Inflation is hitting restaurants especially hard on the supply side, as they are paying more for ingredients and increased labor costs. From the revenue side, customers impacted by inflationary pressures on food and gasoline are reducing their spending for eating-out.
The combination of increased costs and reduced revenues serves to reduce restaurants’ profit margins.
Restaurants have to seek ways to maintain customer traffic, while still maintaining profit margins. Two techniques gaining popularity are dynamic pricing and barbell pricing.
Dynamic pricing, also referred to as […]