Restaurant Pricing Tactics

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 […]

Target’s Seasonal Aggregate Planning

Target is responding to the nationwide labor shortage with a two-pronged approach in aggregate planning for its retail services.

To prepare for a surge of demand during the holiday season, in addition to hiring new employees, Target is allowing its current employees to work extra hours or shifts.  In addition, its employees can choose times or swap hours with other employees.


Video Spotlight:  


Toyota’s July Production Shortfall Due to Parts Shortages

Facing the challenges of semiconductor shortages and parts supply disruptions, Toyota lowered its July production forecast in Japan by 50,000 vehicles.

Toyota is expecting part shortages to be stabilized later in the year and will run additional shifts to meet the projected annual vehicle production volume of 9.7 million.

Read previous OM in the News posts about effects of the semiconductor shortage on the automotive industry, including some creative solutions


Video Spotlight:  

    […]

For General Mills, Shortages Lead to Price Increases

Ongoing supply chain issues have created material shortages and rising input costs for General Mills.

Disruptions of materials such as fats, oils, starch, and packaging have made it difficult to keep up with demand for General Mills’ ready-to-bake products, pizzas, and hot snacks.

General Mills resorted to changing its recipes to keep products on shelves.  Increased labor, transportation, and raw and packaging materials costs mean that the company will charge customers more for its products.


Video Spotlight:  

Go to Top