How Operators Can Avoid Raising Prices Too Aggressively

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Photo courtesy of John Gordon

What can operators do to avoid raising prices too aggressively? Or should they?

This week’s episode of the Restaurant Business A Deeper Dive podcast features San Diego restaurant consultant John Gordon to talk about the industry’s historical level of menu price inflation and the ultimate consumer response.

Restaurants are raising prices at historically high rates, including 6.9% year-over-year in March, continuing strong price inflation. Restaurants are doing it because their own costs are skyrocketing. Consumers, at least so far, have yet to reject these higher prices.

Gordon explains why consumers have yet to reject the higher prices. It also explains how long it will last. There are growing concerns that consumers will change their spending habits in response to inflation.

However, operators’ own prices continue to rise. Gordon explains what they can do to avoid further price increases and potential consumer feedback, without their margins being further affected.

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