Restaurant Prices Outpace Grocery Prices for the First Time since Mid-2021

Doyo - DoYourOrder Restaurant Prices Outpace Grocery Prices for the First Time since Mid-2021

The recent announcement by the Bureau of Labor Statistics stating that restaurant prices have outpaced grocery prices on a 12-month basis since mid-2021 has come as discouraging news for the restaurant industry. This news poses a challenge for the industry, which has been working hard to recover from declining traffic numbers due to volatile economic conditions.

Restaurant CEOs have been touting their meals as relative bargains compared to eating at home. However, based on consumer price index data, this is no longer the case. The increase in food prices away from home is caused by the surge in food prices at schools as free lunch programs instituted during the Covid pandemic have expired. This sharp rise has been putting upward pressure on the overall food-away-from-home index.

While the price of food at home is up 8.4% in the last 12 months, it actually fell 0.3% from February. The price of eggs fell 10.9% in March from the prior month, while the fruits and vegetable index dropped 1.3%. This indicates that grocers have been working hard to put pressure on food and beverage manufacturers to keep prices down as shoppers deal with sticker shock.

Some suppliers have listened to grocers as their volume shrinks. For example, Conagra Brands and PepsiCo have said they won't raise prices any more this year, while McCormick, the owner of Old Bay seasoning, is trying to hike prices but is facing pushback from retailers.

The prices of items purchased by restaurants are expected to keep distorting the overall food-away-from-home index until the fourth quarter. This presents the perfect time for restaurants to continue the digitalization and automation of their work processes to reduce costs and avoid increasing prices to consumers. By implementing technology such as mobile ordering and payment, digital menus, and kitchen automation, restaurants can streamline their operations and offset the rising prices of food. 


The news that restaurant prices have outpaced grocery prices on a 12-month basis since mid-2021 is putting pressure on the restaurant industry to find innovative ways to reduce costs and maintain reasonable prices for their customers. By implementing technology, restaurants can streamline their operations and avoid disruption caused by rising food prices.


How to set up a new restaurant POS and back of the house system ?

As the food service industry continues to grow at an unprecedented rate, the need for efficient and reliable POS and back of the house systems becomes ever more critical. Setting up a new restaurant POS and back of the house system can be a challenging task, with many factors to consider before making a choice. This paper aims to provide a guide to restaurant owners on how to set up a new restaurant POS and back of the house system effectively. It will outline the key features to look out for in any POS system and the importance of choosing the right back of the house system. The paper also takes a practical look at how to choose and implement the right system for the specific needs of a restaurant.


The high cost of running a restaurant coupled with the increasing demand for faster and more efficient service delivery has made the use of restaurant point of sale (POS) systems a necessity. The use of POS systems has become a standard operating procedure for most establishments due to their ability to streamline operations, reduce waste, and improve efficiency. A restaurant POS system can be referred to as the central hub through which a restaurant processes its orders, payments, and sales. It also serves as an interface between different departments of a restaurant, making communication between the front and back of the house seamless. In this paper, we will be looking at how to set up a new restaurant POS and back of the house system.

Key Features of a Restaurant POS System

The importance of an excellent restaurant POS system cannot be overstated. When picking a POS system, there are essential features to look out for, and these include:

  • Scalability: A restaurant POS system should be scalable enough to accommodate the growth of the business.

  • User-friendly interface: The POS system should have a simple interface that is easy to understand and operate, even for non-technical staff.

  • Ability to integrate: Integration capabilities are critical when selecting a restaurant POS system. It should be able to integrate with other systems such as inventory management or accounting software.

  • Secure data storage: The POS system should have a secure data storage system to protect sensitive data such as customer and financial information.

  • Support services: The POS system provider should have excellent customer support services to provide timely assistance when needed.

Importance of Back of the House (BOH) Systems

The back-of-the-house system is essential to the success of any restaurant. BOH systems are used for managing inventory, tracking sales, and producing reports. A proper BOH system ensures smooth operations and a more efficient workflow. It is also essential for maintaining food safety standards and reducing food waste. Here are some essential features to look out for in a back of the house system:

  • Inventory Management: A proper BOH system should have an inventory management feature that helps keep track of all supplies and ingredients.

