How Restaurant Operators Can Pivot in a Challenging Environment
Concepts can pull pages from other segments to maintain top-of-mind awareness among increasingly selective consumers. If the current environment is giving you 2008 or even 2020 vibes as a restaurant operator, you’re not alone. “It’s hard right now. We feel the heat,” US Foods restaurant operations consultant Kristin Hughes said during last week’s Food Fanatics event in Las Vegas. But she added that restaurateurs pivot better than anyone and outlined ways to do so now — amid consumer pullback, policy uncertainties, and higher cost inputs — across service models. That includes pulling pages from other segments as the industry fights for increasingly selective consumers. Quick-service concepts, for example, execute meal deals, drive-thru channels, and loyalty programs better than other segments. That doesn’t mean other segments can’t create their own interpretations, however. A meal deal in fine dining could include a chef tasting menu or bundle, Hughes said. To replicate the convenience of a drive-thru, sit-down restaurants could create a wine program to go or a to-go-only menu featuring exclusive items. And, for loyalty programs, they could offer VIP-only tables, chef tastings or double points on slow nights, or a bourbon club. “We know loyalty programs work for quick service, but how do we do them smartly at fine dining? The point is to build loyalty so that customers are coming in during your off hours,” Hughes said. “These are all ways to think about getting extra dollars in the door.” What does fast casual do best? According to Hughes, digital ordering, and built-to-order/customized offerings. “But online ordering shouldn’t just be for fast casual anymore,” she said. “If you have a good system, you can push out notifications with messages like, ‘We haven’t seen you in a while. Come in and get a free appetizer.’” Using online ordering also allows operators to upsell and promote limited-time offerings, regardless of segment. “We know LTOs draw people in. They’re a call to action that says, ‘you can only get this now,’” Hughes said. “They also create excitement. Think about what you do great and provide it as a call to action.” The full-service playbook includes Instagrammable spaces, family-friendly options, and diverse menus. Hughes said it’s important to be mindful about the role of social media with an appealing environment and menu. “Give customers the space to take pictures and they’ll do the work for you,” she said. “As we’ve moved into social media, we know that one TikTok can take you from slow to a two-hour wait every day. That has everything to do with your items that catch excitement”…
Why Portion Sizes Might Be Killing Your Food Cost
You might think your guests will love you more if you give them monster portions. That’s not always the case. Portion control doesn’t make you cheap. It makes you profitable. You’re not going to get your food cost under control if you let your restaurant guests throw your money away in the trash. And trust me, they are. Every time plates come back with half the food untouched, you’re not feeding your guests, you’re feeding the garbage can. To figure this out, let’s go back to basics: portion control. It may not be flashy, but it’s one of the fastest ways to plug food cost leaks, and you can start today. Why big portions are bad business. Think about it: big portions equal big waste, which equals big food cost. It’s that simple. You might think your guests will love you more if you give them monster portions. But here’s the truth: when half the food ends up in the trash, you’re not just wasting product, you’re wasting profit. And when plate costs start climbing, it’s easy to blame your distributor. But sometimes, the real culprit is you and your over-portioning habits. Let me give you a real example. I talk about this all the time at seminars, group coaching calls and one-on-ones. Say you’re running a $1 million/year restaurant, and your number one side is French fries. With portion control alone, you could be saving $300 to $500 per week. Don’t believe me? There was one restaurant owner I worked with—name left out for good reason. His food cost was out of control. We implemented recipe costing cards, portion controls, prep systems, inventory—everything. But he still noticed something was off. So, he turned to his waste tracker, a simple clipboard system where anything wasted gets written down so it can be addressed right away. What he found was shocking. His cooks were opening full bags of French fries and dumping them into the fryer—even during slow hours—so they could portion them quickly later. The result? Cold, limp fries that died under the heat lamp, day after day. Every single day, fries were tossed in the trash. $500 a week gone. That’s $26,000 a year in French fries alone. We fixed it with one simple change: pre-portioning fries during slower hours. Full bags were only cooked during rush times. Even then, cooks were required to use a cup, scale, or bowl to ensure accurate portions on the plate every single time. The owner took it seriously. When one cook ignored the policy and dumped a full bag in the fryer after 1 p.m., the owner marched up to him, asked for $20, took the bill and set it on fire. Dramatic? Yes. Would I recommend that? No. But it made a lasting impression—and the culture changed…
