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News and insights for independent restaurant owners

The Restaurant Brief

This Week
Traffic-driven growth is done for now, and chasing covers with promotions is a losing game. What's winning is consistency. The guests who are still spending want to know exactly what they're getting when they walk in your door, and if you deliver that every shift, you become their default. That's a more durable revenue base than any discount campaign you could run.
Your guests are doing math you don't see. They're weighing your check against their drive time, their parking, the wait, and whether the experience matched the price. If any of those variables came up short, they won't come back and they won't tell you why. Tighten your execution before you touch your pricing, because a justified price at a consistent experience holds. A raised price at an inconsistent one doesn't.
Florida just passed a law banning hidden fees on restaurant checks, and other states are watching. More important than the legal side is the guest side. A credit card surcharge or service fee on the final screen is a small charge that lands like a betrayal, and right now guests are already skeptical. Walk your check from the guest's perspective this week and ask whether every line item earns its place or just earns you a bad review.
Your Friday dinner rush isn't just your best revenue window. It's also where a single staffing gap, a ticket printer failure, or a prep shortage does the most damage. The cost of one chaotic high-volume shift is a bad week on Yelp, a burned-out line, and comped food you didn't plan for. Run your peak periods like they need a plan, because they do. ---
Know Your Numbers

Prime cost percentage. Prime cost is your food and beverage cost plus your total labor cost, expressed as a percentage of your sales. It's the number that tells you whether the core of your operation is actually working. The old benchmark was 60 to 65 percent. In this environment, with food costs still elevated and labor tight in most markets, a lot of independent operators are running 68 to 72 percent and wondering why the bank account doesn't reflect how busy they feel. If your prime cost is above 65 percent, you are essentially working to fund your kitchen and your schedule, with very little left for rent, debt service, or yourself. Pull your food cost percentage and your total labor cost from your POS and accounting system for the last four weeks. Add them together. That number tells you more about your restaurant's health than your top-line sales will. This week, run that number for your last full period and compare it to the same four weeks last year. If it moved up more than two points, something shifted and you need to know what it was before you make any other pricing or scheduling decisions. ---

The Brief
This week's takeaway
Before you change a price, add a fee, or run a special, walk your last 30 days of prime cost and find out whether your problem is what you're charging or what you're spending.

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