Brands in the food services industry have been losing margins because of the increasing cost of labor, transportation, and food, as well as COVID reduced traffic, which is why pricing is more relevant than ever. Many large, multi-unit restaurant brands procrastinate on pricing out of fear that an increase will be detrimental. This mindset creates a state of inaction, which is a mistake because pricing is actually the biggest lever in terms of maximizing a brand’s profitability, as the author explains.
One of the industries suffering most acutely from the current COVID-19 pandemic and resulting social distancing requirements is the restaurant industry. In this article, the author provides actionable pricing strategies that restaurants can employ now to both survive the storm and also recover afterwards.