Rising costs pose problems for restaurants because they are reluctant to raise prices as much as they need to. Article describes methods they are using to deal with this problem.
Featuring higher margin products in the menu or phone menu. Reducing number of items on the menu to accommodate kitchen with reduced staff. Rolling dessert cart through the dining room to encourage (high margin) sales. Fancy cocktails? Exotic beverages: beer, wine, whiskey?
A retired friend of mine was a CFO of a fairly large restaurant chain. We were discussing restaurant financials and the impact of rising costs.
He mentioned, and I haven’t confirmed, in Australia, middle tier restaurants are gone or dying. Upper tier restaurants charge enough to cover costs, lower tier (fast food) have economy of scale. The middle casual sit down dining is in trouble.
Employees do not owe their employers a profitable business.
Or we as consumers can accept that eating out isn’t as cheap as it once was, pay the higher prices and tip generously.
(Yes, I know not everyone can do that. When I was growing up the only time we ate out was when we visited my sister at school, a 70 mile drive for HS and 55 miles through NYC for college. That was it, not even fast food or takeout. It wasn’t until I was in college many years later than picking up a pizza on Friday night was possible. Those pizzas where my mother’s only escape from cooking dinner after decades of no escaping it.)
With Starbuck’s workers joining unions, it will be interesting to see how much people will pay for a cup of coffee and a sandwich. Right now, a large coffee(plain) with tax, costs $3.35.
And with Amazon workers unionizing, the discounts will diminish as well.
Gosh, that means, I have to buy and fix all my food and coffee as I’ve done all these years and having to search even more for better discounts on things or gasp! Go to a store.
“With Starbuck’s workers joining unions, it will be interesting to see how much people will pay for a cup of coffee and a sandwich. Right now, a large coffee(plain) with tax, costs $3.35.”
the local 7-11 is $1.28 for any size coffee or soft drink…
I don’t like Starbucks coffee…either… bitter taste…
“I am so old I am remember when the Starbucks thing was being proposed, that a common question was “Who is going to pay $2.00 for a cup of coffee???””
If you could put all the coffees I’ve bought from starbucks into a container, it probably wouldn’t measure half a gallon.
Every now and then, when I was traveling, it was the only source at an airport to get coffee…
or in a downtown area.
There are a dozen starbucks places in my town…or more. I haven’t been to one of them.
I have my coffee at home 95% of the time, and if I eat out…well, it’s now about $3 for all you can drink with breakfast at a sit down place, or a buck or so at McD senior rate.
If you could put all the coffees I’ve bought from starbucks into a container, it probably wouldn’t measure half a gallon.
Every now and then, when I was traveling, it was the only source at an airport to get coffee…
Same here. I can’t drink coffee.
Still when traveling they can be an easy place to buy breakfast, snack or light meal. One expense report would have given the impression that I was living on coffee but was actually just buying sandwiches at the Starbucks next to the hotel. Starbucks was much cheaper than venturing further out into bad weather for “better” choices.
vkg writes: buying sandwiches at the Starbucks next to the hotel. Starbucks was much cheaper than venturing further out into bad weather for “better” choices.
The grilled cheese sandwiches… YUM!
In my opinion, perhaps the best grilled cheese I’ve eaten in… the last 20 years.
For Tele and others who don’t like bitter coffee, the Blonde roast (light roast) is way less bitter.
I hear the Nitro cold brew is also not bitter.
I get a Blonde latte with almond milk… 2x month?
I drink SBUX Veranda (Blonde) Keurig at home.
And Veranda Nespresso.
At home, I put a couple TBSP heavy whipping cream in the cup.
Or, for a Nespresso cappuccino, I use half and half.
"For Tele and others who don’t like bitter coffee, the Blonde roast (light roast) is way less bitter.
I hear the Nitro cold brew is also not bitter.
I get a Blonde latte with almond milk… 2x month?
I drink SBUX Veranda (Blonde) Keurig at home.
And Veranda Nespresso."
Walmart Brand Blonde Breakfast coffee is my favorite. Add a shot of ‘creamer’ to it, one Splenda, and enjoy. Used to do the half and half, but too many calories and the creamer is actually better tasting. Basic variety, no flavoring.
If I’m gonna have the creamer, I, too, use the basic, no flavor. And, I prefer the Coffeemate liquid. The dry powder stuff… blech.
As an artificial sweetener, I got a small jar of ground dried stevia leaves. It’s green.
A friend was over, had a coffee and wanted artificial sweetener. The stevia leaf was all I had.
LOLOLOLOL. ?? it tasted like green grass in the coffee.
For Tele and others who don’t like bitter coffee, the Blonde roast (light roast) is way less bitter. I hear the Nitro cold brew is also not bitter. I get a Blonde latte with almond milk… 2x month?
I drink SBUX Veranda (Blonde) Keurig at home. And Veranda Nespresso. At home, I put a couple TBSP heavy whipping cream in the cup. Or, for a Nespresso cappuccino, I use half and half.
You have got to be kidding me. What ever happened to Folgers and Maxwell House? Not that they are all that good without adding a little something but they are coffee not chocolate milk. Of course I don’t frequent Starbucks so what do I know.
… and customers are also under pressure from inflation.
Yes, rising gas prices mean the average customer (who lives paycheck to paycheck) has less money to spend. That means less eating out, trading down to less expensive places, skimping on brand names to buy generics, etc.
That’s why restaurants feel that passing through all their cost increases will result in falling sales. So creativity to increase income from those who can afford to pay.
IAG What ever happened to Folgers and Maxwell House? Not that they are all that good
I agree “not that they are all that good”. you provided the answer!
LOLOLOLOL.
They are medium roast. I drink those, or whatever a cafe/restaurant serves. Occasionally, it will be decent. Mostly it’s merely acceptable. I RARELY get drip coffee that is truly good.
With SBUX Blonde, I almost always get “good” or “delicious”. I believe that’s cause it’s a light roast.
And, I don’t need sugar or sweetener - just almond milk.
When traveling, I stop most often at SBUX cause the Blonde is consistent. I also like to stop at “local” specialty coffee houses… but they are really hit or miss.
And, many times local places do NOT offer a light roast option.
Coffee is much like “politics” or “religion”… each person has her/his own preference, and often a strongly held preference.
I do NOT own any SBUX stock.
But, I do have a lottery ticket on Luckin Coffee.
???
it tasted like green grass in the coffee.
you provided the answer!