Addressing a key source of financial stress for restaurants

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?