Restaurant Industry Threats You Should Know
Every business faces a range of threats and obstacles that stand in the way of its success and restaurants are certainly no exception. The restaurant industry can be notoriously challenging to succeed in and many owners find themselves closing up shop before even a few years have passed. Even once you get past this initial period, you have to remain on guard against the many threats that could impact your business. Here at Commercial Appliance Service Company we do our part to help restaurant owners and managers address the threat posed by poorly functioning equipment; we have more information that you should keep in mind when trying to succeed in the restaurant business.
Direct Competition
Restaurants can sink or thrive depending on the kind of competition they have. Although a similar menu is certainly enough to position a company as a rival, service expectations also play a role in the development of restaurant competition. For instance, two restaurants may serve burgers but if one is a fast food restaurant and the other is a family-oriented sit-down restaurant, they are not precisely competition even though they serve similar items. However, in some markets a similar menu may be enough to generate competition between different eateries.
Rising Food Prices
Many factors affect the way a restaurant selects food for their menu, including:
These and other variables add up to uncertainty in the food market, which drives up prices. Restaurants often operate on a very thin profit margin so there are typically few resources available to absorb the impact of changing food prices. This introduces serious uncertainty into the life of a restaurant business.
Wages and Working Conditions
Restaurants are especially sensitive to the effects of public perception regarding low wages, working conditions, and similar employment-related factors. The public associates strongly with the face of your business – servers, cashiers, bartenders, and other front-of-house employees – and wants to feel confident that they are treated well. Wage disputes and other problems can threaten the well-being of a business very quickly.
Keep Your Business Running Smoothly
While we cannot solve the problem of the economic roller coaster, we can help ensure that your restaurant’s appliances are operating at peak efficiency. Contact Commercial Appliance Service Company today by calling (707) 544-5200 to schedule a service visit from one of our expert technicians.
Direct Competition
Restaurants can sink or thrive depending on the kind of competition they have. Although a similar menu is certainly enough to position a company as a rival, service expectations also play a role in the development of restaurant competition. For instance, two restaurants may serve burgers but if one is a fast food restaurant and the other is a family-oriented sit-down restaurant, they are not precisely competition even though they serve similar items. However, in some markets a similar menu may be enough to generate competition between different eateries.
Rising Food Prices
Many factors affect the way a restaurant selects food for their menu, including:
- Changing seasonal availability
- The impact of storms, droughts, and other natural disasters
- Changes to distribution network
- Labor shortages or uncertainty at any point in the distribution chain
These and other variables add up to uncertainty in the food market, which drives up prices. Restaurants often operate on a very thin profit margin so there are typically few resources available to absorb the impact of changing food prices. This introduces serious uncertainty into the life of a restaurant business.
Wages and Working Conditions
Restaurants are especially sensitive to the effects of public perception regarding low wages, working conditions, and similar employment-related factors. The public associates strongly with the face of your business – servers, cashiers, bartenders, and other front-of-house employees – and wants to feel confident that they are treated well. Wage disputes and other problems can threaten the well-being of a business very quickly.
Keep Your Business Running Smoothly
While we cannot solve the problem of the economic roller coaster, we can help ensure that your restaurant’s appliances are operating at peak efficiency. Contact Commercial Appliance Service Company today by calling (707) 544-5200 to schedule a service visit from one of our expert technicians.