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How AI Is Revolutionizing Restaurant Inventory
Inventory management is one of the most time-consuming, error-prone, and least favorite task for staff. Even with their best efforts, staff using traditional manual inventory methods can’t be 100-percent accurate. This level of inaccuracy and inefficiency can lead to revenue loss, lower staff productivity, and less time spent with customers. But inventory does not have to have be a burden. According to a recent study by TouchBistro, 95 percent of independent, full-service restaurants now use AI in their operations. The most common applications are inventory management and menu optimization, each reported by 35 percent of respondents. With AI, restaurants are beginning to revolutionize their approach to inventory management. By integrating AI into their existing systems, restaurants can streamline processes, improve accuracy, and ultimately save time and money. Not to mention free up employees to do more of what matters, keeping customers happy. Traditional methods of counting inventory often involve clipboards, spreadsheets, and even late-night shifts. These methods are not only outdated, but they are also dramatically inefficient. Restaurant workers must walk through storage areas, locate each item, and manually record stock. This process is tedious, labor-intensive, and highly prone to error. Even the smallest mistake in inventory counts can result in overstocking, understocking, and food waste. All of which affects the restaurant’s bottom line. In addition to being unreliable, manual inventory counts pull employees away from daily operations, which reduces operational productivity and increases labor costs. On top of that, the repetitive nature of manually counting leads to worker fatigue – furthering the potential for errors. AI changes this by automating the process. The result? Faster counts, fewer errors, and less frustration from busy employees. Implementing AI in restaurant operations does not mean replacing staff. It means empowering them. Today, AI is available at the fingertips of every restaurant employee. Companies are dramatically changing how inventory is done by transforming static inventory environments into intelligent, real-time systems. By using handheld devices (smartphones or tablets), employees can conduct faster and more intuitive, automated inventory counts. Employees simply use the device to scan a single shelf for immediate insights into stock throughout the restaurant…
Redesigning the Plate
How beef driven menu strategies can combat today’s menu cost challenges. It’s no secret: running a foodservice operation in 2025 is harder than ever. Between skyrocketing food costs, relentless labor shortages, and evolving consumer expectations, operators are under pressure to do more with less—while still delivering high-quality, craveable dishes that resonate with guests. In this landscape, one thing is clear: every item on the menu must earn its place. Profitability isn’t a side dish—it’s the main course. And that’s why foodservice leaders are rethinking their approach, starting with a hard look at what they serve, how they serve it, and how they talk about it. With margins squeezed, operators must analyze ingredient costs, prep time, and cross-utilization like never before. Streamlining a menu doesn’t mean sacrificing creativity, it means ensuring every dish pulls its weight. Whether it’s identifying underperforming items or leveraging ingredients across multiple dishes and dayparts, data-driven menu strategy has become a key survival tool. But financials are only part of the equation. The right menu can also ease labor burdens. Operators are favoring versatile proteins and prep-friendly recipes that simplify kitchen execution while maximizing value. Few ingredients offer the same flexibility, flavor impact, and customer appeal as beef. From breakfast burritos to globally inspired bowls to center-of-the-plate steak entrees, beef can star in every part of the day while delivering on taste, nutrition, and profit. “One of beef’s biggest strengths is its adaptability,” said Nichole Hockenberry, Executive Director of the Pennsylvania Beef Council. “Whether you’re running a limited-service kitchen or a full-service bistro, beef can flex across formats, cuisines, and prep methods.” Kaitlyn Swope, Director of Channel Marketing at the Council, added: “With rising interest in high-protein meals, beef naturally stands out. A three-ounce serving delivers nearly half the daily value for protein—something guests notice and appreciate.” From value cuts that can be slow-roasted or braised into comfort classics, to premium grinds that elevate burger menus, beef offers operators an unmatched range of culinary solutions. Even less traditional cuts, when paired with the right marinades or global flavor profiles, offer excellent ways to innovate without inflating food costs…
