To survive the pandemic, 81 percent of restaurant operators are either planning to or have already increased their menu prices.
Research company Technomic has asked 350 U.S. restaurant operators, what kinds of menu and preparation changes they have made or are planning to make in response to Covid-19?
While many aspects of the pandemic’s impact on the industry are out of the operators’ control, reducing costs and improving efficiency are areas that operators can manage
. To reduce product and labor costs, operators are streamlining menus
and using more versatile ingredients
, with 85% of restaurant operators reporting they have or plan to make these adjustments. So as not to dissuade their customers from visiting, operators should home in on their best-selling items
that are both easily executable and work well for off-premise dining.
When it comes to more direct ways to cover their costs, operators are showing little interest in adding a specific Covid-19 surcharge, which may turn off many customers. Instead, operators are more likely to increase menu prices to cover costs, with 81% of restaurant operators indicating they have either implemented or plan to implement price changes.
With the costs associated with delivery eating into profits, some operators are experimenting with increasing prices for their delivery menu, as well as offering fewer items.
Technomic is a research and consulting firm producing in-depth research focused on the foodservice industry. The company provides insights into consumer, industry and menu trends in the U.S., Canada and 23 countries around the world.
Economic Impact Navigator
This program provides a dynamic approach to monitoring the market and assessing the impact of changes in major economic conditions on operators and consumers alike. Technomic uses their decades of historical data paired with operator and consumer survey data to create foodservice industry forecasts and other ongoing deliverables to help its members anticipate market disruptors and be prepared for these shifts.