Overall sales increased 19 percent from January 2022, peaking mid-month around 35 percent. By segment, Fast Casual ended up on top with 20 percent sales growth, but Full Service was not far behind, ending at 14 percent above last year (hello, double digits).
Lettuce prices continued to drop last month, meaning all those New Year’s resolution-motivated salads probably had some better margins.
Based on our historical data, prices year-over-year (as of February 1) have skyrocketed from $2.73/dozen to $4.17/dozen.Avian fluhas ravaged the entire industry over the last few months. Operators we have spoken to have either absorbed the extra cost or raised prices to maintain per-plate profitability.Let us knowif you’re making menu changes or are seeking alternatives based on these rising prices.
February has come in sunny side up though - our data shows egg prices havedropped13% compared to last month (as of February 14).
South Block, Multiple Locations
ASK [me] ANYTHING
A lot of my vendors are talking about EDI. Can you explain what it is?
EDI stands for Electronic Data Interchange. It’s been aroundsince the 1960s, and for you history buffs, was developed initially for the transportation industry to allow computer systems to communicate with each other.
Today, EDI allows thousands of companies to exchange information (such as orders and invoices) with each other. With technology advances across the entire restaurant industry, the benefits become more evident.
Accuracy:there’s no manual data entry, so errors are minimized.
Efficiency:ordering with EDI is quick, no lengthy phone calls to the supplier or playing phone tag with your rep.
Speed: we have said farewell to the fax machine and the beloved clipboard, information is instantly transmitted with EDI.
If you are using MarginEdge, you can still upload invoices with any handwritten adjustments and we will account for the noted credits. More information can be foundMarginEdge EDI and Reconciliation Tool.
Ask [me] anything! Really. Each month we’ll take a look at the questions we get and answer one here. Have a question about our product, accounting or restaurant operations in general? Email me or message us on our social media channels.
Open Road, Multiple Locations
Order Inflation Up
While you were prepping for a super-busy Valentine’s Day, the inflation numbers were released.
Yesterday's Consumer Price Index Data from the federal government’sBureau of Labor Statistics(BLS) shows overall annual inflation at 6.4 percent, up from the previous month, but still a far cry from summer’s 9.1 percent high. Food prices both at home and away from home increased from the previous month by 0.4 and 0.6 percent, respectively. On an annual basis, food away from home increased 8.2 percent versus 11.3 percent for food at home.
Bothretailersand restaurateurs are actively looking at ways to keep consumers spending, and it seems to be working. Arecent surveyshowed Valentine’s Day dinner spending levels weren't going to be impacted compared to 2022.
CFO 1 Source, New Orleans, LA
'TIS THE SEASON
I know, I know, the February newsletter should be about beautiful dinners for two or chocolate lava cakes or perhaps champagne, amirite? But since this newsletter will hit your inbox on the 15th, I kinda had to go a different route.
The IRS tax deadline is a mere 63 days away (it’s April 18 this year, hooray!), and even though we heard “Don’t Do Your Taxes” throughout a certain football game’s commercials, we don’t really recommend you forgo them for your business. I’ve spent a lot of time over the last six months with accountants and bookkeepers learning the nuances ofrestaurant accountingcompared to a retail store or other small business.
As your trusted financial professionals dive deep into their busy season (and are likely short staffed), we’ve compiled some recommended reading to help them help you.
However, since it is right around Valentine’s Day, I can play financial cupid for you – if you’re in need of accounting or bookkeeping matchmaking services, pleasereach outand I can make an introduction.