Dynamic Upcharge: Handling Rising Food Costs

As rising food costs hit both consumers and restaurants hard, some in the industry have adopted dynamic pricing.

Quick Bite

If the foodservice industry is one thing, it’s resilient: in the past 5 years alone, there’s been a major global pandemic, natural disasters, inflation, and two major outbreaks of bird flu. If your business has survived this long, you’re an expert in adaptability.

Whether it’s cutting drink refills or charging for each egg in an omelet, food services have lots of tools in the playbook to help weather the storm. A crucial part of every successful strategy in that playbook is transparency. Forced to raise the price for that fan-favorite egg dish? Put up a sign and have your waitstaff ready to explain your reasoning—customers are dealing with those same rising costs at home. Absorbing the extra costs to keep your customers happy? Market that choice and let customers know you’re helping them out.

Whatever route you take to cover your costs, your patrons can get behind. Letting customers know your reasoning makes your business feel honest—and companies that consumers can trust are companies that stay in business.

Food for Thought

We all want food costs to stay low forever—until that dream becomes reality, the foodservice industry will ride the pricing rollercoaster like we always have.

What cost strategies are you using, and how transparent do you make them to your customers?

• Category: Trend Report
• Tag: Ice Machines, Kitchen Equipment, Restaurant, Trend Report