Tips for Restaurants: Coping with Higher Costs of Produce

The Coronavirus pandemic has introduced a new normal for the hospitality industry as well. With added precautionary measures towards social distancing and hygiene, restaurants are taking every step to thriving in the current environment. Disruptions in the supply chains through halts in transportation and agricultural growth have led to an exponential rise in the prices of produce, including essentials like potatoes and onions. 

Restaurants had faced total closure for more than 3 to 4 months in a row, which impacted their businesses to a large extent. Now that the lockdown is lifted, the following are some tips for restaurant owners to cope with the rising prices of produce: 

Offer a seasonal menu

Seasonal menus do away with unnecessary items that do not match the current tastes of consumers. While appealing to customers, such menus avoid massive costs and are profitable to restaurants, especially during such an environment. 

Food combos

Offering food combos at reduced prices is another way to sustain in the current environment. Such offers entice customers to choose one restaurant over the other and try new items. 

Consumers prefer well-inclusive combos that save them the hassle of selecting from the never-ending menu. Also, adding time limits to such offers increases their profitability. 

Try a new supplier

If you face a significant rise in prices from your supplier, approach someone new who can offer the same items at a lower price. There are chances that your vendor might be charging you more and keeping huge margins for himself; exploring the market will offer you a firsthand experience of the present market conditions.

This task might seem time-consuming at first, but once you get a new supplier who is willing to sell for less, you can smoothly manage other operations. And the savings, when calculated monthly or quarterly, sum up to a large amount of money.  

Start buying in bulk

Buying in bulk is always a smart decision to take. In terms of food, you have to be very cautious about the quantity you purchase, as purchasing too much might result in wastage. When restaurants and other food chain businesses buy a product in bulk, they get an additional discount to help tackle the ongoing crisis.

Change your menu

During such tumultuous times, restaurants can revamp their menus to include only essential food items. Through this, restaurants can save up on their expenditure and also help contain food waste. A limited menu with combos that are in demand can give your restaurant the much-coveted boost. 

Standardize restaurant operations

Restaurant owners must standardize restaurant operations to suit current requirements. Prioritizing essentials and containing wastage can bring the business back in shape. Online delivery, contactless options and pick-up facilities are a must-have in such an environment. By standardizing operations and communicating the precautions taken, restaurant owners get an extra edge over their competitors. 

Conclusion

The Coronavirus pandemic has affected businesses across categories, and this is when all those lessons of adaptation and dynamism must be implemented. With the right precautions and strategies, the hospitality industry, just like any other, can thrive in this crisis.

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