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The Restaurant Dilemma.

11.24.2008

Over the past year, many restaurants have faced a dilemma. How to make up for rising source food costs? Generally the choice is to either put less food on the plates, or raise the retail price to consumers.

My advice - always raise the retail prices. Customers know that food costs are rising, and people will understand this upfront change. Less food is a 'hidden' change; Previously satisfied customers will be dissappointed when they discover a lesser product than what they were expecting.

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Tags: marketing

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