5 ways to prepare your restaurant employees when you raise menu prices
There are a number of challenges facing the foodservice industry as organizations navigate the post-pandemic 鈥渘ew normal.鈥 Causing the greatest disturbance to operations today, however, is the unprecedented and continued global inflation. It鈥檚 resulted in increases to the price of just about everything, including restaurant menu items.
The producer price index for food manufacturing in the last two years. Full-service menu prices rose last year, inflation has hit and operators are planning more increases because they鈥檙e still not recovering lost profit margins. And this is all on top of rising labor prices and major supply chain delays and shortages.
According to industry expert George Minakakis, it鈥檚 a situation that requires organizations to prepare their staff in order to properly meet customer needs.
鈥淐onsumers who frequent restaurants will notice pricing changes that are currently happening pretty much right across the board,鈥 he says. 鈥淚n fact, you would be surprised how many people will even notice a five-cent increase on a cup of coffee. What this results in is undue strain and stress on restaurant employees, particularly frontline staff, who are burdened with conveying, almost justifying, the menu increases to customers. The key in addressing this issue and in preparing staff to be able to do this most effectively, is to ensure clear and strong communication with them.鈥
But if done properly, Minakakis says, if the internal message is managed, then the customer story will be managed as well. It鈥檚 a concept that he鈥檚 developed throughout his extensive leadership career within the retail and foodservice industries, which included working as Franchise Business Development Leader at what is now YUM! Brands鈥攖he Fortune 1000 corporation behind KFC, Pizza Hut, Taco Bell, The Habit Burger Grill and WingStreet.
The idea of managing this internal message starts with providing restaurant employees with the information and understanding necessary to do their jobs with confidence.
Here are Minakakis鈥 top 5 ways to prepare restaurant employees when you raise menu prices.
1. Educate your staff
The first thing to do, advises Minakakis, is to educate staff concerning the reasons why prices are increasing. And, in order to ensure adequate transparency, he urges owners and managers to be honest about the reasons. It will arm staff with the knowledge they鈥檒l need when responding to inquisitive customers.
鈥淟et your employees know that inflation and cost increases are a global phenomenon that everyone, everywhere, is trying to work through. Explain that the adjustments that have been made have been done as reasonably as possible, highlighting exactly how much the price increases are and for which items on the menu. The more they know, the more effectively they鈥檒l be able to manage the customer story for the brand,鈥 he says.
2. Focus on continued value
Minakakis explains that in order to continue satisfying customers in light of menu price increases, a renewed focus on the value the organization offers should be underscored whenever possible.
鈥淚t鈥檚 no secret that recent increases to menu prices are, in most cases, simply meant to offset cost and ensure the same, if not greater, level of service and quality,鈥 he says. 鈥淪o, staff should be encouraged to focus on the value of the incredible service that鈥檚 provided and the amazing menu items that everyone enjoys. When the customer sees that service levels are maintained and that they can still enjoy their favorite meal, price increases for many quickly becomes a non-issue.鈥
3. Empower restaurant employees to provide options
Many customers will be curious to find out how long increased prices on the menu might last and if they might lower in the future. Minakakis suggests that restaurant owners and managers keep employees updated concerning the situation, including near-term plans. Understanding the current state of the market helps employees confidently answer these types of questions from customers. And, he adds, it鈥檚 actually a situation that provides frontline staff with the opportunity to become creative in the options that they offer customers.
鈥淓mployees have got to be aware of the restaurant鈥檚 plans with respect to pricing. A common inquiry over the course of the next few months will be whether or not pricing is going to come back down. Empower your staff, letting them know that it鈥檚 currently unclear whether prices will come down or not and that their message should be around uncompromising quality. Employees can explain to customers that in spite of price increases, the restaurant is always looking for ways to lower costs and offer greater options in order to deliver the value they seek,鈥 he says.
4. Prepare restaurant employees for angry customers
Angry and belligerent customers unfortunately come with the territory for anyone working within a customer-facing position. Minakakis says that it鈥檚 vitally important for restaurant owners and managers to not only prepare their staff with respect to explaining the price increases to customers, but to also ensure that they are ready to address negative questions and responses from angry guests.
鈥淚t鈥檚 probably one of the worst challenges about working within the foodservice industry. You鈥檙e not always going to please everyone. And, sometimes, people are going to get upset,鈥 says Minakakis. 鈥淩estaurant employees dealing with the public need to be reminded to reiterate the reasoning for the price increases in these situations, explaining that the restaurant is dealing with the same market changes and inflation as everyone else. And, make sure that everyone reinforces the same message, maintaining consistency in communication.鈥
5. Make the visit about the experience
Minakakis points to pent up consumer demand for experiences as a great way for many to highlight the value in dining out. He says that by doing so, you鈥檒l not only keep customers satisfied, but will also invigorate the brand and increase positive engagement with customers.
鈥淚t鈥檚 obviously incredibly difficult attempting to explain the reasoning behind increases to menu items. And, it also tends to distract from the real value in eating out with family and friends. It鈥檚 about being out and away from the house and in hospitable and friendly surroundings. It鈥檚 always very much been about the experience. And restaurant owners and managers should make sure that the experience and the excellent service that helps support a great one, becomes the focus. When you make your guests feel welcomed and appreciated, you鈥檇 be surprised how quickly they鈥檒l forget about menu price increases,鈥 he says.
鈥
The need for most restaurant owners to raise prices on at least some menu items is becoming an inevitability. However, as Minakakis points out, doing so does not at all mean that service, quality and a satisfied customer needs to be sacrificed. On the contrary, given the current economic climate and market conditions, it might be the ideal time for restaurant owners to become creative in finding ways to enhance the service they provide and quality they create in order to enjoy continued growth and success during these challenging times.