Restaurant Profitability Has Taken a Hit Since the Pandemic
According to the National Restaurant Association, median profitability at all restaurants remains lower than it was before the pandemic. Restaurant profitability remains below where it was before the pandemic, challenging the industry at a time when inflation-related traffic challenges are forcing many companies to push more discounts and value offers. According to the National Restaurant Association’s latest data abstract, median income before taxes at full-service restaurants is just 2.8% of revenues, compared with 4% in 2019. At limited-service restaurants, income before taxes was 4% of revenues, compared with 6% in 2019. The weakened profitability has come despite historically high increases in menu prices, which has turned off a certain segment of the U.S. consumer. Yet those increases haven’t been enough to offset restaurant profits. It also signals the difficulty many operators have been in over the past few years. While many operators have raised prices at above the rate of inflation, it has often not been enough to offset their own higher costs for food and labor. “You don’t want to raise menu prices too much because you’re going to turn off the consumer,” Chad Moutray, chief economist for the National Restaurant Association, said for an upcoming episode of the Restaurant Business finance podcast A Deeper Dive. “You’re going to affect overall traffic. And so the overall bottom line has gotten squeezed.” The data also highlights a key reality in the restaurant industry: A lot of seemingly successful, independent restaurants are only a couple of bad months away from bankruptcy. To wit: Median income at the lowest quartile of full-service restaurants was a loss of 2.1% of their revenues. At limited-service restaurants, that bottom quartile lost 0.3%. Restaurant industry traffic has been broadly weak in recent years, due largely to consumer frustration over prices, particularly among lower-income consumers. Moutray suggested that there are “two Americas,” and that while upper-middle and higher-income consumers are doing well, others are not. “It’s certainly where you’re seeing some of the weakness, particularly in the fast-food segment and others,” he said. Still, the weakened profitability could make it more difficult for some restaurants to address that issue. Driving much of the industry’s costs are labor. The cost of salaries and wages, including employee benefits, cost the median full-service restaurant operator 36.5% of their revenue. That was far higher than the median labor cost at limited-service restaurants of 31.7%. But limited-service restaurants’ food and beverage costs were higher than the cost at full-service restaurants, 31.3% compared with 30%…
Why Courage is Vital in Growing Your Restaurant Brand
Whether you’re an emerging operator or scaling into new markets, growth always brings uncertainty. n the restaurant business, success doesn’t follow a straight line. It twists and turns through uncertainty, adversity, and doubt. Those who endure and grow aren’t just lucky or brilliant; they’re courageous. Behind every expansion, turnaround, and record-breaking quarter, is someone who refused to back down when the road got rough. Over the course of my career, I’ve worked with hundreds of operators and led national brands through both growth and contraction. One pattern holds true: courage is one of the “guts” of growth. Without it, scaling a restaurant brand is nearly impossible. Courage: The Compass in the Unknown. Whether you’re an emerging operator or scaling into new markets, growth always brings uncertainty. You’ll be tempted to play it safe—maybe stick with that’s worked before or chase every trend to keep up. But real growth happens when you’re willing to bet on yourself and your brand, even when the data isn’t 100% conclusive or the market feels saturated. Courage is what keeps you moving forward when the blueprint doesn’t exist yet. Courage In the Trenches. Having worked with operators who opened new locations during economic downturns, negotiated with landlords under pressure, and reinvested in remodeling even when cash flow was tight—they weren’t reckless; they were resolved. That’s the kind of grit it takes to grow. I remember one franchisee who fought to keep a struggling store open despite mounting losses. Most would’ve closed the doors. Instead, he restructured management, retrained the team, and rebuilt community engagement. Today, that location is one of his top performers. That kind of decision isn’t made with perfect data. It’s made with conviction. Courage isn’t just about taking big or wild swings. It’s about building the muscle to act decisively when the outcome isn’t certain. Mindset Before Skillset. While some people may be more naturally included toward risk, courage is often developed over time. It’s built through experience, practice, and repetition. As Walter Bond says in his book Swim!: “You can’t develop your skillset until you develop your mindset.” Too many people focus on tactics before they’ve strengthened the inner core it takes to carry those tactics out. Courage isn’t the absence of fear; it’s action in the face of it. And it’s a mindset that must be reinforced daily…
