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Whether you are a new restaurant or a well-established one, it’s good to be forewarned about potential threats so you can deal with them in a positive way. Listed below are a few threats that any restaurant can face in the future.
RESTAURANT COMPETITION
Your restaurant’s business is always at risk whenever new competition opens up in the market offering the same cuisine.
Large restaurant or fast food chains threaten smaller businesses as they tend to get overshadowed and even driven out of business by bigger chains.
Hiding from these realities is no use, be proactive and build a loyal customer base to help your restaurant prosper in this dog-eat-dog world.
LOW WAGE ARGUMENT
The minimum age argument is as old as time. Restaurant employees believe they deserve more money than minimum wage for their skills and argue that raising their wages raises the country’s economy.
But if restaurants start raising wages, they struggle with their own expenses and end up cutting hours and stopping further hiring, which puts a lot of pressure on the existing staff. However, if they don’t raise wages, restaurants get massive backlash from employees and their customers
The wage argument has always been a double-edged sword, so any decisions made should help improve your bottom line.
RISE IN FOOD PRICES
Fluctuation in food prices is always a fear lodged within the food industry, from restaurants to their supplies to their producers.
Food prices go up and down due to many reasons. Food prices tend to go up for many reasons, including the increase in population to environmental factors like climate change, drought, floods, and shortage of a particular species.
This means restaurants have to pay more for their supplies, but when they raise the prices on their menu, customer loyalty suddenly starts to shift to a cheaper restaurant.
CUSTOMER CHOICE
Customers today are slowly becoming more conscious of their food intake. Fast-food chains have always offered the same standard of food, and now customers want healthier options for incredible tasting food.
Customers’ demand for organic and healthier food options significantly impacts a restaurant’s finances. Restaurants now have to be more transparent about their ingredients, and fast food joints now have to offer salads to pander to all their customers.