Hey restaurant owners and operators How are you keeping up
with the rising costs in your restaurant? They're going crazy
right now. I'm going to teach you how to do that coming up in
this video right now
Hey everybody, Ryan Gromfin here, author, speaker, Chef,
Restauranteur, founder of TheRestaurantBoss.com,
clickBACON.com, ScaleMyRestaurant.com. And like
I mentioned author of the book, Make It Happen, which you can
get a free copy of at our website , right now just head
over to TheRestaurantBoss.com and grab yourself a free copy of
Make it happen. So how are you keeping up with the rising costs
in your restaurants? Before we get into the content, I want you
to watch this video back at our website, because we offer some
bonus content and some additional content and some free
downloads to go along with this video. But you're not going to
get that on YouTube, or Facebook or Twitter or wherever you're
watching this. So somewhere in the description for this video
will be a link to take you back to our website directly to this
video, where you can watch it over there. I also want to warn
you a little bit ... this video is a little bit of a bait and
switch. Not really. But I definitely want to be upfront
and honest that I use the catchy headline like keeping up with
the rising costs in your restaurant, to bridge the gap to
a topic that is very heavily related to keeping up with the
rising costs in your restaurant. But it's more about the costs
are happening. There's nothing we can do about that. So what
can we do? What we can do is we can innovate. So today's video
is really about innovation, and how that's going to help you
keep up with the rising costs. Because let's just face it, your
costs are going up, your labor costs are going up, your
insurance costs are going up, your rent is going up, your
maintenance is going up your utility bills are going up your
cost of goods sold is going up. So you're having to raise your
prices. And well, I'm not the biggest fan in the world of
raising prices, I do understand that you have to raise prices.
But if you're going to raise prices, what else are you doing
to make sure that your guests expectations are still exceeded?
How are you innovating to make your higher prices worth it for
them? It's not enough to just say, well, everything is more
expensive now so we're going to be more expensive. Look, I bet
you whatever car you're driving right now you're not driving a
1970s car, let's go back 50 years to 1972. If you wanted to
get a good, reliable, nice quality car for your family in
the 70s. Maybe you would have been looking at a Cadillac or
something like that. Yeah, I understand. That's a little bit
on the higher end. But let's use Cadillac as an example. The
Cadillac in 1972 was a good car, it was a little expensive, but
it was a good car, then. The Cadillac today is much more
expensive. I don't want to get into the stats, I did some
research myself about the cost of a car and 72 versus the cost
of the car today. And honestly, it pretty much has fallen in
line with inflation. There's calculators that you can use
that track inflation every year and then figure out what the
price you enter the price of something then and the price of
it today and or it tells you what it should be today. And
honestly they're pretty similar. So cars have not outpaced
inflation. Cars have kept up with inflation. But you get a
better car today. Could you imagine? Would you go to the
dealership and spend $80,000 or $50,000 on a car today that was
the same as 1972? Had a manual transmission or a gear shifter
on the column, no digital readouts, had a tape player with
an am radio, had no GPS, had no auto steering, no Lane Assist,
had no Bluetooth, was still a carbureted engine not fuel
injected, didn't have automatic windows that came down, you
couldn't adjust your seats. Would you spend 40 $20,000 on
that car today? Of course not. So yes, cars got more expensive.
But there's been innovations along the way that have made
them better cars. So while the prices are going up in your
restaurant, what are you innovating? How is your
restaurant better today than it was 20 years ago or five years
ago? or dare I say last year? That's the attitude we have to
adopt. We have to adopt a start up mentality. Most businesses
have a lifespan of about 20 years. Think about IBM. IBM was
the most cutting edge computer company in the 60s and 70s. Now,
they're a services company, they were able to change, but they're
not what they were. Hewlett Packard, was the most innovative
technology company in the 80s. Now, they don't exist. I mean,
they do, but it's very different. They're just a
commodity player. They're not cutting edge like they were
Compaq computers in the late 90s was one of the largest and most
successful computer companies, they don't exist anymore.
Because they weren't able to innovate when things around them
changed. The CEO of Cisco, not Sysco foods, Cisco Systems, the
technology company, John Chambers. Well, the ex CEO, John
Chambers, had a mentality a theory that every 18 months, his
company had to either double the speed of the processor of a
microchip or cut its size in half, they had to either double
the size of a processor or cut it in half. By cutting it in
half, they could add twice as much memory to it in the same
amount of space. And by adding twice as much memory, they could
speed it up. But again, I don't want to get into the
complexities of that. The point is, they knew that if all they
did was produced the same microchip or made incremental
changes to it, someone else would come along and take over
the marketplace. And that is what's going to happen in this
new economy as your restaurant prices go up if you don't
innovate. Because right now, there are people who have a
startup mentality. I'm working with restaurant owners right now
that we are developing concepts for this new economy. And when
those new concepts open, they will take market share, they
will take your market share. These are the disruptor
restaurants, we're already seeing it with Ghost kitchens,
and other things like that. But there are some new concepts that
other people are working on that I'm reading about that we're
working on, that are going to disrupt the way that business is
done. You saw it at Uber, you saw it at Airbnb or VRBO. You
saw it with Netflix against blockbuster. There's no more
Blockbuster videos, there's no more taxis, hotels are dying.
All because of disruptors because of the startup
mentality. Blockbuster could have done what Netflix did, but
they didn't think they had to. They didn't want to invest in
the technology. Taxi cabs could have done what Uber did, but
they didn't think they had to. They didn't want to invest in
the technology. Hotels could set up their systems on Airbnb and
VRBO. But they don't want it. They want to hold on to what
they're doing. And potentially they're going to die because of
it. Don't let your restaurant pop a gravestone up and be
listed in the graveyard. Don't let your restaurant fall six
feet under if you are raising prices, you also have to be
innovating. Now if you're interested in learning more
about this, yesterday, I did a training for The Restaurant Boss
members, where we studied the seven steps to innovations that
CEOs like Steve Jobs, Jeff Bezos, John Chambers, and other
amazing leaders of companies used to continually be
innovating and keep their companies at the top of their
game, if you want to join our membership, so you can go back
and watch that video as well as all the other trainings in the
membership. Get access to SCALE, get access to Ghost Kitchen
Bootcamp, get access to Restaurant Manager
Certification, and then every month get access to a new
training plus a live one on one or not one on one but a live Q&A
session where you can ask me questions one on one and I'll
answer them for you. Check out The Restaurant Boss membership.
There'll be a link below this video or just go to
TheRestaurantBoss.com/membership and learn more about how you can
get access to that.
I hope you enjoyed this week's video. I hope you're not mad at
me for sort of switching the topic here to a topic of
innovation, but I know how important it is for you. And
remember systems create freedom. Freedom creates value value
creates scale. I love every single one of you crazy
restaurant people. And I'll see you next week with another great
video just like this. Bye Bye. If you want to learn to play the
guitar, you'd hire a coach. If you want to learn to swing the
golf club, you'd hire a coach, a great coach helps you achieve
your goals faster. So why would you try to grow your restaurant
without a coach getting access to our top quality training was
financially out of reach for many restaurants. Until now. The
Restaurant Boss Membership gives you access to all of the
training, resources coaching and webinars you need to properly
increase your profits, improve your operations and grow for
less than a cup of coffee a day. Plus when you join our
membership program. You can work with me weekly. We call it
rocket fuel. And I bet you can guess why are you ready to
create real change in your restaurant? Join the Restaurant
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scale, manage systems, develop people and be awesome