Menus Pop with Tastes of Fall
Labor Day has come and gone, and restaurants are quickly transitioning from summer to fall flavors. Pumpkin arrived on menus several weeks ago and continues to cast its orange glow on food and beverages. But other flavors and ingredients are at the ready to push pumpkin aside, and activity is ramping up in breakfast, chicken, and bowls. Oktoberfest comes to breakfast at Einstein Bros. Bagels with new limited-time offers running through Nov. 4. The Oktoberfest Egg Sandwich is the headliner, a toasted pretzel bagel stacked with cage-free eggs, ham, bacon, Swiss cheese, mustard, and the new Beer Cheese Shmear—a blend of cream cheese and pub-style beer cheese. The Pretzel Bagel Double Dipper features that same beer cheese shmear and deli mustard accompanied by a hot pretzel bagel; guests are encouraged to rip and dip the bagel in the cheese and mustard. Banana pudding is the common thread for two indulgent brunch items at Ruby Slipper. Banana Pudding Beignets are filled with banana pudding cheesecake and finished with warm bananas foster sauce, vanilla wafer crumbs, whipped cream and a cherry, while Banana Pudding Stuffed French Toast layers buttery brioche with banana pudding cheesecake, a topping of bananas foster sauce, and the same cookie crumbs, whipped cream and cherry. Bacon Kimchi is the theme for Bonchon’s limited-time menu. Usually served as a side at the Korean chicken chain, kimchi stars in Bacon Kimchi Stir Fry Udon, a combo of wheat noodles with bacon, pork belly, kimchi and onions in soy garlic and spicy sauce, topped with a fried egg and scallions. Also on offer is a Bacon Kimchi Rice Bowl with bacon, pork belly, kimchi and onions sauteed in the same two sauces and served over rice, topped with fried egg and scallions, and Bacon Kimchi Fries topped with bacon, pork belly, stir-fried kimchi and onions finished with mozzarella, scallions and a drizzle of spicy mayo. Fried shrimp has a new coating at Captain D’s. The fast-food seafood chain is now dipping its shrimp in the same savory and lightly seasoned batter it uses on its Hand-Batter Dipped Fish to give Batter Dipped Shrimp a golden, crisp exterior. Through Oct. 26, customers can purchase the Batter Dipped Shrimp, Fish & Fries Meal for $5.99 at participating locations. Cousins Subs launched a Crispy Chicken lineup featuring four limited-time items. The Crispy Chicken Sub includes crispy chicken tenders, lettuce, tomatoes, pickles, and mayo on Italian bread; a spicier Buffalo Ranch Crispy Chicken Sub includes ranch and Frank’s Red Hot Buffalo Sauce. The menu is rounded out with a three- or five-piece side of crispy chicken tenders with a choice of barbecue, buffalo or ranch sauce and a kids’ meal option of two tenders, a juice box, cookie, and applesauce…
Did You Know?
Reignite Your Passion: Protecting Your Restaurant Brand from Burnout. There is no doubt that your brand is essential to your restaurant’s success. As discussed in earlier articles, the most important elements in building your brand are the restaurant’s food, service, and ambiance. Equally crucial are your customers’ experiences and the word-of-mouth feedback they share. But what makes this great food, service, and ambiance happen? What are customers talking about that makes your restaurant thrive? The simple answer is you. You are the key to your brand because, in ways, you are the brand…
Employee Tip
Balance: Rewriting Hospitality’s Blueprint. September is Recovery Awareness Month. It’s a time to spotlight the challenges of addiction and mental health, and more importantly, the possibilities for change. In hospitality, this conversation is long overdue. We don’t have a “mental health problem” in our industry. We have a systems problem. For decades, we’ve built restaurants, bars, and hotels on a blueprint that rewards overextension and normalizes unhealthy coping. Recovery Awareness Month isn’t just about celebrating those who have overcome addiction — it’s about looking at the environments we work in and asking: Are we helping people stay well, or are we pushing them to the brink? And not just pushing them to the brink but often ignoring, or even denying, the very fact they may need help at all…