  • Scheduling: BOH systems should have scheduling capabilities that help identify staff availability and aid in shift planning and scheduling.

  • Reporting: BOH systems should provide reporting features that offer insights into restaurant operations, indicating areas for improvement.

  • Menu Management: BOH systems should have menu management capabilities that help manage menu items, pricing, and availability.

  • Vendor Management: BOH systems should be able to manage vendor properties, pricing, and payments to ensure smooth relationships with suppliers.

Choosing the Right POS and BOH Systems

While there are many POS and BOH systems available, choosing the right one requires careful consideration of several factors, including cost, scalability, ease of use, features, and support services. Here are some options to consider when selecting a POS and BOH system:

  • Cloud-based Systems: Cloud-based systems are becoming increasingly popular as they offer the flexibility of remote access, scalability, and cost-effectiveness.

  • Open-Source systems: Open-source systems are free and customizable, but they require expertise to set up and maintain.

  • Traditional Systems: Traditional systems help provide a physical backup for critical data but may be more expensive to set up and maintain.


In conclusion, setting up a new restaurant POS and BOH system requires careful consideration of various factors. The right system can help streamline operations, improve efficiency, ensure compliance with food safety standards, and boost profits. Before making a choice, it is essential to understand the essential features to look out for in a POS and BOH system and consider the cost, scalability, ease of use, features, and support. The right choice should be made based on the specific needs of the restaurant, keeping in mind future growth and scalability.

6 minutues
How to develop a menu and marketing strategy for a new restaurant?

Opening a brand-new restaurant requires serious planning and strategizing. Two crucial elements of a new restaurant are its menu and marketing strategy. Most food lovers may visit restaurants not just for exceptional food, but for the overall dining experience. Therefore, it is essential to create a menu that appeals to the customers and markets it effectively. This paper aims to explore how to develop an effective menu and marketing strategy for a new restaurant.

Developing a Menu

Creating a menu is essential for any new restaurant. It allows customers to gain an understanding of the dishes offered and the prices for each menu item. When developing a menu, it is essential to establish a theme, control costs, and incorporate relevant styles and types of cuisine. A few tips to help develop a menu are:

  • Determine the Concept: A restaurant's concept is the first step in developing a menu. The concept should reflect the type of cuisine, atmosphere, and style of service that the restaurant would offer.

  • Establish Consistency: Consistency in a menu ensures that the customers are satisfied each time they order their favorite dishes. It is essential to take note of popular items, their preparation, and ingredient requirements, and ensure that these are prepared accurately each time.

  • Focus on Quality: Focusing on quality ensures that the restaurant can use fresh, seasonal ingredients and offer compelling dishes. A restaurant must follow strict control over the quality, taste, and presentation of its menu items.

  • Offer Variety: A good menu should offer a variety of dishes and accommodate any dietary restrictions, allergens, and food preferences that customers may have.

Marketing Strategy

Marketing is essential for any business, and a new restaurant is no exception. Here are a few tips to help develop an effective marketing strategy for a new restaurant:

  • Identify Target Customers: It is essential to identify the customers that the restaurant targets. The menu and marketing messaging should appeal to the target audience.

  • Establish a Unique Selling Point (USP): A USP is what sets the restaurant apart from its competitors. It could be something specific, such as a unique menu item or a superior dining experience.

  • Create an Online Presence: Most people discover new restaurants through online searches or reviews. A restaurant's online presence should include social media profiles, and a website, and be listed on online directories.

  • Plan Promotions and Discounts: Promotions and discounts could help draw interest from customers, and gain attention in the market.


Developing a menu and marketing strategy is crucial for the success of a new restaurant. By establishing a clear concept, focusing on quality, offering variety, identifying target customers, establishing a USP, creating an online presence, and planning promotions and discounts, a new restaurant could gain its desired visibility in the market.

3 minutues


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