This month we look at: egg prices, ways to create new revenue streams, making the most of New Year's Eve and national restaurant sales trends from November.
It's the last month of the year, and what a year it's been! We know how busy this season is for our restaurant clients and honestly, we couldn't be more excited about it. Especially considering the NRA just released their survey results about diners' plans on using restaurants during the holiday season. They reported that 63% plan to dine in at restaurants and 48% plan to order take-out or delivery.
Our item to watch this month is (once again) eggs. Thankfully trends aren't looking as egg-septionally dire as they did earlier this year, but price jumps are still never great news - particularly as we reach peak baking season. While not technically a holiday classic, this is my hands-down, favorite cookie recipe. The flakey salt pairs perfectly with a well-earned, post-shift drink (or any drink, really).
Wishing you all a very busy and very profitable December! Know someone who would like to join our 59,721 subscribers? Forward to a friend or send them this link.
- Rachel & the MarginEdge team
Fast Casual ended the month at -1% compared to November 2022's numbers and Full Service was not far behind with -2%. Both segments' saw their best performance during the second week of the month with Fast Casual peaking at around 6% and Full Service at around 3%.
The average food category costs as a percentage of sales dropped slightly from last month for MarginEdge customers, with food costs averaging 28% of sales.
While it may not be time to sound the egg alarms just yet (aka roosters?), prices did jump up for our ovular friends in November. MarginEdge customers saw a whopping 38.7 percent median price change from October to November, with December prices already up nearly 15 percent from that just halfway through the month.
We know many of you may have some lingering anxiety from the dramatic egg price increases earlier this year, so rest assured, what's happening now is not likely to continue in the same fashion (although we can likely blame the same culprit). The same highly contagious bird flu that infected prices earlier this year was found again in the Midwest this November. The flocks were mostly small, backyard operations but due to the nature of the virus, there is cause for caution.
Thankfully this trend will likely fly the coop soon as egg production has increased in December.Taft's Ale House | Cincinnati, OH
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.
Oak & Ola | Tampa, FL
November's numbers are in, and the consumer price index (CPI) for food away from home once again remained unchanged at a 0.4% increase for the third month in a row. Food at home (grocery) increased 0.1% from October. Compared to November 2022, overall food inflation is still up 2.9%. Overall inflation only increased by 0.1%, leaving us at 3.1% up from November 2022 across all categories.
While it looks like pressure on food prices from supply chain issues has calmed down, the main reason for food away from home's sustained increase is likely due to increased labor costs and low unemployment rates for the food service industry.
Supply chain issues should continue to improve, as the White House Council on Supply Chain Resilience recently announced that the USDA is investing nearly $196 million into the creation and improvement of market opportunities for agricultural producers and entrepreneurs.
And on the subject of labor, which has been a very hot (and sore) topic for restaurant operators throughout the pandemic and its recovery - we finally have some good news! Restaurant employment levels surpassed pre-pandemic levels next month, but the findings vary greatly by segment.
Imperfecto | Washington, D.C.
The jury may still be out on which of our industry's big nights is the restaurant Super Bowl, still, everyone can agree New Year's Eve is a top contender. (And yes, Super Bowl Sunday is also included on that list along with Mother's Day, Valentine's Day, Thanksgiving, Christmas, and their respective Eves.)
As a notoriously busy night, diners know that if they want to have any plans other than ones involving their couch and a $40 last-minute, DoorDashed bottle of André Brut, they need reservations. So with an impending influx of reserved revelers (likely only in the booking sense), how can you make sure you're making the most of one of your busiest nights? Here are some tried and true ways to ensure the only ball being dropped that night is the one in Times Square.
To start, prix fixe menus are a no-brainer (there's a reason everyone does them). Creating a menu that optimizes efficiency and profit margins ahead of time will make sure your kitchen staff and bank account start the new year off on the right foot. You might also consider adding extra options to enhance the dining experience (hello, caviar toppings!) and market your special offerings through email and social media. If your books aren't full yet, this is a great way to get the attention of those last-minute Larrys who forgot to plan ahead.
Essentially, it comes down to smart planning and using tools effectively to maximize profits during the holiday rush, all while ensuring a great experience for guests and staff alike.
What's [me] into
📖 WHAT WE'RE READING
🎧 PODCASTS WE'RE DIGGING
|