With supply chain disruptions and inflationary pressure on food costs, food and beverage management have tapped their creativity to manage the bottom line.
Contributed by Jeanette Hurt
“This has been a big challenge for everybody,” said Guy Rigby, president of Octopus, a F&B consultancy based in Toronto, Canada. “The hotels and restaurants I’ve been dealing with have been caught a little off guard.”
Even with the pandemic retreating, Greg Griffie, senior vice president of the Atlanta, Georgia-based Davidson Restaurant Group, said his team was pretty sure business as usual would not be easily attained. “There’s what we’re dealing with today, but we’re already looking out six months or so to anticipate other challenges,” he said.
To deal with these challenges, the “knee-jerk” reaction is often to simply and immediately raise prices, Rigby said. But while you may need to adjust prices, Rigby thinks that’s not the best solution. “You need to be creative and strategic,” he said. “You also need to do a regular, competitive pricing analysis. I constantly run into hotels, where I ask them, ‘What is the competition charging?’ They look at me as if I’m from Mars.”
Instead of using eight ounces for a burger or a fish entree, how about seven or six ounces? “You shouldn’t be set in your ways,” Rigby added. “If you go down an ounce, can you add volume to the plate with different vegetables?”
Rigby also suggested being strategic to make sure you know exactly what is driving up the cost of an entree. For example, maybe it’s the cost of the bun. “Do you need to find a different bun to bring the price down?” he asked.
Speaking of burgers, which normally are one of the most popular items on a menu, what about having at least three different burgers on the menu, Rigby opined. “Have one at the entry level price, then a deluxe, and then a blowout with truffle fries or short rib and all sorts of delicious things.”
Adam Petta, director of culinary at Event Hospitality, parent company of QT Hotels & Resorts in Australia and New Zealand, said hotel F&B leaders need to be mindful of the supply landscape. “We are always mindful of the supply landscape and its ongoing challenges,” Petta said, adding that everyone also must look at the cost of logistics, of transporting materials to your kitchens.
“We have placed emphasis on working closer than ever with our local growers, providers and suppliers to ensure the best product at the best pricing,” Petta added.
Look for Part 2 of this feature tomorrow.