3 ms·

Sounds like its time for them to raise prices past what they deem to be a reasonable rise. Other restaurants in the area will likely do the same, and not pricin

by posguy 5y ago

Sounds like its time for them to raise prices past what they deem to be a reasonable rise. Other restaurants in the area will likely do the same, and not pricing yourself to match can cause a drop in business as people seem to think the more they pay the better the quality (especially when your service or offering is priced on the low end of the market). You might look at this and say charging $4 for X item is already at the edge of reasonable, but when your neighboring restaurants are already at $6 to $8 there is little reason to offer screaming deals. Its just a sign that its time to reprice to $7 to $8 for your own offerings, providing more profit to interest the dual owners moving forward. Reducing hours would also be a good idea for a owner operated business like this!

pixl97 5y ago
timing the market is everything. Consider this the 'first mover disadvantage'. If you price yourself at the higher end of the market before the rest of the market moves, the lower price competitors will absorb your clientele. In addition, type of food matters a lot. A place that sells 'cheap slop on a plate' has lot less price flexibility than a boutique that sells fancy sushi.
ajsnigrutin 5y ago
The problem is also the alternatives. I could get a "burek" (pastry with cheese) for 2eur, it's cheap, it fills you up, and you continue with your day. Or I could order a pizza delivery... pizza used to be in the 6-8eur range if you lived near the restaurant, so for 12, 13 eur I could get two pizzas delivered to my home. Then "the plague" came, the local pizzeria was closed, delivery was taken over by "app companies" (wolt here), they charge percentages of the food price + delivery cost, so the price of the pizza has gone up to 9-10eur (to cover the wolt fee), and with the delivery fee, we're talking 20-22eur for two pizzas. After the reopenings, the prices in the restaurant are the same as on wolt + with drinks, we're talking close to 30eur for two pizzas and drink. If bureks cost 2.5eur or even 3eur (50% higher), they're still "cheap", and people will buy them. With pizza going from 12, 14eur to 20-25eur, I can make a huge amount of very good food at home, and saving 15eur to eat healthier makes it worth it. TLDR: at some price point (that I currently feel we're at now, with some foods atleast here), it isn't worth it anymore to eat out. Everybody might rise their prices, but less people will eat outside, lowering the overall profits of everyone.
- mitola 5y ago
  You must be talking about Slovenia for comparison?
  - ajsnigrutin 5y ago
    Yes, slovenia, but in other countries it's probably the same, just with different prices, and at some price point, it becomes expensive enough to eat out, that you'd rather choose to cook

by posguy 5y ago

pixl97 5y ago

timing the market is everything. Consider this the 'first mover disadvantage'. If you price yourself at the higher end of the market before the rest of the market moves, the lower price competitors will absorb your clientele. In addition, type of food matters a lot. A place that sells 'cheap slop on a plate' has lot less price flexibility than a boutique that sells fancy sushi.

ajsnigrutin 5y ago

The problem is also the alternatives. I could get a "burek" (pastry with cheese) for 2eur, it's cheap, it fills you up, and you continue with your day. Or I could order a pizza delivery... pizza used to be in the 6-8eur range if you lived near the restaurant, so for 12, 13 eur I could get two pizzas delivered to my home. Then "the plague" came, the local pizzeria was closed, delivery was taken over by "app companies" (wolt here), they charge percentages of the food price + delivery cost, so the price of the pizza has gone up to 9-10eur (to cover the wolt fee), and with the delivery fee, we're talking 20-22eur for two pizzas. After the reopenings, the prices in the restaurant are the same as on wolt + with drinks, we're talking close to 30eur for two pizzas and drink. If bureks cost 2.5eur or even 3eur (50% higher), they're still "cheap", and people will buy them. With pizza going from 12, 14eur to 20-25eur, I can make a huge amount of very good food at home, and saving 15eur to eat healthier makes it worth it. TLDR: at some price point (that I currently feel we're at now, with some foods atleast here), it isn't worth it anymore to eat out. Everybody might rise their prices, but less people will eat outside, lowering the overall profits of everyone.

mitola 5y ago
You must be talking about Slovenia for comparison?
- ajsnigrutin 5y ago
  Yes, slovenia, but in other countries it's probably the same, just with different prices, and at some price point, it becomes expensive enough to eat out, that you'd rather choose to cook