April 11, 2025
This month we look at: chicken breast prices, three common accounting mistakes, how to make to-go orders more profitable, inflation and national restaurant sales trends from March.
Has it been a month since I was last in your inbox or a year? I couldn't tell ya. But here we are with the April 2025 edition of The Board.
March was a busy month, and no not just because of the Severance finale, the White Lotus finale, or from just trying to keep track of whatever is happening with the stock market. We also saw stronger restaurant sales, particularly for the Full Service segment, giving us a lot of positive feelings about May and our industry's Super Bowl: Mother's Day. (Does that make Valentine's Day the Stanley Cup? World Series? Clearly, I'm not a sports person.)
We also launched the MarginEdge podcast, Science of Service! So, if you've ever read this newsletter and thought, "I wonder what this person's voice sounds like," you don't have to wonder much longer. Our show talks about the ups and downs of the hospitality management industry, offering real stories, practical advice, and lessons from people who’ve been there — sharing what worked, what didn’t, and how they kept going when the odds were against them.
Head here to check out our first three episodes talking about retail, growth funding and bringing on private equity while keeping your culture intact. Please listen, comment, like and subscribe wherever you get your podcasts.
And if you've been a long-time Board subscriber, you'll know just how much we love a good Gift Guide to celebrate heritage months and the holidays and support our restaurant community at the same time. May is Asian American & Pacific Islander Heritage Month, so if you own and operate (or just know and love) an AAPI-run restaurant business that sells goods online, shoot me an email at rachel@marginedge.com so we can include them.
Know someone who would like to join our 93,828 subscribers? Forward to a friend or send them this link.
- Rachel & the MarginEdge team
P.S. Just in case you're still swirling in the whirlwind of March, next Tuesday is Tax Day. So, naturally, we've included some accounting tips on common mistakes (and how to avoid them) in our Ask Me Anything section below.
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MONTHLY SALES METRICS & UPDATE
The trailing 4-week (28-day) average of year-over-year (YOY) sales for Fast Casual came in at +3.72% and Full Service at -0.43% at the end of March compared to March 2024 sales.
Food costs averaged 27% of sales last month, reflecting a -1% drop from February's average.
ITEM TO WATCH
Chicken breasts
Potentially suffering from middle child syndrome (eggs can't keep getting allll the attention), chicken breast prices have sneakily started rising over the last few weeks. The median price per pound for MarginEdge users this past week was up +11.5% from 6 months ago, and +10.3% from a year ago.
Is bird flu to blame? Not this time, as laying hens rarely (if ever) are used for meat production - they're just different birds. So if it's not Avian Thanos' fault, what causing the increase?
It's likely that as egg prices increased, consumer demand may have shifted consumption to other cheap proteins like chicken breasts and thighs. This increase in demand could likely be triggering higher prices, much to the chagrin of gym bros and picky eaters everywhere. But as egg prices come down (and they have been - latest price chart here), chicken prices may also cool. For now, we can feel comfort in knowing that (at least this time), the egg came first.
Oak & Ola | Tampa, FL
ASK [me] ANYTHING
How can I avoid common accounting mistakes?
Now that tax season will soon be over, it's easy to let the rest of your accounting tasks fall to the bottom of your to-do list. And it's no wonder with rising costs, staffing puzzles, maintaining vendor relationships and putting out all the other fires that pop up unexpectedly. Thankfully, our friends at KitchenSync put together a list of the three most common mistakes they see operators make and how to avoid them to keep your growth steady and surprises to a minimum.
1. Not treating accounting tasks like a priority
It happens all the time. Books get updated once a month (or less), and by the time reports hit your inbox, they’re already out of date. That’s like driving while only looking in the rearview mirror — you’re reacting to issues long after they’ve done damage.
🛠️ How to fix it: Aim for weekly P&Ls and real-time reporting. Watching labor, prime costs, and vendor spend week-to-week gives you the chance to course-correct before those small issues turn into margin killers.
2. Overcomplicating your tech stack
Most operators end up with a patchwork of systems for POS, payroll, inventory, and accounting — none of which talk to each other. The result? Clunky processes, double data entry, and too much time spent wrestling spreadsheets instead of running your business.
🛠️ How to fix it: Stick with tools that integrate easily or work with a financial partner who can bring it all under one roof. Your tech should work for you — not the other way around.
3. Inconsistent AP and vendor processes
Invoices over text, email, and paper. Payments sent out from multiple accounts. No clear approval flow. It’s not just chaotic — it opens the door to missed bills, duplicate payments, and even fraud.
🛠️ How to fix it: Use a clean, trackable AP process. Automate recurring payments, set up simple approval flows, and make reconciliation part of the routine, not a last-minute scramble.
If you're interested in learning more about common restaurant accounting pitfalls or need help cleaning up your accounting processes, be sure to check out KitchenSync for more info!
💬 Ask [me] anything!
Really. Each month we’ll take a look at the questions we get and answer one here. Have a question about our product, accounting, or restaurant operations in general? 💌 Email me or message us on our social media channels.
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Snappy's Small Bar | Washington, D.C.
THE ECONOMY
Inflation Down!
The March 2025 Consumer Price Index (CPI) report is in, and indicates the following month-over-month changes in food inflation:
- Overall Food Inflation: Up 0.4% from February, and is up 3.0% YOY.
- Food At Home: Up 0.5% from February, and is up 2.4% YOY.
- Food Away from Home: Up 0.4% from February, and is up 3.8% YOY.
- Limited Service Meals: Up 0.2% from February and by 3.4% YOY.
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Full Service Meals: Up 0.6% from February, and by 4.1% YOY.
Overall, inflation came in at -0.1% down from February, which is the first negative month we've seen in (checks watch) nearly FIVE years. This puts year-over-year inflation is at 2.4%. While this kind of news normally would bolster markets, as of the morning that this report was released (4/10), markets are still down from tariff concerns. Experts do not expect it to continue and attribute this cool-down to lower consumer demand since the biggest contributors were fuel and used cars.
Tl;dr - Overall inflation went down, but food inflation rose, more so for Full Service than Limited Service.
Bento Sushi | Multiple locations, FL
'TIS THE SEASON
Ways to make delivery and to-go orders more profitable
While we still don't have a crystal ball to tell us exactly what's going to happen over the next few years, key economic indicators are sending up alerts for a potential recession. Since the current stock market slump is due to tariff and trade policies, and not a forcing external factor (like the pandemic in 2020), it's possible a recession won't happen. We just don't know. But what we do know is that during recessions, consumers spend less and often "trade down" choices with their disposable income, meaning instead of dining in, they'll opt for delivery or picking up to-go orders.
For this reason, we've put together a list of a few ways to tweak your to-go and delivery processes to boost margins:
- Look into in-house delivery: Third-party delivery platforms have tons of benefits but also come with fees and added costs. You can avoid this by managing your own delivery system. This can be done with your POS if they offer an online ordering function, or if you know a guy who knows a guy, you could also look into hiring a software developer or firm to build a custom one for your business. If you have a highly customizable concept (like Chipotle or CAVA), this may be a better option in the long run. If in-house isn't an option, here's a handy list comparing some of the major third-party delivery offerings.
- Cost-optimize your to-go menu: Another great way to increase margins is by using delivery-specific pricing to offset third-party costs. You'll also want to be sure to include packaging costs when you're pricing your menu, but be sure to not cost yourself out of customer interest, especially if you're using third-party platforms where guests can compare prices for different restaurants side-by-side.
- Promote pick-up: If your menu prices are a bit higher for delivery, you can offer discounts or streamlined curbside service to encourage pick-up orders. Lower-to-no third-party fees, and you have the opportunity to connect with the customer which is important for building and maintaining loyalty. You can also do pick-up bundles, LTOs, and special pricing during slower times kind of like a pick-up happy hour.
- Balance costs with satisfaction: It may also make sense to offer a more limited to-go menu full of your Stars and Puzzles, or change out products that are more cost-effective where it makes sense. You should focus on efficiency while still keeping customers happy. Not sure what a Star or Puzzle is? We've got a blog to help you out here.
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