The minimum wage (and the likelihood of its continued climb) has been making a lot of news lately, with a recent Eater report predicting Seattle’s minimum wage increase could upend the industry. The concerns about impacts to the industry aren’t so far-fetched: A study by Harri found that restaurants around the country have responded to minimum wage increases by raising menu prices (71 percent), reducing employee hours (64 percent) and eliminating jobs (43 percent) — all factors that can impact a restaurant’s service model and quality, as well as guest traffic. As the Eater report suggests, the changes can affect the overall experience of dining out, ushering in new service charges, more QR codes in place of servers, and more robots in the kitchen in place of kitchen staff. It’s a future worth contemplating, particularly if your restaurant operates far differently now but might have to modify operations to accommodate economic pressures going forward. Looking at your service model, where is there room for adaptation if needed? Where might you be able to weave in tech-supported changes that make your operate more efficiently while still upholding your values and making your restaurant feel like the same business guests know?

What is restaurant operators’ top source of financial strain? According to TouchBistro’s recent report, “The State of Restaurants in 2024,” a majority of full-service restaurant owners and leaders say it’s rising inventory costs. The report includes feedback from 600 restaurant leaders across the U.S. – and 58 percent of them said they were struggling to manage that particular element of running a restaurant business. But they are also employing a range of tactics to address it – or at least lessen its impact on the bottom line. Specifically, they’re trying to source new, less expensive suppliers, as well as weave more local ingredients into the menu, which tend to come at a reduced operating cost. The balance of options on their menus is shifting too, with more operators leaning on plant-based dishes and non-alcoholic drinks – both of which can be priced at a premium and help raise check totals. Finally, operators are continuing to diversify their income streams by selling items and services beyond their core menu. In a carryover from the pandemic, restaurants are continuing to offer prepared foods, grocery and pantry items, and branded merchandise, while also doubling down on catering services now that people are spending more time working in offices again. Are you using any or all of these strategies to diversity your income streams right now?