If you feel like the rising costs of ingredients, labor and transport give you no choice but to raise prices at your restaurant, you might take comfort in knowing that across the country, brands are following through and raising prices -- and customers (so far) aren’t blinking. As the Wall Street Journal reported recently, Chipotle, which raised prices last year, experienced a 10 percent rise in sales largely as a result of bigger orders. Mondelez and McDonald’s have been experiencing similar results after boosting prices. While talk of a recession looms, U.S. consumer confidence is still at near-record highs since the recession, according to the Conference Board. If you need to raise prices in the coming months, find ways to make consumers feel it’s worth their while to pay you a visit. Link your price increases to discounts and other promotions, particularly for your most loyal guests. As Psychology Today reports, those deals tend lead to greater overall spending – an item regularly sold at a stable, discounted price will seem more valuable and worthwhile when the price is raised and a generous coupon is offered to offset it. Be strategic about the promotions you offer. As Toast advises, for a promotion to be most successful for your business, you should take time to understand your target customers and tailor promotions to what motivates them; address the business operational challenges you face (and which your point-of-sale system – not your gut -- will best help you identify); tap into local media, which can broaden awareness and interest well beyond the time frame of your promotion; and know your margins so you can bundle items that will lead guests to try higher-margin items on your menu (i.e. offering free fries with every milkshake purchase is better than simply giving away fries).
Long a trend setter in the delivery space, Domino’s is now going national with its use of e-bikes to boost delivery efficiency, according to a QSR Magazine report. The brand, which announced a partnership with e-bike company Rad Power Bikes recently, had been testing electric bikes in markets including Miami, New York and Houston and saw improvements in delivery and service as a result. As third-party aggregators vie for restaurant delivery customers, Domino’s has sustained its use of an in-house delivery team. While that can be a financially beneficial move for a large brand, the introduction of delivery via the Rad Power e-bikes, which have integrated motors that assist with pedaling up to speeds of 20 miles per hour, may enhance that efficiency further. Domino’s reports that there have been labor benefits from being able to hire candidates who don’t have a driver’s license but can use a bike, as well as team satisfaction benefits from workers who had been delivering via bike and can now get an extra boost when pedaling up hills with the help of a motor.
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