The Daily Rail: What Are Other Restaurants Paying for Their Supplies?

Thursday, June 22, 2017


Today's Specials: 


DATA: The Pizza Index for June 2017

The Pizza Index is the industry's first guide to prices restaurants are paying for their supplies. It's compiled from data on hundreds of thousands of real restaurant supplier purchases. It gives you benchmark pricing on key ingredients so you can make sure you're not overpaying.


SPORTS: July Calendar & Preview

Each month we deliver you a calendar so you are never surprised by upcoming programming. Check out this month’s schedule and see where you can promote on social media or run a special that takes advantage of these events.




Michigan: BYOB

Because yesterday was the first day of summer, we found it appropriate to let you know which states you can find the cheapest beer. Food and Wine Magazine ranked the average price of a 24 pack per state with their infographic showing the cheapest states to get your drink on. Psst Michigan BYOB.


BK King of Advertising

Burger King has won the award for best in direct marketing at the Cannes Lions Festival this year for its “Google Home for the Whopper” ad. Reminder: this is the ad where the BK worker says “Okay Google, what is the Whopper?” and hijacks your phone. Crown well deserved.   


Line Cook Overdose

Mental and physical health have long been a problem in the restaurant industry. Munchies restaurant confessionals recently featured an article exploring a story of how a line cook’s heroin overdose taught the owner about running a restaurant.  



Why it matters to you: A cafe faces controversy over gentrification in an LA town.

A new coffee shop in LA has received a lot of attention from protests both physically and on social media. Weird Wave Coffee in Boyle Heights California has been at the center of controversy as activist groups are accusing the new business of gentrification. Gentrification is the process of attracting wealthier individuals to a traditionally working class area with hopes of making the neighborhood more “affluent.” Many establishments have long been accused of gentrification over the years by opening upper-class restaurants in lower class areas.

Many of the protesters claim the coffee shop will aid in encouraging real estate buyers and developers to raise rent prices in the area. Typically, cities including New York and San Francisco have seen the effects of gentrification increasing rent prices to the point where many can no longer afford to live there.  

In response to the controversy, the owners of Weird Wave Coffee stated that they don’t feel the protesters represent the entire local community and feel that they are still supplying the demand for their products. On the opposite side of the spectrum, the protests have actually helped business offering free publicity and bringing customers through the door. Currently, the protesters do not plan to stop until the shop closes meanwhile there are no closing plans anytime soon. Overall gentrification with restaurants is an issue that is bound to see more heat in the near future.



Why it matters to you: What can we learn about pricing from industry disruptors?

As the Fast Casual segment has grown (by some accounts over 6% annually for the vertical) it has been met with the same challenges all operators face. Increased costs for labor and benefits eat away at profitability while the fight for the best talent remains a sometimes overwhelming challenge. There are a few chains that have set a standard of quality that has allowed them to press against the magical $10 lunch plateau, but it takes specific conditions.

Sweetgreens, for example, has raised prices in all of their 66 locations. Their rationale is focused on paying their staff a competitive wage and offering extended benefits like the 5 hours annually paid to volunteer or work at a local farm. Similar operators like Shake Shack, where there is a perceived quality difference, have also had little trouble justifying price growth to fund salaries and benefits for staff. It appears that the newest consumer class, millennials, aren’t insulted when they understand why they are paying a few cents more per item. As long as the extra dough goes to directly to employees and their care, it’s appears to be a price worth paying.