant pressure.
Restaurants may look to increase prices or cut staff to offset increased costs but both responses could cost customers and further confound the challenge.
So what’s an operator to do about it? Simple, invest in restaurant software that cuts or significantly reduces the three biggest cost centers: food, beverage and labor.
Watch this segment of our latest webinar to see how our software can help: