Latest AMP News

Making Price Increases in a Down Economy

Q: The cost of food has been increasing over the last year. Times have been tough but it’s time for me to take a price increase on my menu. What is the best way to go about increasing our menu pricing?

A: The National Restaurant Association is forecasting an increase in wholesale food prices of 3.3% over 2010 while the USDA projects a 2.0-3.0% increase for all foods. Meats, pork, dairy, fats and oils are projected to have the highest increases. Click here to read more »

Four Simple Reports for Understanding Your Business

Q: When I step back and take a look at my business, I know I need to spend more time analyzing sales information. Where do I start?

A: The most underutilized tool in the restaurant industry is the Point of Sale System (POS). Reams of paper are used daily in support of a healthy business but those wonderful reports are underused in decision making to move the business forward. Analyze POS reports from both a macro and micro level and use various time parameters such as hours, days, weeks, months, and year over year. To begin, focus on the macro level reports and these four specific subjects. Click here to read more »

Price Healthy Menu Items Strategically

Q: There has been a push in the restaurant industry to increase the number of healthy items on menus; how do I go about pricing these new menu items when I add them?

A: According to the National Restaurant Association, most consumers are reluctant to pay more for healthy items on a menu. Based on the research of Port Washington, N.Y.-based firm NPD Group, fast food consumers are more willing to pay for healthy choices that full service diners, and younger guests expect to pay more than older guests. NPD claims consumers define healthy options as having fresh, quality ingredients, a choice of portion size, balanced food groups and grilled items. Bonnie Riggs, research lead, further states, “Price must not be a barrier to entry. If you put healthy items on your menu, you have to be really careful how you price them.” To be clear, every item on a menu must be priced carefully not just healthful items. If your menu is perceived as inexpensive and you add healthy choices priced at $3.00 more than everything else on the menu it’s obviously going to appear out of line. The goal is to strategically price your menu to blend healthier items.

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