This month we look at: chicken wing prices, how to prevent employee theft, the Super Bowl of the restaurant industry (Mother's Day), inflation and national restaurant sales trends from March.

Anyone else feel like 2024 is speeding by? I recently took a trip to Colorado to film a video with one of our clients, and I can attest that time definitely flies when you're doing something you love (which for me is getting to meet our clients face-to-face).

The shoot went really well, and it was amazing getting to interact one-on-one with the people we're all here to serve and help succeed. Great people, great food and a great (and huge) selection of agave-based spirits - can't go wrong.  

While I was there, our team shared a bonding moment together by toasting with and then eating a chicken wing covered in their hottest sauce available (aptly named "Bear Hot" after the black bears that roam CO). You'll see below that this exercise in trauma bonding inspired our Item to Watch this month - and it is one to watch, as prices for MarginEdge customers are at a 2-year high. 👀

We've also got some info on inflation (brace yourself), and how to prepare your restaurant for Mother's Day (brace yourself again). 

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- Rachel & the MarginEdge team

MONTHLY SALES METRICS & UPDATE

Fast Casual ended the month with -3% down compared to March 2023's numbers, and Full Service ended with -1%. While both segments ended the month down, mid-month performance was stronger, peaking around 3% for Full Service and 5% for Fast Casual. 

The average food category costs as a percentage of sales decreased slightly again from last month for MarginEdge customers, with food costs averaging 28% of sales.

Dig into the full report.

ITEM TO WATCH

Chicken wings

Chicken wing prices have been quietly, but surely increasing over the past few months. While not as volatile as in previous years, these pricey parts make a big impact not just for restaurant owners, but even for investors. Wingstop stock has been negatively impacted by wing costs a few times in the past and has had to pivot to keep profitability growing. 

When looking at chicken wing prices across MarginEdge customers, the median price per pound increased to $2.87 just last week. For comparison, we've included the charts for the median price per pound for chicken breasts and whole chickens below. Both of these aren't seeing nearly the same level of increase, likely pointing to prices being most impacted by demand rather than supply chain or production issues.

Because chicken wings are hard to substitute for, you may want to look into contract pricing with your vendors if you have a chicken wing-heavy operation, and if you already have it in place, be sure to spot-check prices. 

Employee theft is an unfortunate reality of running restaurants. And while it's no one's favorite thing to deal with, as an operator, there are several ways to handle it. The best way to do so by far is to have a game plan in place to prevent it from happening in the first place. Here are a few ways to do that from our friends at OnePoint Franchise Accounting.

1. Get your GMs on board. Theft likely isn't going to happen right in front of you, so making sure your managers are well-equipped with cash management best practices is key. You can also set up your POS to require a manager's approval for voids and discounts, but you'll of course want to consider frequency and feasibility of needing a GM to approve everything.
2. Make cash deposits frequently. Daily deposits are a lot easier to sift through than multi-day ones when cash goes missing. You can even set up a smart safe that records daily deposits onsite digitally, communicates with your bank, and sends an armored vehicle to pick up the physical deposits once a week.
3. Incentivize cash accuracy. If you're having consistent issues with deposits not adding up, incentivizing your management teams may help. You can consider tying deposit accuracy to manager bonuses or other incentives. 

Taking preventative steps, like carefully vetting new hires and conducting regular financial audits helps deter theft by reinforcing oversight. By using technology, encouraging open dialogue, and keeping a close watch, you can effectively prepare for and prevent employee theft.