Inflation has been the hot topic of discussion within the food and drink industry for the last few months. Not only were most businesses impacted by the Omnicron variant over the Festive period, but with several external factors impacting the economy such as the hike in energy prices, UK inflation rose to 5.4% in December, the highest rate in 30 years.
What does this mean for businesses?
According to the BBC, a typical household will see its income fall by around £1,000 this year after taking the effects of inflation into account. This will have a significant impact on consumer spending habits as eating out is often seen as luxury therefore mid-week takeaway orders are likely to reduce over the next few months. Having said that, with people tightening their purse-strings, there will be less disposable income for big nights out at the weekend and therefore many will turn to takeaways as their ‘treat’ at the weekend.
How can I prepare for effects of inflation?
Understanding consumer habits and market data is vital in order to balance the rising costs of outgoings within your restaurant and attracting customers with the right offers. If your mid-week orders are starting to decline, now is the time to launch some time-specific promotions.
1. Simplify your menu
With the cost of food and drink increasing, it might be time to re-evaluate what you offer to your customers. What The Fork’s partner area gives an in-depth view of your most popular items sold on your app. By analysing this data you can see what your customers are purchasing and simplify your menu accordingly.
Additionally, don’t forget to take the opportunity to up-sell when customers are purchasing from you. If you’ve got side dishes or drinks that you know are popular app purchases, add them as an option within your main meal selection to increase your order value.
2. Understand your spending
As the end of the financial year approaches there will naturally be a lot more attention on where your money is going. If you’ve got several different ordering platforms doing the same thing, now is the time to simplify this. Not only does it give a better user experience for your customers but it also means you’re minimising your outgoings.
What The Fork not only provides you with your own branded app that controls deliveries, collections and table orders but we are committed to supporting local businesses through our community based pricing structure. If you’d like to find out how you can save thousands, contact us here.
3. Utilise your FREE marketing tools
Promoting your brand has never been more important. However this doesn’t mean you have to spend £££ on huge marketing campaigns, you can utilise the tools you already have. Facebook and Instagram are a great way to increase your exposure within your community, by consistently posting images of your menu items and any promotions you’re running alongside your app download link, you’ll be able to drive app downloads and orders.
Customer retention is also vital, once someone has your app downloaded you want to make sure they don’t forget about you. Sending regular push notifications allows you to communicate directly with your customers, notifying them of any offers or just simply making them aware you’re open. 65% of users return to an app within 30 days when they are enabled so it really is a no brainer!
We’re here to help
It’s an understandably worrying time for businesses all over the U.K at the moment which is why we’re here to support our local restaurants and takeaways to make the most of their app. If you have any questions about how we can help your business, get in touch today.