How much have your prices increased in the last year?
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November 5th, 2006
According to Statistics NZ all food groups showed higher prices for the year to September 2006 (not surprisingly) with the most significant contribution coming from fruit and vegetables (up 19.5 %). What is surprising, however, is that prices recorded for restaurant meals and ready-to-eat food were only up 3.1% on last year.When was the last time you put your prices up?
Increasing prices is something we are often afraid to do, and often it can be an across-the-board price rise.Is this really the best way to do it?
You may have seen Jon Taffer presenting at the Telecom Seminar Series this year.Jon discussed the benefits of ‘Menu Engineering’ which we tend to refer to as Menu Analysis. In plain English it’s a method of evaluating your menu items based on their sales and gross profit contribution. Jon promises an increase of 10% gross profit and a reduction of 1% in your food cost if you take the time to perform this process on your menu.From my experience this is a process only seen in hotels and something which few restaurant owners know much about.
http://www.menu.co.nz/solutions/menu_analysis.htm