Beef prices & Food costs
Here's a scenario many restaurant operators are no doubt facing:
I operate an Italian restaurant on the East Coast. The recent and dramatic rise in beef prices has caused my food costs to also increase. Now I'm feeling pressure from the higher-ups in my company questioning why my food costs are going up (things are not out of control - we are .16% above our budget in that area). When informing them that part of the increase is due to escalating beef prices, they responded that it was no excuse and that I should find other items on the menu to emphasize. My menu items and prices are fixed by our parent company and cannot be changed - that includes ingredients, portion sizes, etc. So, 2 questions: 1) Am I crazy in connecting the rise of beef prices to my food costs? I don't think so. 2) What ways would you suggest to bring my costs down? In my opinion, if someone heads out to dine and wants a steak, they're going to have a steak. Any input from anyone else in this situation would be greatly appreciated. |
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