❌❌ COVID-19 FEE ❌❌
There’s a lot more to this question then should I add a fee or shouldn’t I. For the sake of time and simplicity we’ll keep it as simple as possible.￼￼
I received an @ not to long ago that asked something along the lines of this, With the cost of meat and supplies is going up as the pandemic rages on, who should foot the bill: restaurants or the guests?
‼️ That’s the wrong question to be asking. The real question is, how well do you know your numbers and how lazy are you?
New York City recently passed a bill that allows restaurants to add up to a 10% Covid-19 surcharge to each check. Ouch.
There’s no question that, for restaurants, the cost of doing business has increased amid the coronavirus pandemic.
Rising food prices, increased costs for to-go packaging, third-party delivery fees, protective gear for employees and more have all cut into already-dwindling margins.
What’s less clear, though, is how to make up for those increased costs. Raise menu prices? Cut staff? A number of restaurants are instead instituting COVID-19 surcharges on each check.
Answer: All the above. Whatever is necessary. The same thing you should’ve been doing since you opened.
✅ Labor- you always adjust your labor based on business levels. If you’re slower you need less staff. This should happen automatically every day regardless.
✅ Menu Cost- You should have a firm grasp on the costing of your menu and adjust based on market conditions, etc.￼
Let’s talk food cost & menu costing
There’s a huge misconception in regards to the cost of an item that is placed in front of you in a restaurant or deliver to your house.
You’re not just looking at the cost of the food alone. Factored into that $14.99 delicious mom‘s famous whatever is every other expense as well. Delivery cost and to-go infrastructure, supply price fluctuations, should be figured out and factored into the cost of the item.
Every year like clockwork certain items sometimes double or triple in cost. This is expected and this is planned for. We do not see a seasonal price adjustment % charge on the bottoms of checks. Those pricing fluctuations have already been factored into the price.
Any type of COVID-19 related price fluctuation in raw product such as chicken or vegetables🥬or to go containers needs to be factored into the end price on the menu. Period. It is an incredibly lazy approach to just add a blanket percentage and potentially piss off in alienate the few customers you have.
If you’re adding a blanket percentage I am willing to put money on the table that your costs are out of line and you really have no idea what your true cost of the item actually is are managing by Hope and prayers. Unfortunately hope and prayers hope and prayers are not the most effective management strategy
You have to know your numbers. You have to know how to cost out a menu. These are non-negotiable and you have to do it outside of the guests view.
◾️So the answer obviously the guest is going to end up paying the increased difference whatever that number is. You need to treat COVID-19 like any other major price disturbance and fluctuation in the industry. Adjust your pricing and be done with it. It really comes down to how lazy or not you are.￼
I really think we need to do a deep dive into food cost and costing out a menu. It’s not the most exciting aspect of the industry but it’s the most important aspect that determines success or failure.
You have to know your costs. Stay tune for menu cost fun.