The economy is always a big variable in the foodservice industry. Even in booming locations like Denver, Phoenix, Salt Lake City, Santa Fe, and El Paso where the foodservice industry currently thrives, consumer spending can always vary depending on the economic climate.
There are four important concepts that restaurant owners and operators can consider during downturns, so let's walk through them here:
1) Understand the impact of an economic slowdown on the restaurant industry.
During an economic slowdown, people tend to cut back on discretionary spending. Eating in restaurants is often one of the first areas in which people reduce spending, and that can obviously have a significant impact on the restaurant industry as a whole. For restaurant operators, maintaining profitability is critical.
When decreased restaurant visits are coupled with things like the rising cost of ingredients, it can further squeeze profit margins. The good news is we have historical precedents of what to do during periods of slowing customer spending. By analyzing past data and market trends, operators can understand how previous downturns have affected the industry. This understanding can help them anticipate changes in consumer behavior and make informed decisions to mitigate the impact of the economic slowdown. By closely monitoring these indicators, restaurant owners can adjust their operations and implement strategies to help with any decrease in consumer spending.
2) Adapt your menu to cater to changing consumer preferences.
During an economic slowdown, consumer preferences and spending habits often change. People become more conscious of their expenses and may opt for more budget-friendly dining options. As a restaurant owner or operator, you must adapt your menu to cater to these changing preferences and offer value-for-money options.
Consider introducing affordable meal deals, discounted promotions, or special pricing for certain time periods. Offering smaller portion sizes or creating combo meals can also help attract budget-conscious customers. Additionally, incorporating healthier and more sustainable menu options can appeal to consumers who prioritize health and environmental sustainability.
What about comfort foods? Yes, during periods of uncertainty, classic comfort foods are always popular with consumers, as we saw during the recent COVID-19 pandemic. Likewise, consider putting comfort foods on the menu during periods of economic ambiguity, as well.
3) Create a welcoming and valuable dining experience.
In addition to an attractive menu, the overall experience is also critical for restauranteurs across the Rocky Mountain region. Now more than ever, today's diners are looking at the full experience as opposed to just the flavor of the foods.
What does this mean for operators? In an economically driven marketplace, it's even more important to provide perceived value. That experience includes service, setting, ambiance, and the food -- everything contributing to the experience today's consumers demand.
4) Embrace technology to improve efficiency and profitability.
So, how can restaurant owners and operators provide a valuable experience without consuming additional labor in an already labor-challenged marketplace? Foodservice equipment and supplies can play an important role in success during periods of economic downturn.
Whether it's a combi oven that can automate the cooking process or a state-of-the-art kettle to maximize batch cooking capabilities, the reality is today's foodservice equipment is designed to help with today's operational challenges. Another reality is that foodservice equipment innovation occurs at a pace never seen before in our industry. That's why it's important to speak with specialists who understand what the latest technologies can provide for today's restaurant operators. At the same time, the right specialist will also be able to tell you what innovations won't make sense for your operation.
Elevation Nation helps our customers by showing you the right solutions for your unique challenges. You should never be undersold or oversold. You should always have the solution that makes the most sense.
