Fighting Inflation in Your Operation

How to fight inflation in your operation? Plan for the worst, hope for the best, is my advice. Inflation is the reality we are facing and it's not going away any time soon. I think we are looking at a new (higher) plateau where food prices are concerned and I'm sure most restaurant owners & execs out there are already aware of this. Now the question becomes what can you do to mitigate the impact of rising food costs on your profits while staying competitive in the market?

First, while it is feasible to pass some of these rising costs on to your customer it is not likely that they will tolerate the entire impact. That said a large portion of the forecasted increase in costs will need to come directly from your operating budget. It's time to take another look at your already strapped operating expenditures to determine where you can cut out additional waste and expense. Get creative. Ask your employees if they have any suggestions. Offer incentives to those that contribute ideas that significantly improve efficiency and cut waste.

Next, are you doing everything you can to retain your current customer base? If ever there was a time for customer loyalty--now is that time. You can be sure that when prices go up, people are going to be even pickier about where they eat and where they buy. Ask your customers directly if they are happy with what they are getting and if there is anything you can do to improve their experience? Stay open-minded. Remember you are invested in your business, the customer is not. Listen to what they have to say. Keep your customers happy and they will keep coming back.
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