Restaurants Increasing Delivery Charges
Increased prices are hardly news with inflation rates currently exceeding 12%. Pandemic consequences, supply chain issues, and general inflation are putting the pressure on businesses to adjust accordingly—and restaurants are not exempt. Owner-operators are making tough but necessary decisions about menu hikes and other cost-cutting tactics.
And because the restaurant industry is becoming more and more digitized, these cost increases have transferred to food deliver apps as well—and Restaurant Business Online says, by as much as 25%.
“Restaurant prices in January were the highest they’ve been in 40 years, increasing more than 6% over the past year as restaurants work to offset rising labor and food costs,” Restaurant Business reports. “But that hike seems minor in comparison to the menu prices on third-party delivery apps, where restaurants are cranking up prices at almost outlandish levels…Fast-food places are more likely to do this, with 27% saying that they raise prices for delivery, compared to 14% of full-service operations.”
While some price increases are necessary for survival, Restaurant Business warns that the uptick in delivery charges is turning-off customers. Owner-operators should proceed carefully when making price change decisions.
“Making wholesale pricing decisions is difficult for most operators,” says Richard Weil, owner, and principle of National Restaurant Consultants. “Consumers realize that the convenience of delivery may outweigh the economic reality of carry out/pick-up or dining-in options. This reality may be closer than we think”.
Our restaurant consultants are experts in analyzing business costs and structuring menus, take out, delivery costs/charges to meet your business’s needs. Working with a consultant to adjust your pricing at every customer touch point during this period of inflation can save you money and time.