Best Practices for Dealing with Fluctuating Food Costs
2 Min Watch By MRM Staff
Successfully navigating fluctuating food costs, especially with volatile ingredients like eggs, requires a multi-faceted approach, Mike Stasko Jr., Vice President of Brand Strategy for Sunny Street Cafe, tells Modern Restaurant Management (MRM) magazine. By combining proactive planning, strategic menu adjustments, operational efficiency, and strong vendor relationships, businesses can effectively manage these challenges while prioritizing customer satisfaction and food safety.
Since Sunny Street's inception 16 years ago, Stasko has led various departments – including menu design, product strategy, the move to a bright and fresh restaurant design, and its family-centric marketing focus. These brand improvements have led to both increased revenue and improved prime cost controls.
With egg prices increasing by 30 percent over the past year and expected to rise more, MRM asked Stasko for his best advice on what strategies restaurant owners can implement to prevent sharp menu price increases and innovative menu solutions they can implement.
What are the best practices for dealing with food costs for recipes when necessary items are fluctuating in price?
Regular Price Monitoring
Implement a weekly review of ingredient costs to stay informed about market fluctuations. This presents an opportunity to verify recipe accuracy and identify potential cost-saving adjustments.
Menu Engineering
- Feature Stable Ingredients: Highlight dishes with ingredients less susceptible to price swings. Utilize suggestive selling techniques and promote these items through specials and online ordering platforms.
- Strategic Egg Usage: Reimagine egg-centric dishes to utilize fewer eggs without sacrificing perceived value. For example, instead of a three-egg omelet, offer a hearty skillet topped with a single egg and enhanced with other proteins, vegetables, and cheeses.
Are there ways you can lock in prices on some items to deal with fluctuating costs on others?
● Vendor Partnerships: Collaborate with suppliers to explore opportunities for cost savings and potentially lock in prices on stable items to offset fluctuating costs elsewhere.
How can you avoid rising prices on egg-focused menu items?
● Recipe Optimization: As mentioned earlier, re-evaluate egg-heavy dishes. Consider offering smaller portions, incorporating egg substitutes where appropriate, or finding creative ways to add bulk and value with less expensive ingredients.
● Consider entrees with one egg rather than two or three. For example, rather than an omelet feature or LTO, build a skillet that is topped with one egg, made more substantial with other proteins/ingredients.
What are some strategies to offer guests items they want, but have it be cost-effective for the operator?
● Daily Monitoring: Incorporate daily monitoring of egg prices and overall food costs to stay ahead of market trends and make informed decisions.
● Open Communication: Maintain transparent communication with staff and vendors to foster a collaborative approach to managing cost challenges.
As the operator of a business focused on eggs, how are you dealing with the stress of escalating prices?
● Rigorous Food Safety Practices: Adhere to strict storage, labeling, and dating protocols for all eggs. Regularly train staff on safe egg handling procedures.
● Supplier Due Diligence: Partner with reputable suppliers who prioritize traceability and maintain high food safety standards.
What are the best ways to ensure food safety when sourcing eggs?
● Proper storage, labeling, dating and food safety practices in your operation. Making sure your suppliers have top-notch traceability practices in place.
The video from WBAL details how some Baltimore-area restaurants are managing higher egg prices.