Restaurant Industry Challenges: Price Increases are on the Menu

The restaurant sales recovery is in full swing, but the industry is already facing its next challenge, steep food and labor cost inflation. While the Federal Reserve insists inflation is temporary, investors aren’t so sure. Price increases are a critical piece in the profitability puzzle for restaurants but must be approached strategically. The pandemic reshaped trade-areas, consumer habits and boosted buying power for some communities while depressing it for others. Understanding this dynamic around each restaurant is the key to unlocking the localized pricing power, which is critical in maintaining the balance between profitability and value perception.

Please join UCLA Extension as we host Lina O’Connor, Mike Halen and Mike Lukianoff to discuss the inflation pressures the restaurant industry is facing and how pricing strategy can be best implemented to address it.