1. Fluctuating Food Prices
Anyone who has worked with a restaurant supplier already knows that food prices can fluctuate. After all, if salmon is suddenly more difficult to come by, the price of acquiring the commodity will obviously rise. Recent news has shown that entire fields of crops are rotting because of a labor shortage on farms. This and similar events can cause your supplier to raise their prices, and this means you’ll have to as well.
Fortunately, there are ways to survive these fluctuations. Many restaurateurs, for instance, have taken to offering smaller portion sizes. This luckily works out with the current trend of people trying to eat healthier. You should also monitor food prices at a recipe level. This will allow you to keep track of different prices from different vendors and adjust if necessary.
By taking proactive measures, you can ensure fluctuating food prices won’t affect your restaurant furniture’s occupancy levels.
2. New Restaurant Competition
Now that the economic recession that started in 2008 is all but over, people are starting to dine out more. This has created an environment where budding culinary entrepreneurs are more motivated to start their careers. Unfortunately for you, this means the potential for increased competition, and if a brand that offers food similar to your restaurant’s opens nearby, you could be in for a battle.
When new competition shows up, there is no time for a “wait and see” attitude. To succeed, you’ll need to create an advantage when it comes to either quality, pricing or service. You’ll also want to improve your social media, email marketing and customer loyalty games.
Finally, keep an eye on what your competition is offering and how they’re marketing to potential customers. Don’t feel bad about doing this—because they’re probably doing the same to you.
3. Customers Going for Healthier Choices
As mentioned, many consumers are already demanding healthier options. If an eatery doesn’t have much in the way of health food, they could end up with empty restaurant furniture on nights that were once busy. Luckily, this is an easy issue to deal with, and it can be handled without changing the entire brand.
First, it’s necessary to offer a few health-conscious choices. The entire menu doesn’t have to be reinvented, but a few salads, soups, sandwiches and even fish entrees can keep people showing up. Additionally, many of the people aiming for healthy diets also focus on social responsibility, so marketing the fact that you recycle, buy locally or reduced your carbon footprint can go a long way with these individuals.
Whether the bulk of your revenue comes from having fully occupied restaurant furniture or selling dozens of to-go orders in a single night, there are always going to be threats to your establishment. Fortunately, merely recognizing and preparing for these difficulties can help you overcome them.