This month we look at: chili pepper prices, how to optimize your restaurant for patio season, Gen Z in the kitchen, inflation and national restaurant sales trends from April.

This weekend starts off one of the biggest events in the restaurant world, the National Restaurant Association show. Our team will be there, comparing free hot dogs (I am personally #teamVienna), eating way too many food samples, visiting Coca-Cola Village, and (of course) talking about all things restaurant tech and liquor inventory in real life.

If you're attending, be sure to stop by booth #5666 and grab a super special print version of our newsletters (along with some of our semi-famous stickers). We added in industry trends, metrics, and even a few fun games too, like this What's Your Restaurant Personality Type quiz. 

This month's Board is all about things heating up, naturally. But my favorite has to be the restaurant sales from April (more on that below).

I'd love to know what you're looking forward to if you're attending the NRA show this weekend, or what's been your favorite part about past shows if you're taking this year off. Reply to this email and let me know (I read every reply, I promise!). 

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- Rachel & the MarginEdge team

MONTHLY SALES METRICS & UPDATE

Full Service ended the month 1% up from April 2023's numbers and Fast Casual ended with a whopping 6% growth. No doubt about it, April 2024 was a fantastic month for restaurants from both segments, but Fast Casual really pulled out all the stops. 

The average food category costs as a percentage of sales increased from last month for MarginEdge customers, with food costs averaging 30% of sales. While up, 30% is still a healthy number!

Regionally, the Northeast ended the month with strong positive growth while the other regions ended all within a few percent of each other. 

Dig into the full report.

ITEM TO WATCH

Chili peppers

It's getting hot in here, so take off that Shishito peppers app from your menu. Or don't, we can't tell you what to do. But pepper prices are getting pretty spicy so you should at least be keeping an eye on their prices. For MarginEdge customers, Shishito, serrano and jalapeño prices have all been increasing steadily over the last month. Shishito prices alone have doubled, to a median price of $7.70/pound.

So what's the deal? Well, chili pepper imports increased 4% last year, making up approximately 95% of total availability. This means we're incredibly dependent on Mexico for our chili peppers, and thanks to a historic drought and water crisis in their northern growing states like Sinaloa, production has declined similarly to bell peppers that we watched back in January.

This drought is so bad, it's even led beloved (and controversial) Sriracha manufacturer, Huy Fong Foods to warn of a sriracha shortage coming this year.

If you transitioned to outdoor dining during the pandemic, you definitely learned a thing or two about the highs and lows of patio season. Due to the weather being, well, weather, getting the most out of your patio dining sales is never a guarantee. Here are a few tips to help boost those profits all summer long:

1. Prioritize guest comfort. This is the key to great hospitality, guest experiences and ultimately loyalty - which all mean more cash for your margins. Patios can be brutal in the summer, so if you want to increase spend per ticket, the best first step is to ensure your guests are comfy and happy.

• At a minimum, you should have an adequate number of umbrellas or shades to cover your tables comfortably, but a large overhead shading system works even better because it can protect tables from rain (allowing you to use the space year-round), and doesn't get in the way of your staff while serving. 
• Think about adding greenery, which naturally brings the temp down, water bowls for dogs, and misters or heaters for night-time patio dining.
• If your patio is on the street, you should also look into creating a barricade to help diners feel more protected from the road traffic and (bonus for you) prevent people from seating themselves when they're not meant to!

2. Optimized menu options. Patio dining is different from dining indoors because guests are inherently more conscious of the weather and season. Creating menu items that feel authentic to that experience is a great way to increase profits (and honestly, who doesn't want a margarita the second it hits 75º and sunny?).

• Add pitcher or batched cocktails to your menu for more efficient ways to sell your most popular summer drinks.
• Since patios are better for larger groups, think about adding more shareable options for the table.
• If you're in a particularly hot region, think about adding room-temperature or cooler entrees like salads or cold sandwiches to the menu.

3. Take care of your team. Patio season isn't always the greatest for your team (#chafingseason) but they arguably have the greatest impact on guest happiness and spending out of anything else in your restaurant. A happy team is more likely to result in happy guests. 

• Misters and shade for your guests should also work for your servers so that the transition from the sweet, cool, 72º dining room out into the heat is as painless as possible.
• Using a mobile POS terminal or a QR code ordering/paying system can make paying faster, which also means more potential turns for your patio.
• Pay attention to the weather and plan staff accordingly so you're not overstaffing and wasting money when a last-minute summer storm rolls through.

Lastly, be sure to market the absolute crap out of your patio on social media. Use your city in your hashtags, and tag your restaurant's location so nearby prospective guests can find you. If people know it's there, they'll be more likely to stop by when the weather starts feeling like it's margarita o'clock.