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The Challenges of How to Run a Restaurant in Today’s Age

January 31, 2013 10:00 AM

The Difficulty of How to Run a Restaurant

The worldwide food price increase is making it harder and harder for businesses to keep their prices low. Some food Food Price Increase Does Not Have to Mean Restaurant Price Increasebusinesses have been majorly affected by the food price increase. An inability to purchase cheap ingredients leads to restaurant price increases, lowering the number of customers willing to dine in the venue. More and more, food businesses are choosing to close down because of the difficulties. Popular chains have raised their prices across the board. Unfortunately, food price increases are continuing, and businesses are realizing that they must find a different approach to figuring out how to save money on food, in order to successfully operate the business. The ObamaCare health plan proposes an additional challenge for businesses, requiring them to provide health insurance coverage for full time employees. Shouldering the cost will mean finding ways to increase profits in order to cover the extra business cost.

How Food Price Increase Does Not Have to Mean Restaurant Price Increase

Surveys have concluded that restaurants are choosing to reduce portion sizes, remove high food-cost menu items, and renegotiate with suppliers to ensure they are able to keep their prices constant. Altering the menu to include dishes that have a reasonable food-cost may be necessary as some cheap ingredients are rising in price. In response to the ObamaCare health plan, some businesses have reduced the hours of some of their employees so as to be exempt from providing health insurance coverage. This may not be necessary if businesses and employees ensure they are maximizing their potential during opening hours. If business is slow, preparations can be done for later, or new foods can be prepared to add experimentation and variety to the menu options. Having efficient freezers allows doughs, spreads, and other products to be prepared well in advance for later use (and profits).

When any new business is considering how to run a restaurant, food price increases are just a start to the long list of factors that must be considered. Cost is no doubt a critical factor, since it directly impacts the profits that will be earned. Reducing food costs and altering the menu is a great option. It is important to note, however, that some things are worth investing in for a business to succeed. Top quality restaurant equipment will save maintenance costs and provide maximum performance, and therefore should not be compromised. By finding creative solutions to the challenges of operating of food business today, restaurants can pull through survive these tough times.

Posted by Dana Williams at 10:00 AM

Filed under: Resource CentralHow-ToGeneralCost Savings

Tags: cheap ingredients, food price increase, how to run a restaurant, how to save money on food, restaurant price increase

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